More spending needed for true recovery

A news piece from last year about mice nibbling away an elderly Chinese man's life savings tells us two things. First, the stove, as in 80-year-old Yang Lihong's case, isn't exactly a safe piggy bank. Second, and more importantly, it highlights the norm among Chinese households to stash away cash for a rainy day.

Thrift is a value promulgated throughout much of Asia, especially China, and that in large part explains the country's high savings rate, estimated to be about 40 percent of GDP. Consumerist culture has no doubt caught up in recent years, but for the Chinese economy as a whole, the propensity to save outweighs the willingness to spend. The "100-yuan-a-week" campaign made famous by 24-year-old Chinese photographer Wang Hao on his blog shows that even those from the so-called Generation Y can take pride in being frugal.

Unfortunately, this is not what the world requires. What is most needed today is a more even balance of the consumer psyche between Asia and the West. There is a pressing need for the West to save more and Asia to spend more. The world economy is on the mend and improving economic data across Asia - the rebound in South Korea with three successive quarters of growth merits attention - suggests the region is set to enjoy steady growth this year.