A diverse politically fragmented region with the immense potential of production and utilization, Asia sets out to be the future for global economic prosperity. Europe governed the 19th-century while the United States dominated the 20th century. Forthwith, the 21st century belongs to Asia. An expert views it as “restoration” as Asia accounted for more than half of world economic output for 18 of the last 20 centuries. Substantiating a tectonic shift in global power, Asia confirms to steer universal discourse.
Asia’s fraction of global goods trade rose from 25 percent in 2000–02 to 33 percent in 2015–17. In contrast, Europe’s share waned from 26 to 22 percent, and North America from 25 to 18 percent from 2000 to 2017. Past the epoch of Western hegemony, Asia is returning to commerce and cultural exchange that prospered before European colonialism and American predominance. With a swift rise, today, the Asian territory has an increasing global share of trade, capital, people, knowledge, transport, culture, and resources. This multi-civilizational order bonds five billion people through business, finance, infrastructure, and diplomatic networks – representing 40 percent of global GDP creating a new Asian system.
Japan stood as the first leader of the postwar Asian growth miracle. The “Tiger” economies including Hong Kong, Singapore, South Korea appeared next which was then followed by China. The recent fourth wave comprising South and Southeast Asia forms to be the pillar of the modern Asian narrative. Being highly diverse, Mckinsey research identifies four distinct Asian groups, each at a different phase of economic development contributing to the region’s global surge. First Asia involves China operating as an anchor economy. In 2013–17, it accounted for 35 percent of total Asian outbound FDI. The second group including Japan, Singapore, and South Korea defines “Advanced Asia”, all being highly urbanized and connected. Next comes the “Emerging Asia” – Indonesia, Laos, Malaysia, the Philippines, and Thailand providing high growth capacity, owing to rising productivity and consumption. By contrast, the fourth faction “Frontier Asia and India” has the lowest average share of intraregional flows, amounting to just 31%. However, the numbers are set to increase with young labor forces and fresh market opportunities as they integrate with the rest of Asia. Dynamic intraregional networks, in particular, industrialization, innovation, and cultural and mobility confirm to reinforce those flows and connections.
Read More at https://www.financialexpress.com/world-news/is-this-the-asian-century-potential-and-challenges-in-asia-growth/2220134/
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