Asia’s-remarkable-economic-iastoppers
Editorial Notes

[Editorial Notes] Asia’s remarkable economic transformation

The Rise of Asia is indicative of shift in balance of economic power from West to East. By 2050, Asia will account for more than a half of the world income and be home to half of the people on earth.
By IASToppers
October 29, 2019

Contents

  • Introduction
  • Key Data
  • What were the causes of this transformation?
  • Issues and Challenges
  • Conclusion
  • Key facts

Asia’s remarkable economic transformation

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Introduction:

The Rise of Asia is indicative of shift in balance of economic power from West to East. By 2050, Asia will account for more than a half of the world income and be home to half of the people on earth.

Asias-remarkable-economic-transformation

Key Data

Development outcomes differed across space and over time

Asia`s Share in World Income

Year

Share

1962

15%

2016

30%

 

Asia`s Share in World Manufacturing

Year

Share

1962

15%

2016

40%

 

What were the causes of this transformation?

  • Government played a crucial role in transformation of Asia.
  • Both Government and markets complemented with each other in their respective roles.
  • Singapore and South Korea used carrot and stick approach for development. While China and Vietnam with single party rule ensured political stability, which indirectly helped in pursuing developmental plans
  • Economic openness and industrial policy led to successful industrialization of Asia. Countries which adapted to changing times based on efficient feedback loops and learning ensured development for the future.
  • Rising investments and savings rate along with impressive GDP and GDP per capita. Basically, rapid investment growth coincided with rapid export growth leading to rapid GDP growth.
  • Rapid industrialization and export led growth.
  • Coordination of economic policies across sectors and time.

Issues and Challenges

  • Outcomes and transformation were unequal across countries and between people.
  • Some countries like India and Bangladesh developed economically but not socially. East Asian Countries like South Korea and Japan transformed rapidly in just 50 years.
  • Inequality among people of a country and between people of various countries is rising in Asia.
  • But in some countries where Governments and markets could not perform continued to be laggards.
  • Asian countries will emerge as world powers without the income levels of rich countries

Conclusion:

Asia with its huge population and growing economic clout can be the growth engine of the world. But there is a need to ensure this development is equitable, financially and environmentally sustainable to make sure the Asian century prevails for the long term.

Key facts:

Gunnar Myrdal, published Asian Drama in 1968, was deeply pessimistic about the Asia`s development prospects.

 

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Editorial Notes Mains 2020
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