In the 1960s, Asia was ranked the poorest continent despite its large population. Most countries were Sceptical about their economic growth prospects as there were poor social indicators of development and low-income levels. The tune changed a half-century later, and the region started experiencing both political and economic transformations. The political changes and the high population turned the continent into a place of interest for investors, making it a world’s manufacturing hub. According to UN data in 2016, Asia accounted for 30% of world income, 40% of the manufacturing, and the income per capita neared the world average. This article is an explanation of how Asia changed from the bottom in a few decades.
GDP Per Capita Growth
One of the significant contributors to the rapid growth was the increase in individual investments and savings together with improved education among the population. All these features lead to industrialisation for the production of export products as well as for the local market. Government intervention in implementing the coordinated economic policies was also paramount.
More employment and business opportunities lead to rising per capita incomes, hence, improving the social aspect of developments like literacy rates and life expectancy. The substantial economic impact of industrialisation in china economy growth, South Korea economy growth and Japan economy growth was also visible in the massive reduction of absolute poverty in the region.
The only challenge is that this growth, both socially and economically, could not be even among the population and between countries. Differences in aspects such as availability of natural resources, income levels and population size resulted in different development outcomes. Every country had its ideologies about the perfect path to development.
The adoption of economic openness was also very critical in Asian economic growth and development. The countries chose integration to the world’s economy, rather than a passive approach. Asian governments played a vital role in acting as a development catalyst during this transformation period. It was the role of the governments to support the relationship between the region’s states and markets in a bid to create a local market. For example, the South Korea economy gained a lot from the coordination with Taiwan and Singapore in the major sector’s policies to pursue their development agenda. China later gained a lot after applying the same approach used by these states, and Vietnam then followed by adopting a one-party communist government.
Not every country in Asia could emulate the three countries, so the other states also came up with institutional arrangements that were conducive for industrialisation and development. Some countries focused on private policies, while others concentrate on making governments more development focused and supportive.
Asia’s economic growth has contributed significantly to the move towards the balance of economic power, plus it has also neutralised the political dominance of the west. The continent is expected to continue having a positive economic growth even in the next decade as it still has developing economies.
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