The Asian Century:
● Asia is currently undergoing a profound transformation. If it continues on its current path, by 2050, its per capita income could increase six-fold in terms of purchasing power parity (PPP), reaching the levels seen in Europe today.
● This transformation could lift an additional 3 billion Asians into affluence by current global standards. By nearly doubling its share of global gross domestic product (GDP) to 52 percent by 2050, Asia would be poised to regain the dominant economic position it held roughly 300 years ago, before the onset of the industrial revolution.
● The term “the Asian century” signifies the prominent economic and political role that China, India, and their neighboring countries are expected to play in the 21st century.
● This concept gained traction with the rapid economic growth of China and India starting in the 1980s, which propelled both nations into the ranks of the world’s largest economies.
● Throughout much of human history, Asia was a significant driver of the global economy. However, during the 19th century, Western economies took the lead, driven by the Industrial Revolution.
● In recent decades, the expectation that Asia will once again become the engine of global economic growth has been gaining momentum.
● Many experts argue that the 19th century belonged to the United Kingdom, and the 20th century was dominated by the United States.
● Now, economists are speculating that the 21st century is poised to become the “Asian Century.”
A dressing Multiple Risks and Challenges:
There are several critical challenges and risks that must be managed as Asia continues its
transformation:
● Increasing Inequality: Within-country inequality could erode social cohesion and stability. Some countries face the risk of becoming trapped in the “Middle Income Trap” due to various domestic economic, social, and political factors.
● Competition for Resources: There is intense competition for finite natural resources, as a growing number of affluent Asians aspire to higher living standards. Rising income disparities among countries could also destabilize the region.
● Climate Change: Global warming and climate change pose a significant threat, potentially affecting agricultural production, coastal populations, and many major urban areas.
● Governance and Institutional Capacity: Poor governance and weak institutional capacity are challenges faced by nearly all countries in the region. Navigating these challenges will be essential for Asia to realize its potential and successfully transition into the Asian Century.
Global Agenda:
● The growth of Asia and its expanding footprint in the global economy will bring forth new challenges, responsibilities, and obligations.
● The region must assume greater responsibility for global common resources. It should transition from being a passive observer in global rule-making discussions and a reluctant follower of rules to an active participant and a constructive rule-maker.
● As an emerging global leader, Asia should act as, and be recognized as, a responsible
global citizen. When shaping its domestic or regional policy agenda, Asia must consider the regional and global ramifications.
● Asia should manage its rising role in global governance with diplomacy and constructive
engagement, rather than assertively.
● As Asia becomes the epicenter of the global economy, it is in its own interest for the restof the world to also prosper economically and politically. Peace and security worldwide are crucial for Asia’s long-term prosperity.
● The Asian Century should not benefit Asia alone but should be a century of shared
global prosperity.
Required Measures:
● Infrastructure Improvement: Investments are required to enhance the logistical support for manufacturing.
● R&D Incentives: Encouraging future investments in research and development is crucial.
● Innovation Hubs: The development of large-scale innovation hubs is necessary to
advance manufacturing and seize opportunities in demand.
● Attracting Investments: While India is starting to attract investments from Asian firms, more efforts are needed to tap into the potential of investment flows from other countries.
Conclusion:
The Asian Century is already underway, and as globalization gives way to regionalism, Asia takes a prominent role. India can explore numerous opportunities arising from the region’s rapid integration and evolving networks and flows to drive its next phase of growth.
