Asians’ astounding impact on the global economy
If the 19th century belonged to Europe, the 20th century belonged to the United States, then the 21st century now belongs to Asia.
Asia is now the home of more than 50% of the world population where over 35–40% of the global economy has centered on the Asian realm. Despite a lot of Asian countries have known for corruptions, poverty, low-quality exports, and non-civilized, but the fact that things have changed drastically over this decade. The Asians have integrated themselves in terms of culture and developed a profound network of infrastructure and technology surprisingly quietly.
In the past, Asian countries were divided by colonial powers of the Europeans and by the Cold War. The vast invades between one country and the other have also developed a great sense of rivalry over decades (China, Taiwan, Japan, Vietnam, Pakatism, Mongolia, Russia, etc). After the 1990s the age of colonialism had ended and most countries have retained their right of control over certain cities.
Since then we have been paying attention to a lot of things, maintaining democracy — globalization — the rise of E-commerce — financial crisis — the advent of technologies, etc. Asians country has been very steadily, diligently integrating themselves.
One Belt One Road
The 4000 miles (6437km) Silk Road has made a phenomenal impact on the Asian country, specifically China. It connects Southern-Asian (China) to Eastern Europe (Mediterranean Sea) and generated trade and commerce opportunities between empires. It marked the advent of globalization and shadowed the ‘One Belt, One Road’ initiatives in China.
The One Belt One Road initiative is a foreign policy and economic strategy of China. The goal of the initiative is to coordinate development policy and enhance financial cooperation through forging infrastructure and facilities networks. Which led to over 20 trade agreements that are built within the Asian countries, additional billions of foreign investments and a gigantic growth in cross-border liquidity.
A lot of developing countries have benefited within the initiative by receiving funds to develop a better infrastructure system which would attract more foreign investors to do businesses in these countries. Nonetheless, the relationship with other Asians maintained within the Belt Road network is priceless and this would also lead to friendlier international relationships.
This also provides China with a political hold over land and the maritime routes across Europe and Asia, it also sustains China’s leading trading competitiveness.
In the future, China would be able to issue soft powers over the partnering countries and manipulate the largest labor forces in the world (China, India and the ASEAN)
There are currently 6 economic corridors and 2 financial initiatives:
1. China-Pakistan Economic Corridor
2. Bangladesh-China-India-Myanmar Economic Corridor
3. The New Eurasia Land Bridge Economic Corridor
4. The China-Mongolia-Russia Economic Corridor
5. China-Central Asia-West Asia Economic Corridor
6. China-Indochina Peninsula Economic Corridor
1. Asian Infrastructure Investment Bank
2. Silk Road Fund
With the One Road One Belt Initiative, the Asians countries have developed intimate trade relations and cultural exchange potentials. Their principal of “Stretch at all cost” has really taken over the “Grow at all cost” principal from the United States.
In contrast to the Western empire, the United States has taken the lead of being globalized in the 1900s by proposing the NAFTA with the giants in North America. Instead, look back into a few decades ago, The United States has imposed tariffs towards almost every country in the world and projected an impression of being ‘anti-trade, inward-looking, slow-growth’.
The outflow of the Asian population has also impacted the Asian economy, the average IQ of Asians have excelled the Americans and Europeans because most Asians have taught to be hard-working. It is because most Asians couldn’t afford an education to get out of poverty in the past during war times and nowadays parents have passed on this thought through generations. The norm where most Americans/British school has the most Asians as international students can also be explained this way.
The image of collectivism has not changed too much over the years but it does necessary hinder economic growth, instead, it built a phenomenal social impact at foreign countries. The advent of Chinatown, Viet festival, All-you-can-eat sushi restaurants are all examples of Asians cultures that have brought enormous impact on the Western community. In addition, the spending habit of Asians differs from the others where they are more likely to spend money on their own country’s businesses than the others, there is also a Chinese saying that ‘90% of our spendings ends up at a Chinese seller/manufacturer’.
When it comes to the political system, Asians countries have embraced the goodness of democracy and speaking in terms of the corruption image we had in the past, nowadays executive branches and authorities in Asia actually do enjoy a moderate-high degree of the public trust because of the democratic systems that might be unheard from the others. Even in countries such as India, Indonesia, and the Philippines have over 1.8 billion people who will be participating in elections this year. In China, labels such as corruption and communist are no longer applicable because China now is one of the most capitalized economies and has the best political executions than everyone else.
The culture within Asia countries is rooted within the deep historical background and it tends to be unchangeable, but they did a great job to demonstrate as being collectivistic, they were still able to develop innovations, even better than the Americans.
Asian countries are in that perfect position now, their competitiveness has aligned or excelled the Americans in global capital markets, geopolitical stability, infrastructure investment.
In the future, I am looking forward to seeing more dominance within the Asians giants and it would be interesting to see whether the Asians countries would feel comfortable or obligated living under the China shadow.
If you have a different perspective towards the article or if you want to know more about certain topics I have mentioned above? Feel free to contact me (email@example.com)! Thanks