Great Asian economic transformation and restoration

Comments on Kaliappa Kalirajan “Now for an Indian ‘miracle’”, 13/06/2009, http://www.eastasiaforum.org/2009/06/13/now-for-an-indian-miracle/

If we take a long historical view of human beings’ history and see the dynamic economic growth and transformation in Asia over the past decades in that light, starting with Japan, then followed by the four NIEs, the other East Asia tigers, China and India now, it is likely that over the next few decades we will see an Asian economic restoration. Asia is finally catching up with Europe and North America, following the latter’s remarkable economic advances since the industry revolution.

Let's hope that Asians will consolidate their economic progress over the past decades and continue to advance their economic fairs in the coming decades.

While in the past exports from Asia to other regions have played an important role in assisting Asia's transformation, the future is likely to see more reliance on intra-regional trade and domestic absorption, as the size of the Asian economies continue to grow. This is particularly so, given that the US will need to live within its means, that means to save more and consume less as a proportion of income.

Kalirajan's observation of the structural change in India's economy is especially interesting in light of this.

A closer economic integration of Asian economies especially those more advanced and those more dynamic ones, will provide further scope for growth and benefit not only Asian economies, but also economies in other regions. Intellectual thinking and policy frameworks within the region should more ahead and provide guidance to Asia’s economic transformation at such a scale. Institutional development might be beneficial to the process of transformation.