Sansad TV: Asian Century | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Asian Century

Asia is at the epicenter of an extraordinary metamorphosis. Should it maintain its current trajectory, by 2050, its per capita income, when assessed in purchasing power parity (PPP) terms, may experience a sixfold increase, elevating it to levels comparable to Europe today. This ascent could render an additional 3 billion Asians affluent by contemporary standards, propelling Asia to nearly double its share of the global gross domestic product (GDP) to 52 percent by 2050. This resurgence would harken back to the dominant economic position Asia held three centuries ago, prior to the industrial revolution.

The Concept and Its Momentum

The term "the Asian century" encapsulates the anticipated economic and political dominance that China, India, and their neighboring nations are expected to wield in the 21st century. This concept gained prominence following the rapid economic growth of China and India in the 1980s, catapulting both countries into the ranks of the world's largest economies. While Western economies dominated during the 19th century, powered by the Industrial Revolution, the expectation that Asia will regain its role as the global economic engine has gained traction in recent decades. Some economists speculate that the 21st century is poised to become the "Asian Century."

Navigating Multiple Risks and Challenges

Asia's resurgence carries an array of risks and challenges, including:

• Growing inequality within countries, posing a threat to social cohesion and stability.
• The risk of falling into the "Middle Income Trap" for certain countries, driven by a myriad of domestic economic, social, and political factors.
• Fierce competition for finite natural resources as a burgeoning middle class aspires to higher living standards.
• Escalating income disparities across countries, which could destabilize the region.
• The looming specter of global warming and climate change, with potential consequences for agriculture, coastal populations, and major urban centers.
• The pervasive issues of poor governance and weak institutional capacity faced by many nations.

A New Global Agenda for Asia

As Asia's economic growth and global influence expand, the region must embrace new responsibilities and obligations. It is imperative that Asia takes an active role in shaping global governance:

• Greater ownership of the global commons and a transformation from passive onlooker to active participant in global rule-making.
• Asia should be recognized as a responsible global citizen and consider regional and global implications when formulating policies.
• The region should manage its rising global role in a non-assertive yet constructive manner.
• The prosperity of the entire world is vital for Asia's long-term success, necessitating a commitment to peace and security globally.

Shared Global Prosperity in the Asian Century

• Infrastructure improvement: Investments in infrastructure are essential to bolster the logistical framework that underpins manufacturing.
• Research and development (R&D): Incentives must be put in place to encourage future investments in R&D.
• Innovation: The creation of large-scale innovation hubs is necessary to transition manufacturing to the next phase and seize the demand opportunity.
• Attracting investments: While India is beginning to attract investments from firms across Asia, more must be done to unlock the full potential of investment flows from other countries.

Conclusion: The Unfolding Asian Century

The Asian Century is well underway, as the world shifts from globalization to regionalism, with Asia taking a prominent role. India, in particular, has the opportunity to leverage the emerging dynamics, integration, and shifting networks and flows in the region to propel its next chapter of growth.