Research Paper: Asian Resources and Economic

Pages: 16 (4982 words)  ·  Bibliography Sources: 16  ·  Level: College Senior  ·  Topic: History - Asian  ·  Buy This Paper

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[. . .] State involvement in commercial transactions thus has little to do with contributing to the creation of sustainable economic growth. In fact, several commercial transactions have merely worked to sustain the 'shadow state', ensuring that income generation is not tied to economic development but to securing regime survival (NATO, 2009).

India:

Although United States has been acting as the sole power governing the economic scenery of the world. However, past two decades have shown few major changes. The burden of world economy is now on the shoulders of under dogs like China and India whereas U.S. And Europe are struggling hard to retain their old positions. Economists globally are predicting these Asian countries to be the leading global economic powers in near future. The World Bank says India will become the third largest economy after China and the U.S. By 2025 (Dutta, 2011).

As per Managing Director of World Bank, "tremendous progress in recent years and emphasized the need for sustaining the growth in high-value sectors along with strides in the healthcare and education sectors. (Dutta)"

Similarly, in "Three Billion New Capitalists? The Great Shift of Wealth and Power to the East, it is mentioned

"by 2030, India will overtake Japan in absolute dollar terms, not PPP, and in the second half of this century will be the largest economy. The really long-term miracle in India will come about because of demographics. China's one-child policy will ultimately result in a reduced, and ageing, workforce."

Also, India's status of the world's second fastest growing country will ultimately give it political benefit globally. Although, it still has a status of developing country, but its fast-paced, strong development will serve it in the long run. This is the reason why many countries including U.S. are strengthening their relationships with India.

As per the annual report of CIA published in 2006, "The economy of India is currently the world's fourth largest in terms of real GDP (PPP) after the U.S.A., the People's Republic of China and Japan, and the second fastest growing major economy in the world, averaging at an annual growth rate of above 8%. Its record growth was in the third quarter of 2003, when it grew higher than any other emerging economy at 10.4%."

Despite its natural resources and ideal geographic conditions, its access to cheap labor and impeccable advancement in Information technology, makes it a key player at global forum. Although, the annual revenues of India are still small figures as compared to U.S. And Uk; however its exponential growth is its strongest edge.

As per the report of Foreign Office of United States in 2005,

"Within Asia the declining global share of Japan since 1990 has been more than made up by the rising share of China and India. Between 1975 and 2002, Japan's share of world GDP fell by 1 percentage point while that of South Korea, ASEAN, India and China rose by 1 percentage point, 1.2 percentage points, 2.2 percentage points and 9.2 percentage points, respectively. As the share of the U.S. In world GDP falls (from 21 per cent to 18 per cent) and that of India rises (from 6 per cent to 11 per cent in 2025) making India the third largest economy by 2025. By 2025 the Indian economy is projected to be about 60 per cent the size of the U.S. economy. This transformation into a tri-polar economy will be complete by 2035, with the Indian economy only a little smaller than the U.S. economy but larger than that of Western Europe."

These projections are wells supported by projections of FBI which indicates China to become the supreme power by 2050, and also considers India as a potential candidate for this position, mainly because of its development which is growing by leaps and bounds.

As per Prestowitz, India has a strong demographic structure, where half of Indian population is still in their teen years, China is expected to run out of young and energetic workforce in 10-15 years. Thus, India may leave China far behind in the latter half of the century and may appear as world's biggest economy. Prestowitz further says in his book, "I know there's still something of a socialist hangover in India but it's very much a capitalist economy, one which is driven by entrepreneurs rather than government fiat, which is still very much the case in China."

Japan:

Japan's industrialized, free-market economy is the third-largest in the world. Its economy is highly efficient and competitive in areas linked to international trade, but productivity is far lower in protected areas such as agriculture, distribution, and services. Japan's reservoir of industrial leadership and technicians, well-educated and industrious workforce, high savings and investment rates, and intensive promotion of industrial development and foreign trade produced a mature industrial economy. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy. Japan is famous for its dual foreign policy. Where one is for West and the other is for its neighbors. Japan has been often criticized for spending its hard earned revenues on building its military strength. It is rather interesting to observe how Japan's foreign policy varies for U.S. And Asian countries (BEAPA, 2012).

Ming Wan in his book argues that, on the one hand, Japan has used cooperative spending to alleviate U.S. criticism and to protect its security environment. In Asia, on the other hand, Japan has used cooperative spending to alleviate historical distrust and to facilitate economic exchange. Balancing between East Asia and the United States has not been easy, however. The two tracks sometimes come into conflict, either when U.S. interests conflict with those of an East Asian state (most notably China), or when Japanese policy towards one party is perceived as uncooperative by the other. Japan's increasing wealth has also been a source of trouble in its relations with the United States, making these increasingly competitive. Interestingly, the same applies to Japan's relations with East Asia. These countries have become more competitive as the region has started to catch up with Japan, while Japanese policy has also become less cooperative in recent years.

China and India have gained their current status by focusing on their soverignity and self-sufficiency, Japan on the other hand hasn't utilized its economic power as yet. Also, it has put in more efforts in strengthening relations with U.S. rather than growing its own power. It appears that Japan wants to acquire a high status in Western countries which lead him to come up with friendly substitutes the West as its own expense. Its obsession with high GNP figures and technology shows its potential and desire for being world's leading power.

While all the attention of the world is towards China and India, Japan is growing exponentially with its economy twice as large as U.S. alone. Quite similar to other Asian countries, access to cheap labor and raw material supported by strong financial status which helps it enjoy the economies of scale, makes it the third largest growing economy.

While China gets all the attention, Japan, still firmly ensconced in second place among the world's economic powers, is quietly enjoying its longest period of sustained growth since World War II. Japan's global brands have never been stronger: Toyota surpassed General Motors in car and truck sales for the first quarter of 2007, knocking it out of the world's top spot for the first time in 76 years; patent royalties deriving from Japanese inventiveness hit $4.2 billion in 2006. Sony and Canon, Honda and Panasonic, Fujitsu and Hitachi: throughout the world, Japanese brands are respected and profitable. By contrast, despite the best efforts of personal-computer giant Lenovo and white-goods producer Haier, China has yet to build a single brand that most Americans could name (Callick, 2007).

As of now, the biggest challenge faced by Japan is decrease in its workforce and aging employees. Rich with other resources required, Japan lacks in manpower. And, it isn't alone in facing this difficulty; in fact China is also facing the same trouble because of its prevalence of one child policy for two long. Japanese population fell in 2006 for the first time since World War II and -- excluding the war years -- for the first time since the country began collecting data in 1899. The government says Japan, like other nations, needs a birth rate of 2.1 per woman to maintain the current population; in 2005, however, the rate fell to a record low of 1.25. Japan is not alone in confronting demographic decline: China, which also effectively excludes immigration, except by ethnic Chinese, is facing a more dramatic challenge after Mao's call to "populate or perish" was replaced in 1979 by a one-child-per-couple policy (Callick, 2007).

ASEAN Countries:

In past two decades, where EU and U.S. have shown decline in their growth, China, India and Japan have appeared… [END OF PREVIEW]

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Asian Resources and Economic.  (2012, May 3).  Retrieved March 24, 2019, from https://www.essaytown.com/subjects/paper/asian-resources-economic/5233691

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"Asian Resources and Economic."  Essaytown.com.  May 3, 2012.  Accessed March 24, 2019.
https://www.essaytown.com/subjects/paper/asian-resources-economic/5233691.