Asia as the largest continent in the world

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Outline

1. Economic development

2. Industrial policy

3. Major export trend

4. New frontiers of growth

5. The challenges facing policy

6. Socio-economic development in Asia

7. Conclusion

Introduction

From ancient times Asia was the largest continent in the world. In Assyria “asia” was just a word, but the name of the continent, Asia became by virtue of Greek people. Nowadays this part of the world is considering as most developing region and it consists of 46 countries. The whole population in Asia is about 4.2 billion people (which is about 60% of the world population) living in 46 various countries. There are 6 another countries which are partly located in Asia, but belong to another region from economical and political point of view. Asia is the largest continent, and relies on natural resources. Agriculture in Asia is mainly focused on rice and wheat. As statistics shows, Asia includes a lot of historical countries, and nowadays, these countries are considering as main tourism centers in the world. By comparison with other continents, this region is rapidly developing and this fact strongly influence on world economy.

1. Economic development

In terms of economic development, Asian countries are ahead of European countries and North America. In this process, there are leaders, especially China and India, and outsiders, but the latter is gradually catching up with the first, and so a leader in economic development, which seeks to Asian economic, set to become even more noticeable. For example , in the crisis of 2009, when almost all European and North American countries fell down in the sphere of economy, manufacturing production declined, the developing countries of Asia has increased their economy and GDP by 2.9%. This is less than the average of annual growth of 6.8 % which was observed in 2001-2008., but important point is: the crisis has slowed down the growth in processing industries, but has not stopped it.

However, in general, characterized processes and trends of the global industry, have not changed under the impact of the first wave of the global financial crisis, according to some experts, the second wave of the crisis is yet to come. The Asian region in the global industry leader position went to the expense of developing countries in the region and is not going to give up their positions. However, not all Asian countries were and are developing equally rapidly.Currently, Asia shelters nearly two thirds of the world population, including the most populous nations of the world, such Asian countries as China 1.3 billion, India 1.2 billion people, as well as Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam. A number of states are developing in the past two to three decades, at a very fast rate. Apparently, in the future, the main trend of world development industry will increase production in the countries of Asia.

2. Industrial policy

Further, in today's industrial policy protectionism is no longer one of the main components. In those cases where the state still resort to it, it is done in a very limited scale. Over time, the increasing importance attached to information, counseling other services of the state, and its coordinating functions become more important than financial support. The object of industrial policy is a wide range of small and medium-sized businesses, and not just the narrow group of large companies.

The continent continues participating in development leading and perspective spheres, and not hiding purpose to save position of leader. However, conception of industrial policy and methods of its implementation considerably change. Undoubtedly, a number of East Asian countries continued to implement industrial policy. Today, however, it is not the same as yesterday. First of all, it is intertwined with other economic policies that promote competition and encourage private businesses to be more “independent”.

Finally, today, this policy is aimed at addressing a broader range of tasks than stimulating the growth of industries leaders. And most important - industrial policy is increasingly focused on supporting the production of items with high added value and creates new products and technologies.

3. Major export trend

Both in production and in the international trade role of developing countries is constantly growing. The region's rate in world export and manufacturing products increased from 20% in 1992 to 39% in 2009 and continues to grow nowadays. The leaders in this process are the countries of Asia. Exports of manufactured goods on a global scale before the crisis reached a peak in 2008 $ 12.095 trillion, and in the period from 2005 to 2008 it grew faster than the production of industrial value and GDP. Trade liberalization, reducing the cost of transportation of goods in the global value chain is contributing to increase trade volumes, as well as the growth for industrial products, directly in developing countries. This trend is likely to continue in the future, especially in China and other Asian countries.

Despite the fact that the share of developed countries still account for over 60% of high production going for export, developing countries, in general, have also made some progress in this area, increasing technological complexity of their manufactured exports. Their share of the world market is now 35% of world exports of this commodity group.

Even in 1995, leaders in the export of manufactured goods were mainly countries with developed economy - the U.S., Japan, EU countries - Germany, Great Britain, France. At the present time, the group leaders, except China, are India and the Republic of Korea, Taiwan and Singapore.

Very fast growing China has seriously changed the picture of the world market. Exports of the country showed an annual growth of nearly 15% in the period from 1992 to 2001, and almost 28% in the period from 2001 to 2008. China in 1992 was on the 13th place on the industrial exports, and since 2008 has become the world leader ahead of Germany, the U.S. and Japan, and it continues to be. This country is also takes the position of the largest importer, only slightly behind the United States, but ahead of Germany.

Thus, it is no exaggeration to say that the world is on the eve of the "Asian industrial age." As the global industry was a serious regrouping of forces in the allocation of production capacity, and creation of exchange of industrial products. It is particularly well recorded in the Asian vector of global industrial development.

China's and so-called newly industrialized countries are rapidly developing in Asia. But we should not forget the considerable differentiation of the group in terms of socio-economic development, the volume of output, the sector structure of industrial production and the share in the global industry. Rapid economic growth so far only observed in a small group of developing Asian countries, and the rest still are far from economically developed countries and only take the path of industrial progress.

4. New frontiers of growth

At least two important features characterize the current global economic recovery in Asia. First, unlike the previous global downturns, it contributes more to global economic growth than any other region. Second, and in contrast to previous periods, the recovery in many of these countries is due to two factors: exports and strong domestic demand. Strong domestic demand is partly driven by stimulus policy, but sustained private demand has also played a role. Collectively, it appears that in the economy of Asia significant changed and it is strong influencing on world's economy. Asia coming out of the recession, and takes a strong position in the world. However, rapid economic growth in the region will not continue automatically. Based on the solid foundation of its policy, Asian countries will need to continue reforms aimed at addressing the challenges that still face the region, both in the short and longer term. The key policy challenge in many Asian countries is strengthening domestic demand in order to make it more durable economic growth, and reduce dependence on exports. It will also help overcome global imbalances.

5. The challenges facing policy

Many remains are to be done in the framework of globalization and reform programs to engage all nations and all people. In recent decades the economies of Asia has made unprecedented progress in poverty reduction, and China alone brought out of poverty several hundred million people since the beginning of the announcement of its reform in 1978. However , a large proportion of the poor still live in Asia , where 17 percent of the population in East Asia and the Pacific, and 40 percent of the population of South Asia live on less than $ 1.25 a day. Moreover, the financial crisis has slowed the pace of poverty reduction in the region.

6. Socio-economic development in Asia

In recent years there has been great interest in the socio-economic development of the countries of East Asia. The economic success of these countries in the second half of the last century had no parallel in history. Success of Japan, followed by the "four tigers"(Hong Kong, Singapore, South Korea and Taiwan), as well as countries such as Indonesia, Malaysia and Thailand have turned East Asia into one of the main locomotive of global economic growth. Economic achievements paved the way to success in other areas of development, especially in the field of social security. The scope of social policy in East Asia began to attract the attention of the international community since the eighties years of the last century. The apparent advantage in the internal development of the region was social unit, resulting in the rapid economic development, which, in turn, laid a fertile ground for a rational social policy. Along with the achievement of high rates of economic growth, East Asian countries maintained a relatively low level of taxation and government spending. In addition, the countries of the region managed to maintain internal social and political stability. All of this was to ensure social stability, which is the guarantee of sustained economic development. Thus, the priority of economic development and industrialization has led to the need to invest in the social sector, which was to support economic initiatives of the governments of the region. This factor has become the unifying and integrating element of the East Asian model of social policy. Based on these considerations, the following points have been proposed as the general characteristics of social policies in East Asia: the minimum level of government spending, a relatively flexible labor market, the development of the social security point with an eye to certain groups of society. At the beginning of the "economic miracle" in East Asian countries in the region, with the exception of Japan, supported the low wages and taxation in the internal development, and had formed democratic institutions. Despite this, social stability, even during the height of the Asian crisis in 1997 maintains in the region. Since the mid eighties of the last century, the region began to actively develop their social sphere.

Conclusion

It is quite obvious that the voice of Asia has become increasingly influential in the discussion of issues related to the global economy and finance. The Group of 20 leading economic countries already included six countries in the Asia -Pacific region. The countries in Asia accounted for just over 20 per cent of the voting power in the IMF, and their weight will certainly increase as the reform of the IMF, in order to bring the right to vote in the country more in line with their role in the global economy. With the right policies, the economic success of these countries are likely to continue and will lead to further improvements in the living standards of the people of Asia, the changing economic situation of almost half the world's population.

Time of Asia has come. Its role in the global economy continues to grow both in world trade and finance, and in economic management by means of organizations such as the IMF, and it will be even more enhanced. Meanwhile, countries around the world are showing interest in the success of Asia in the areas of development and adaptation to globalization. Countries in the region have accumulated a wealth of experience - experience of countries at different stages of development and facing different challenges. And the broad global economy may benefit from it as many useful lessons.

asia economy export policy

Reference

1) Geopolitics of Asia.

2) Economic situation and development of Asia.

3) Export and Import information of Asian Countries.

4) Industry Policy. Available at.

5) Encyclopedia of Economy of USSR [Accessed on 20^th of October 2013.]

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