Asian economies in transition

Economists and political scientists have long talked about the coming of the Asian age. Home to already more than half of the global population, Asia is well placed to become the centre of the new world. With so much opportunity on the horizon in Asia, there are many key areas that must be refined and further developed so as to make the necessary transition towards global economic dominance. With a focus on developing Asian economies, this study provides details on the important areas of focus for emerging economies in the region. As assessment of the relevant extant literature showed that the areas of international trade, foreign direct investment (FDI), the role of China’s outward FDI in the region, the service sector, green growth, institutional transparency, and socio-cultural change are key catalysts behind the transition. As part of this, the authors also examine a series of relevant policy initiatives that could be implemented which can facilitate positive change and make the transition towards sustainable long-term growth more achievable over the long term. In order to drive developments, key areas of focus lie in a range of areas, the most important of which include (1) establishing a more liberalized trade agenda that focuses on the elimination of unnecessary regulatory burdens and aligns itself with the practices of global institutional bodies such as the World Trade Organization; (2) working constructively with both China and the USA; (3) having a stronger focus on higher valued industries within the service sector, a process that can be done through greater infrastructural investment, improved educational achievement, and more democratic institutions and regulatory environments that encourage FDI and growth in modern service sectors, like ICT; (4) adopting green growth policies that provide the right tax incentives for businesses to make the necessary transition to more sustainable developmental practices.