In the early decades of the twentieth century, much of Asia was still called di East - a region remote from its European colonial masters and the USA.
It pm the West with raw materials and in exchange received small quanti
manufactured goods.
Trading houses established in the nineteenth century flouri enterprising industrialists set up factories in Japan, China and other countries; othe the Far East remained on the edge of the world economy.
Japan became an industrial country in the 1920s and 1930s, exporting n quantities of cheap watches and textiles to the West. By 1941 it felt strong enou attack the world's most powerful nation, the USA.
Japan was an exception ii region: China, once a leader in many technologies, was in a shambles, and mo Asian countries had been exploited rather than developed by the colonial powers.
After the war, Japan had to rebuild its shattered manufacturing base.
I communists had taken over Shanghai, driving out entrepreneurs to Taiwan and I Kong. Korea, with an average income lower than Sudan's, was split in two al devastating war. Manila, Rangoon and Saigon, however, flourished, promising a era in Asia.
Much has changed since then:
Japan has become a highly developed country, challenging US leadership in a number of industries. The newly industrialized economies (NIEs) of South Korea, Taiwan, Hong Kong and Singapore are among the most successful economies in the world; with sustained growth rates of 7-8%, their gross national product (GNP) doubled each decade. Today, they are the only developing economies likely to catch up with industrialized Europe and North America in terms of technology, infrastructure and per capita income.
ASEAN member countries Indonesia, Thailand and Malaysia also showed a consistently good economic performance. By improving their infrastructure and building up substantial manufacturing sectors, they reduced their dependency on raw materials and agriculture. People in these countries, as well as in the Philippines, today enjoy much better standards of living than those in the overwhelming majority of Third World nations. Vietnam, which recently joined the ASEAN group, shows equally strong growth.
In the late 1970s China opened its borders to foreign technology, trade and investment.
As pragmatism increasingly overruled ideology, it became the fastest growing economy in the region (it did admittedly start from a very low base, like Vietnam).
Economists, journalists and business professionals widely use the term Pacific', though which countries they refer to is often unclear. Japan, the NIEs. the ASEAN members (ASEAN 5. and China are what we call Asia Pacific. This tel widely accepted - even if implyrng that Singapore lies on the shores of the Pacific stretches geographic credibility.
The division of Asia Pacific into four groups (Japan, the NlEs, the ASEAN 5 and China) reflects economic development patterns rather than political affiliations. singapore - an ASEAN member but whose development followed more closely the model of newly industrialized countries - we place in the same subgroup as South Korea, Taiwan and Hong Kong.
Economic and political systems in Asia Pacific are by no means homogeneous. officially at least, the Chinese economy still follows socialist principles, while Hong Kong and others are a capitalist's paradise. Macroeconomic data also vary widely.
In 1995 Indonesia had 190 million people with per capita income of US$980; neighbouring Singapore had a population of less than three million with an average income of US$26,730. Japan, with 16% of the world's economy, has only 2.3% of the world's people while China, with more than a fifth of the world's population, contributed a mere 2.3% to world economy.
Despite these huge variations, a number of common characteristics can be found:
Asia Pacific countries all aim at improving economic well being through individual efforts. They share a high degree of entrepreneurship, a determination to progress, high savings rates and substantial private investment in assets and in education.
They are led by business-minded, outward-looking governments that support wealth creation through moderate intervention and policies orientated towards economic growth.
These countries are consensus-orientated: efforts and results are shared within the nation, the local community, the firm or the family; income distribution is relatively even.
A rather vague feeling of 'Asianness' - best described as being neither Caucasian nor African nor Latin American - is emerging, encouraged by regional media and growing contacts among communities.
The economies of Australia and New Zealand, while deeply intertwined with Asia Pacific, are not Asian in culture and don't have the same growth momentum. India is not part of Asia Pacific either, because of geographical distance, and a lack of economic and political ties. India, which opened up to the outside world only recently, has shown little interest in closer involvement with Asia Pacific.
Western firms and economists find it difficult to determine which countries to include in the region. Some follow our rather narrow definition; others include Australia and New Zealand. Alternatively, they use the much broader term of 'Asia'. But what is Asia? If it begins in Turkey and ends with New Zealand to the south and Japan, or even Siberia, to the north, it is not a very useful concept from a business perspective.
This article deals mainly with Asia Pacific - only a part, though by far the most dynamic, of Asia. With 1,700 million people, it is home to 31% of the world's population. Asia Pacific reaches from the cold deserts of northem China to the tropical belt of the ASEAN countries; it is so spread Out that a direct flight from Singapore to Tokyo takes more than seven hours. Indonesia alone extends over an area wider than the distance from Paris to New York. As the millennium nears its end, however, Asia Pacific accounts for 25% of the world's output. This figure is due to increase, but not overnight.
The Asia Pacific region : The Strategic Importance of Asia Pacific article from Strategy Management Catagory The Asia Pacific region
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