Economic Growth And Economic Development

2287 Words May 3rd, 2016 10 Pages
In Asia, the economic growth has been phenomenal and the deepening of economic integration and larger trade volumes have led to both developed and developing nations to experience steady economic growth, especially at 10.1% in 2007 (ADB, 2015). Nevertheless, especially with China’s economic slowdown, the Asian region is facing problems such as decrease in labor force, labor productivity, and overall trade growth (ADB Report, 2015). In order to consolidate economic integration of the region, the ASEAN Economic Community (AEC) was implemented on December 31, 2015. The AEC is based on four pillars which are the following: a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy (ASEAN Secretariat, 2015). The establishment of the AEC creates opportunities of a huge market worth over USD 2.5 trillion while the region was the seventh largest economy in the world with a population of over 622 million people and the largest market base in the world behind only China and India (ASEAN Secretariat, 2015). Moreover, the ASEAN Economic Community can be viewed as a yardstick of ASEAN’s progress in building a more economically integrated regional organization. The AEC aims to create a single market and production base in achieving freer flow of goods, services, labor, and capital (ASEAN Secretariat, 2015). In doing so, tariff elimination alone cannot create an open market;…
Open Document