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The Current Growth Of Asia

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Introduction
The current growth of Asia has been remarkable especially post the 1997 crisis, the purpose of this assignment though is to understand whether the current strategy of Asia would witness the same growth in the coming years or not and whether by 2050 it would be responsible for more than half of Global GDP.
The first part of the assignment highlights the transformations that were undertaken by the East Asian countries in order to deal with the post crisis consequences. It explains the changes that were made by the state in terms of legal and regulatory changes, followed by the changes that the businesses had to face in terms of the evolving ownership patterns. The last two aspects that are covered include the labor changes and
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the conclusion summarizes the assignment and also explains why I personally disagree with the statement given to us to further examine.

Structural Transformations
In the 1950’s when most of the countries were in a conflict of choosing between a capitalist or a socialist system, East Asia opted to go for the capitalist system and were hence able to witness growth in the coming years. In 1980’s most of the East Asia enjoyed great investment rates and a higher amount of savings as compared to the other countries (Moreno, 2015). After having witnessed continuous growth the mid 1990’s period came as shock to everyone, the currency had started to devaluate which further lead to reduction in export prices and hence slowing the economic growth. The crisis had first started from Thailand where the foreign exchange market had crashed and Thai baht had pegged down, starting from Thailand the crisis went on to hit other countries like Malaysia, Indonesia and Philippines with the stock market of each country collapsing (Moreno, 2015). It had become evident that the benefits of the capitalist system had faded and investors had started regretting their decision of investing large sums of money in the East Asian market. However within a short of span of time the crisis had ended and by the end of 1999, most of the Asian countries had come back on track and had started witness growth again. This was possible primarily by structural changes which are discussed below in detail.
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