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Economically, East Asia is the fastest growing region in the world. Over the last two decades we have seen average annual growth rates of seven per cent, compared with five per cent growth in the rest of the world. The regional share of global exports has risen from 15 per cent in the 1980s to 28 per cent in 2004 (the regional share of global imports was 23 per cent), while East Asia’s share of inbound foreign direct investment has grown from seven per cent in 1980 to over 17 per cent in 2003.
Japan, China and India feature among the world’s 10 largest economies, based on World Bank rankings. Many predict that China and India will continue to advance at a rapid pace, helping Asia to increase its contributions to the world economy from 35 per cent in 2005 to perhaps 43 per cent in 2020. This would narrow – but not close – the gap in wealth between Asia and North America and the European Union.
The UN Development Programme’s Human Development Index (HDI), which includes factors such as life expectancy, education and wealth, demonstrates the advances made by Asia. In fewer than 60 years, much of the region has ceased accepting development assistance. Several now have their own assistance programmes. Japan is among the world’s largest donors.
For Asia’s medium and smaller-sized countries, the pressures of economic competition in this dynamic neighbourhood are growing, particularly as China and India have advanced rapidly in skills development and manufacturing. But rising levels of demand for commodities and the use of global and regional opportunities to share information, technologies and skills are creating new flows of business.
...Most countries see greater integration as the key to protecting and advancing their interests in the region and more widely...
The re-emergence of China, coupled with India’s ascending status, has resulted in Asian countries finding new ways to engage with each other. Most countries see greater integration as the key to protecting and advancing their interests in the region and more widely. This is reflected in the emergence of new regional groupings, such as the establishment of the East Asia Summit.
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