Asia in the Global World

In the previous articles of this blog, Amélie and I presented the culture adaptation of several institutions in some countries of the world. Therefore, the subject of this blog will now focus more on France of its efforts to adapt to the global world and the same effect about China for my part. In this way, I will first introduce Asia and the changes some countries knew, and then I will focus a particular attention to China and the role it is playing in the globalization process but in a communist environment.

During the last 20 years, some Asian countries became the fastest growing nations in the world. After the Asian crisis of 1997, many Asian countries decided to change restructure their economies and improve their governance in order to fit better the global economical standards (Chong & Lindstrom). This resulted in changes in the consumption habits and Asia became a major actor of the global world, and by 2030 Asia will become a larger economy than the USA and Europe combined GDP (Online, 2010).  In 2013, the distribution sector turnover in Asia will increase by 6%, and it will increase up to $11,800 billion by 2016. Another example of Asia economy is that 50% of the luxury turnover is made by Asian consumers, thanks to the rise of revenues (Vente, 2013).  Indeed, Asian rapid growth accompanied a reduction of the poverty is the countries of Asia, with 55% less people living with less than $1.25 a day in 2005, but it is still the place with the higher number of people in poverty situation (Online, 2010). Malaysia, Thailand, South Korea, Hong-Kong, Singapore and China, are the countries which are the most important in the Asia economy thanks to their restructuration after the Asian crisis. Asia is today the most dynamic region in the economic world thanks to a policy that stresses on free movement of capital, goods and services within the national boundaries. The result of this politic of development is the improvement of the economical efficiency and the transfer of technologies that fasten production and brings advantages (Chong & Lindstrom).

One of these countries remains unique: China. It is the fastest growing economy of all, and since 1997, its GDP grew every year by 6.7%. China’s rapid economic growth is due to the large-scale capital investment and the rapid productivity growth thanks to economic reforms that the country has put in place since 1989 (Morrison, 2013).

China’s rapid economic growth is due to the large-scale capital investment and the rapid productivity growth thanks to economic reforms that the country has put in place since 1989 (Morrison, 2013). As we can see on the graph below, the country had its GDP growing and fallind following the diverse crisis the global world has known,  which shows that China has now a crucial place in the global economy and it is a major actor of it. However it succeds to minimize the losses during the major crisis thanks to the dependence of the others countris on the Chinese production labour force.

Slowly but surely, China became the 2^nd largest economy in the world ,ant the country attract many kind of businesses and investors from all over the world, in a country which however remains communist. We will now pay a particular attention to the changes it knew, and how this superpower is adapting to the flow of cultural diversity within its borders in order to remain this powerful economy.

Ophélie BOURGEOIS

Sources :

Chong, L. C., & Lindstrom, P. (s.d.). New Developments in Emerging Asia: Business Opportunities in new Markets and Technologies. Récupéré sur http://www.lim.ethz.ch/lehre/fruehjahrssemester/international_management/R1_New_Developments_in_Emerging_Asia.pdf

Morrison, W. M. (2013, September 5). China’s Economic Rise: History, Trends and Challenges. Récupéré sur Congressional Research Service: http://www.fas.org/sgp/crs/row/RL33534.pdf

Online, M. S. (2010, May 12). Asia's Importance Growing in Global Economy. Récupéré sur International Monetary Found: http://www.imf.org/external/pubs/ft/survey/so/2010/CAR051210A.htm

Vente, P. d. (2013, April 11). Distribution : Asie, le nouvel Eldorado. Récupéré sur Points de vente: http://www.pointsdevente.fr/index.php?id=50&no_cache=1&tx_ttnews%5Btt_news%5D=66508