Article Summary
The article under analysis called From the Asian Miracle to an Asian Century? Economic Transformation in the 2000s and Prospects for the 2010s is dedicated to assessing the shifts in the Asian economies, as well as factors contributing to those shifts.
Specific emphasis has been placed on highlighting the reasons of economic recession in Asian district that might lead to the global economic crisis.
More importantly, the researchers also argue that Asia may become the main cause for global inflation due to the advanced focus on Asia’s export operations.
To shed light on the roots of the problem, the authors start examining the preconditions of economic pressures presented in the report.
Despite the fact that the report focuses on the successful relationship between economic progress and public policy, it still provides evidence to the lack of sustainability in the Asian growth due to the constant increase in inputs and absence of productivity improvement.
The emerged inconsistence led to the recession during 1997-1998 financial crisis resulting in the depreciation of currencies, as well as decline in investments and financial markets.
Apart from these circumstances, pulling foreign capital from the region was the most serious reason for the Asian financial crisis.
Further in the article, the scholars pay attention to the importance of India and China for improving economic situation in the entire Asian region. In particular, recent financial crisis has fostered the shift of economic activities toward Asia, which led to the reinforcement of Asian countries.
Despite the negative economic experience in Asian region, the author predicts that China will have taken an advantage over the U. S. economy by 2016 and will have become the world’s most powerful economy.
Other representatives of Asian region are also likely to reach the level of economic growth in Europe and North American regions as far as global production share is concerned. By 2050, Asian could capture more than half of the entire economy.
The predictions represented in the article are confirmed by figures and calculations stipulating the change that will follow the economic progress in Asian countries. Apart from success, the economies can also face serious challenges due to the three fundamental changes.
To begin with, the economic importance of the region is largely predetermined by integration of global supply chains and recognition of the Asian economies as important commodity consumers.
Further, emergence of significant current account surpluses, foci of enormous foreign exchange reserves and gigantic capital exports are also among the potential triggers of economic progress.
Finally, free trade agreements have significantly promoted regional cooperation despite little progress marked in the sector.
In order to understand how changes influence the overall economic situation in the world, the authors present the analysis of dominant commodity consumers and integrated supply chains.
To illustrate the acceleration trends, the researchers introduce a figure depicting GDP growth in such Asian regions as China, India, Asian district, and the entire world. The numerical data reveals significant shifts in division of labor in Chinese region.
The main reasons for such change lie in moving final production stage to China and producing more important components to the rest of Asian countries. The distribution of production patterns has had a significant impact on the development of strong supply chain stories with China at the centre of the production process.
Under these circumstances, the Asian region has been decoupled from the U.S. economy.
Further analysis of the economic activities proceeds with the evaluation of external surpluses and capital exporters. Under this section, the researchers shed lights on three basic reasons for the Asian financial crisis.
First of all, the Asian region borrowed large financial resources from the world’s capital market before the economic recession. Second, large investments, as well as corrupted schemes taking place in Korea and Thailand, provide a solid ground for economic problems.
Another reason for economic instability lies in the presence of current account deficits causing currency depreciation. Finally, insufficient foreign reserves were not enough protect the currency in Asia.
Apart from currency trends, the article enlarges on the consequences of macro-economic and financial cooperation as the predecessors of financial crisis. Economic liberalization in the district was followed by unilateral reform which neglected the needs of separate countries.
Despite the significant increase in performance, there were other factors contributing to instability. This is of particular concern to greater integration in the Asian region leading to rigorous competition among economies. Moreover, separate countries were not strong enough resist the economic change.
At the end of the research, the authors define future implications for ensuring sustainability in the Asian region.
Despite the fact that some of the Asian economies, particularly China and Japan experience a steady economic growth, the prosperity largely depends on the consistency of future reforms that would rebalance the economic operations and ensure sustainable growth.
In addition, the scholars pay attention to regional integration that would strike the balance between Asian economic and the rest of the world’s economies.
Article Evaluation
The article under consideration has a well-structured content and consistent interpretation of ideas. In particular, all aspects of economic shifts occurred to the region were sufficiently discussed in the body of the paper.
The researchers have managed to introduce several sections highlighting a specific question relating to the problem. In such a way, the authors manage to draw the connections between financial advances in the most developed economies in Asia and the global economic recession.
There title of the paper, however, is a bit ambiguous because it does not provide account on the economic challenges in Asian region. The article predominantly relies on evaluation of the pitfalls of economic growth, as well as global financial crisis.
What is more important is that the title fails to render the importance of significant economic progress in such countries as China and India.
The abstract of the paper provides a full and consistent interpretation of the information represented in the body of the article. Despite the fact that all the facts are represented in a clear and succinct way, the abstract does not adhere to the accepted structure and correct form.
In particular, such aspects as the purpose of the paper, the main aspects that should be discussed, limitation to the problems, and implications for future research are not expanded sufficiently. Moreover, there is no explanation about the major changes occurred to such large economies ad China and India.
The introductory part of the article is well disclosed because it refers to the concept of The East Asian Miracle report. According to this report, significant increase in input has become the main reason for economic prosperity in Asian region. However, such a policy does not ensure long-term success.
To define the problem in detail, the authors successfully refer to the historical and political preconditions and make right connection with the economic and market activities at the international market.
There are many numerical and statistic data in the article, which contributes to the validity and reliability of the content. In particular, the scholars introduce various trends in development of different countries.
Most of figures and tables represented in the paper are connected with financial and currency issues. In addition, there are specific tables illustrating close cooperation and dependence among Asian countries.
The phenomenon called Asia’s “FTA Noodle Bowl Syndrome” demonstrates complex economic and business interactions among the leading countries in Asian district. However, some figures and data can hardly relate to the theme of transformation and economic regress in the region and the rest of the world.
There is also concern with the sustainability analysis section because it can be hardly connected with the problems discussed in previous sections. Specific attention is given to the link between the challenges highlighted in problem assessment sections and sustainability section.
More importantly, both sections do not define the actual reference made to the phenomenon of Asian miracle, except for the report mentioned in the introductory part.
As per pertinence and focus on information, the author has succeeded in representing valid and relevant resources on examining global imbalances, global production networks, as well as the role of Asian economic sector in either fostering or hampering the identified processes.
Therefore, the information synthesized in the paper can be regarded as reliable and accurate, evidenced by figures, tables, and illustrative schemes. Although the information reliable and evidence-based, there are a number of ambiguous statement that are associated with the problem of discussion.
In particular, the section analyzing progress of regional promotion does not provide sufficient explanation for the underpinnings of regional cooperation mechanism. The author focuses too much on the analysis of regional cooperation in regard to its influence on Western economies.
In fact, Asian economy can no longer be regarded as the one that depends on more developed countries. Therefore, this section should be expanded to define the actual state of affair in Eastern economy in much broader context.
Despite the fact that there are some inconsistencies in the introducing paragraph and the body of the article, the concluding remarks allow the author to avoid misconceptions because it synthesizes the information and provides a better picture of economic transformations.
Therefore, the article itself can be regarded as a comprehensive guide for learning more about financial and economic operation in Asian region.
The article at issue is a valuable contribution to exploring the major trends and directions in the development of Asian region as a powerful resource for the advancement of the global economies.
The represented data can be provoked business and policy interests because it exemplifies the major merits and shortcomings of economic and political processes in Asian sector.
The business activities carried on in the region, however, can also serve as an example of what strategies and constraints should be considered to prevent economic recession.
This is of particular concern to the analysis of Asian miracle report where the focus is made on the rebalance of financial activities and introduction of trends that would enhance profitability and productivity rather than mere increase in inputs.