The two emerging economies of China and Russia might be ranking differently on the global economic scale but recently it seems they have something in common: a growing interest in the Asian region. Both the countries are witnessing a downfall in their economies.
What is the state of the world in terms of age structure? Currently, one in nine persons are already aged 60 years or over. With that figure projected to increase to one in five by 2050, the ‘grey tsunami’ is coming slowly but surely.
It is now a commonplace to refer to the 21st century as the Asian Century. With the world economy struggling to recover from the global financial crisis, the Asia Pacific region, and especially its developing countries, has provided much of the impetus for global growth. In 2015, developing countries the East Asia Pacific region are likely to account for over one-third of global growth — twice as much as the rest of the developing world. China in particular is now an economic powerhouse.
Chinese President Xi Jinping proposed the concept of the Maritime Silk Road (MSR) — now a part of the One Belt, One Road initiative — during his visit to Indonesia in October 2013. The MSR is an attempt to promote economic cooperation and connectivity by reviving the ancient maritime Silk Road trading route. To this end, China has pledged US$40 billion in the Silk Road Fund to develop infrastructure along the route.
Asian exporters are finding it harder to sell to the U.S., causing many nations to look for alternative markets of goods-hungry consumers.
The Chinese yuan is fairly valued, according to the IMF, while South Korea sees an improved economy and Singapore stuns analysts with growth nearly three times better than expected.
In China, the once controversial value of the yuan has become more reasonable, according to the International Monetary Fund. The group says that the Chinese currency is “no longer undervalued” as “real effective appreciation over the past year has brought the exchange rate to a level” that is fair for all parties, the IMF said in a statement.
A new opportunity for South Asia–Southeast Asia integration
India and China have signed US$22 billion worth of business deals. Indian Prime Minister Narendra Modi’s three-day visit to the neighbouring economic powerhouse was meant to mark a new chapter in relations between the world’s two most populous countries. Modi was certainly received warmly, but the symbolism on display betrayed the complexity of the two countries’ rivalry.
In most higher education discourse today it is not unusual to hear the claim that the world’s center of gravity is shifting toward the East. Indeed, no region has undergone as profound a transformation as Asia during the past half-century, from the 1970s to the present. Unprecedented economic growth has driven major social and demographic change and institutional reform and, in most countries, has brought about greater stability.
Nepal’s economy will undergo long-term recovery, stemming from a 7.8-magnitude earthquake that killed over 5,000 people. Nepal needs the help of nations and banks from around the world, and analysts predict economic contraction if the struggling nation does not receive the necessary support.
