Asian Economic Review Essay

Review Essay

Article Chosen:

2. “From the Asian Miracle to an Asian Century? Economic Transformation in the 2000s and Prospects for the 2010s.”

By Yiping Huang and Bijun Wang.

Contents.

I. Introduction

II. Article Summary

III. Article Appraisal

IV. Reference List

V. Bibliography

Word Count: 1519

I. Introduction

The article written by Yiping Huang and Bijun Wang presents a detailed analysis and rationalization on the GDP growth of Asian countries after the Asian Financial Crisis (AFC) and the projected direction of regional financial markets for the coming centuries. The Asian miracle relates to the surfacing of China and India, Asia’s largest growing economies, after the AFC and the following extensive GDP growth rates in the region over the last ten years. The remarkable outcome of the global financial crisis (GFC) was the “growth in both Chinese and Indian economies remaining above 9 per cent”, as quoted from the article. This was a shock to most, as other regional Asian economies had experienced negative rates of GDP growth, along with the rest of the world. Similar to the pre industrial revolution before western economies swiftly advanced, there are predictions of China and India mutually dominating the world economy again. These forecasts are questionable, as is the assumption that Asian growth will continue to be stable and sustainable. Projections made by the International Monetary Fund (IMF) reveal that China is expected to surpass the United States, and by 2016, become the prime economy of the world. The revolution experienced by Asian economies throughout the 2000s is significantly due to integrations of supply chains through trade of commodities, imports and exports of capital, current account changes, increasing foreign exchange reserves and decisions in regional cooperation. As driver of commodity markets, questions arise as to the steady continuation of growth and expansion in Asian economies.

II. Article Summary...