I’ve been a keen observer of capitalism all over the world. It has certainly paid great dividends for many of the world’s matured democracies. Although a sustained severe slowdown in economic growth and erosion of wealth of the matured democracies is under way, it does not take away from the fact that most of the world’s capital is still concentrated in these places. And so it is my belief that a transition of the economic balance of power to the emerging markets will still take some more time. The question is how? In order to give a good answer, it is imperative to explore the present state of emerging economies which are situated in Africa, Asia, South America, and Eastern Europe. Are these economies enjoying the fruits of Capitalism?
The answer is both ‘yes’ and ‘no’. Are we too quick to judge and are we comparing apples and oranges? The answer is ‘yes’ again. Many of the aforementioned geographies are new to the capitalist world. It will take some time for these new capitalist countries to accumulate enough capital, and have high volume capital markets which can pose a real threat to the matured capitalist democracies of the world. Do not be mistaken. Asia has all the potential needed and more to lead the world. Here is something to think about: roughly 60 percent (four billion) of the world’s population is housed in Asia and there are over 46 countries in Asia. Most promising Emerging economies are also situated in Asia.
What do we need in order to catch up to the wealthy nations of the world? If Asia is destined to be next economic power hub of the world, then a few things must be settled sooner rather than later:
1) Relations between Asian countries such as China, India, and Pakistan must become warmer. This region is the epicentre of instability in Asia.
2) Asia is better off if it is governed by democratic institutions (China will eventually change sides too). The fact remains that all the rich Western countries are democracies. That is no coincidence.
3) Don’t repeat the mistakes of the matured democracies. The latest fiscal and economic crises in the world should be an indicator that governments should spend within their means. Also, businesses should not be left alone as ‘laissez-faire’ economics proponents suggest. Some regulation is necessary.
4) Asia needs to strengthen its own diplomatic and trade institutions in order to benefit its member states.
5) Asia needs to come together and flex its collective muscle in the world in order to demonstrate that is the torchbearer of the top economic mantle. This means that a consolidated Asian influence can check unfair trade and market practices perpetrated by overly-protective and anti-competitive Western economies.
6) Mitigate and minimise corruption with strong and effective judicial systems.
One of the best ways to bring Asia to the top of the world is to help improve each country individually.
KIRAN KHAN
Lahore