Latest news with #AsianCentury
Nikkei Asia
6 hours ago
- Business
- Nikkei Asia
Welcome to the nuanced reality of the Asian Century
Ari Sarker is the president for Asia Pacific at Mastercard. When the Asian Development Bank released its report on the "Asian Century" in 2011, it projected that the region would account for roughly 40% of global GDP by 2030 and 52% by 2050. In fact, Asia had already surpassed these forecasts by 2024, contributing nearly 55% of global GDP.
Forbes
02-07-2025
- Business
- Forbes
Superclans And The Shift To An Asian-Centered Global Economy
Radu Magdin is CEO of Smartlink Communications. Global analyst, consultant, passionate about leadership, communications and competition. In preparation for one of my upcoming reports on "Asian century superclans," I had the opportunity to speak with several prominent Asian business families and would like to share some useful insights from these conversations and my research. Reframing The 'Asian Century' First, it should be noted that, as with most terms that gain currency in academic, business and policy circles, "the Asian century" contains both elements of insight and overstatement. Its insights center on the growing gap in gross domestic product (GDP)—whether measured by purchasing power parity (PPP) or current market exchange rates—between Asia and the rest of the world, particularly Europe and North America. In terms of wealth, technology and culture, it is not difficult to see why the century can be seen to look increasingly Asian; it is predicted that by 2075, up to seven of the world's largest 14 economies will be Asian. A lot of the growth is expected to be intra-Asian, and already, 60% of Asian trade is intra-regional. The exaggerated aspect of "the Asian century" comes from uncritical repetition. I am certain that the United States will remain richer by almost any financial measure that takes into account population. What are currently emerging markets will not account for a majority of global capital for quite some time, meaning that it is likely a lot of that Asian growth will continue to pay dividends to the U.S. That growth is best understood as a convergence in per capita productivity across regions. To illustrate, Asia produced (paywall) about 61% of global output in 1820, 20% in 1950 and 48% in 2018. The American dollar standard, while wobbly, is mainly under potential threat within the U.S. itself. The Evolution Of Asia's Business Elite With that, we can understand how a specific class of businesspeople grew and may come to dominate global business. They came about during what may be one of the largest, and possibly last in our lifetimes, great expansions of the middle class as per capita incomes in East Asia began converging with the West, first with Japan, then the East Asian tigers phenomenon and, finally, with the sheer mass of China. While 80% of the population growth in the world is expected to occur in Sub-Saharan Africa and South Asia, it's becoming increasingly evident that the middle-class boom may have been unique to East Asia—driven in large part by manufacturing jobs, which moved roughly 30% of the labor force into the middle-income bracket. That means many rose and came of age, manufacturing stuff that the middle class wants. Further, many of the business classes trace their roots to a particular mix of nationalism and capital scarcity. Many received bank loans with the informal agreement that part of their task as industrialists was more than business, but the goal of national modernity through technological and economic convergence with a West that has been the benchmark in the room for most of the past century. That means capital structures tend to be heavily tilted towards debt capital, contemporaneously about as much as in the 1990s. Furthermore, while corporate governance is generally regarded as improved, conglomerates remain the standard rather than the exception; According to McKinsey, conglomerates account for 80% of the largest companies by revenue in South Korea, with figures of 90% in India and 40% in China. Family Ties Finally, as I have touched on in past articles, it cannot be emphasized enough that these are families running a family business in a manner reminiscent of European aristocratic families running their age's business: agriculture-based fiefdoms and import-export value chains. About 70% of the alluded to conglomerates are family businesses, and there is little to indicate this will change significantly in the future. Furthermore, while in the West, the common definition of a family-owned company is as little as a family holding 5% of ordinary shares, Asian conglomerates such as Reliance or Samsung tend to be almost wholly family-controlled. Furthermore, new entrants in the category, such as VinGroup, tend to follow the same model. Personally, my belief is that this business model will continue well into the future and end up controlling a significant proportion of the global GDP, with the current crop of "superclans" serving as the first draft of what may become some of the richest families in history. Takeaway While the term "Asian century" is often overused and sometimes misunderstood, it does reflect a meaningful and lasting shift in economic influence toward the continent. One of the effects of this is the advancement of a particular sort of business from the periphery of the business world to its center stage: the family-owned conglomerate. Business leaders will have to learn to navigate and interoperate with this type of business as effectively as they do with the equity-financed Western corporation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
South China Morning Post
07-06-2025
- Business
- South China Morning Post
Asia is finally cool in the eyes of those who matter
The late Joseph Nye, who coined the term 'soft power' , often warned that US President Donald Trump's actions were harming America's reputation abroad. Meanwhile, perceptions of China and other Asian countries are on the rise. Could this indicate a shift towards the fabled ' Asian century '? More than a third of people in Southeast Asia were born since the beginning of the 21st century, amounting to more than 250 million people. As a result, none of them personally experienced the 1997 Asian financial crisis. A small minority encountered the September 11 attacks and the subsequent 'war on terror', while only a few can recall the 2008 global financial crisis. However, most of them have been directly affected by the Covid-19 pandemic . Some have now entered the workforce and can afford to travel abroad. Many Southeast Asians consume a diverse range of foreign content and products online and offline. What does the world look like to them? Geopolitics is back and globalisation is no longer taken for granted. Meanwhile, regionalism might be stronger than ever, especially given Trump's 'America first' doctrine China is leading the way in shaping socioeconomic and political developments across Southeast Asia and beyond. Part of the reason for this is its Belt and Road Initiative , which has been instrumental in expanding its influence across different domains. This initiative encompasses physical and digital infrastructure, including roads, trains, bridges and the technological foundations for future connectivity such as 6G and beyond, which will power smart cities.
The Hindu
02-05-2025
- Business
- The Hindu
A profound shift in the global order
India is at another inflexion point, reminiscent of Vasco De Gama sailing into Kozhikode in 1498 and of a complacent Zamorin lacking strategic intention. Instead of trade routes, global value chains are being reshaped by force. The stakes are high for India which is in line to be the third largest economy. The 75-year-old post-colonial order, labelled as globalisation, characterised multilateralism imposing rule-based restrictions on all for the common good. Its conceptual foundation of a world divided between 'donors' and 'recipients' became obsolete with China 'overtaking' the United States as the largest donor, and in the share of manufacturing and global trade. The World Trade Organization and the United Nations and Treaties lost their utility to the proponents, leading to U.S. withdrawals. The COVID-19 pandemic exposed the G-7 scrambling to corner medicines, oblivious of the plight of others. Now, the G-7 is splitting leaving a vacuum and global institutions such as BRICS will soon have more requests for membership. U.S. President Donald Trump is not whimsical. He is responding to a more equal world moving out of the colonial frame that is attempting to hold on to fading benefits. Bilateral deals are forcing countries to subordinate their interests and the way tariffs have been described and defined arbitrarily based on trade imbalance intrudes into how national laws should be changed. Least Developed Countries no longer have privileges. The U.S. is restructuring its approach to prosperity and power and so should the others. A post-WTO frame The 'breakup' of the G-7 and G-20 now leaves global agenda-setting open. Since 2020, the U.S., China, the European Union and India have together contributed nearly three-quarters of all growth, with the U.S. and China accounting for almost half. There is also a decline in the relative power of the U.S. Russia has become an Asian power, increasing energy links with China and India. Asia will soon again have two-thirds of global wealth and power (as had been the case throughout civilisation except for the age of colonialism). Geopolitics has returned to its natural state of co-existence sharing prosperity. India has to be strategic to grasp new opportunities with the 'dismantling' of the WTO just as China used its entry into the WTO for its rise. The U.S. and China are pretty much evenly balanced in terms of influence, trade, technology, defensive military capacity and playing tit-for-tat on tariff levels. The challenge is to manage trade relations with the U.S. pushing its agricultural and energy surplus and to build on the rapprochement with China. The future direction has been set in the recent statement of Prime Minister Narendra Modi that this is the Asian Century. The turmoil within the Association of Southeast Asian Nations (ASEAN) is an opportunity to jointly work towards an Asian common market, with bilateral concessions to share prosperity. As the WTO's 'most-favoured nation' clause of non-discrimination withers away, it is in India's longer term interest to propose a new cooperative architecture to ASEAN and the African Union, as their potential consumption will exceed current consumption in the U.S. and Europe. India's world-class diplomats should be given the task of coming up with a new type of principles of global governance for a more equal world. Gaining from global value chains that are dependent more on technology than on tariffs requires laying out a new type of rules that reduce non-tariff barriers and treat linkages between goods, services, investment and infrastructure as part of composite agreements, with a review of national impacts annually. Trade and innovation neglected Emerging from colonialism, India framed foreign policy in terms of a balancing between the great powers, relying on tactics than on strategy. The first challenge to the post-colonial world was the Bandung Conference of newly independent Asian and African countries in 1955. Jawaharlal Nehru moved to the Non-Aligned Movement in 1961, shifting from economic development to peace in a divided world, becoming a darling of the West while India remained poor. The best diplomats are still sent to negotiate resolutions in the United Nations, ignoring rights and opportunities through trade. India also ignored what other leading powers were doing — technological innovation in partnership with academia and industry, which is the other side of the coin of trade. Now is the time for hard decisions to be taken to develop a national consensus between political parties and States on how to nurture talent and focus on skills and employment in order to regain our technological edge, wealth and global status. The West developed on the foundation of colonialism unlike the East. New policy groups need to engage and seek complementarity with China, ASEAN and Africa as value chains get restructured. There will no longer be global goods and treaties to which others can subscribe; the smaller countries that have been hit hardest by the new order are looking for an alternative to choosing sides India has the endogenous capacity to aim for global technological leadership by developing open source software that will shape future multilateralism and international cooperation. Huawei, which was sanctioned by the U.S. for spreading telecommunication networks worldwide, is manufacturing 7-nanometer (7nm) chips just behind global technology leaders. The DeepSeek open source AI model is cheaper than and as good as the best in the U.S.. Fifteen years ago, a World Bank study noted that China has reached global scale in the hardware industry but not in software. India had achieved the reverse, then faltered. Lesson from China The most important lesson in China's re-emergence is national consensus on endogenous pathways to achieve prosperity, and not looking at socio-economic growth through the modelling prism of the West. Patents are a better indicator of future prosperity than GDP. Reducing the price of assured electricity is the most effective incentive for a restructuring of the economy, and prosperity is the optimum adaptation to adverse effects of climate change. India needs to formulate grand challenges with academia and industry to leverage its world-class human talent, vast data and proven digital stack to build the best large language models in the world, which would make India a formidable cyber power. In the digital world, the foundation of wealth and influence is AI, which is reminiscent of India clothing the world for millennia relying on skill and not monopoly. Mukul Sanwal is a former UN diplomat
Express Tribune
19-02-2025
- Politics
- Express Tribune
Pakistan committed to APA, SCO, ECO connectivity
Senate Chairman Syed Yousaf Raza Gilani on Wednesday reaffirmed Pakistan's commitment to promoting regional peace, economic connectivity, and sustainable development through active engagement in multilateral forums such as the Asian Parliamentary Assembly (APA), Shanghai Cooperation Organization (SCO), and Economic Cooperation Organization (ECO). While addressing the plenary session of the APA in Baku, Azerbaijan, he said that peace, democracy, human rights, and sustainable development are shared ideals. He highlighted that the APA serves as a vital platform for pursuing these common goals, transforming it into a true institutional voice of the Asian Century. The Chairman said that global landscape continues to evolve and Asia remains at the center of geo-economic transformation, security concerns, and geopolitical realignments. Gilani said that parliamentary diplomacy serves as a bridge that connects diverse nations and political systems in pursuit of common interests.
