State of the Economy, Its Orientation, and Success in East and Southeast Asia in the Past Two Generations - Essay Example

Countries such as Taiwan shared the economic growth and became sufficient in terms of technological improvements while at the same time countries like South Korea and Singapore also became the trading hubs for the world and the region specifically.  (Kaup 2007)

 The basic change in the structure and overall orientation of the Asia Pacific economies came after 1985 when countries in the Region signed the Plaza accord. The Plaza accord allowed the integration of these economies and further advanced the cause of the economic supremacy of the region in the world economy. It is also important to note that with the increasing economic self-sufficiency of the countries in the region, their overall dependence on the US gradually declined and they became relatively independent economies with their own dynamics and strengths to steer ahead in the world economy.

The period during the early 1990s however, also witnessed the worst financial crisis in these countries due to currency and foreign exchange issues which forced many countries like Thailand and Korea to re-evaluate their economic infrastructure and decision-making process in order to become more self-sufficient.

In the last decade of the 20th century, China emerged as the leading country in the region to make unprecedented economic progress. China continuously recorded economic progress of approximately 10% consistently. This rise in the economic power of China also gave rise to the speculation that based on its economic power; China will be the next Superpower in the world overpowering the US and other countries. The overall rapid increase of the economic power of the region in the world economy has therefore given rise to the assumption that in the 21st century, there will be three main centers of power in the world i.e Europe, North America, and East Asia.  (Mahbubani 1995)

On political grounds, the Region however remained fragile and did not make considerable progress. China is still predominately a socialist country with the government playing a central role in controlling almost every aspect of life including the economy as well as the political sphere of life. Similarly, the tension between North and South Korea is still one of the significant political threats to the economic stability of the Region.

Political changes in China, however, can also be considered in favor of free trade as, after the end of Mao Zedong’s revolutionary era, subsequent governments in China gradually opened the Chinese economy to the external world and achieve the natural integration of China in the world’s political and economic scene. This allowed international companies to invest in China and other regions to take advantage of the large and previously untapped market.

 Corruption is still rampant in countries like the Philippines and Indonesia with Indonesia being considered as the most corrupt country in the Region. Corruption in the Philippines is relatively more rampant due to the fact that most of the production resources and employment are controlled by large organizations. For them, it is relatively easier to do the corruption due to their overall influence in the government and in political parties.  (Digal 2010)

Considering the overall situation, it is clear that East and Southeast Asia may be able to surpass the economic progress made by the West. Countries like China are considered to hold the key for the economic future of the world however, on the political and governance level, countries in the region may still not be able to surpass the West and could even follow it. The political structure of the region is most fragile and based upon the inherent disliking for the West especially America. This therefore may create a further chasm between the two. This chasm may be the result of the very nature of the political and economic history of the Region. Predominately, this region has been either governed by Military dictators or by the Communist governments. Due to this reason, despite modeling the economic progress of the West, this region has not been able to model and follow the political and government model of the West.