“I think a major cause of present Asian economic difficulties that mainly come from, you know, lack of market economy”.
- Kim Dae Jung
Asia is the largest of the world’s continents, covering approximately 30 percent of the Earth’s land area. Asian Economy comprises of 47 countries with more than 4.2 billion population (60% of the world population). China and India has the proud of being the largest economies during the ancient and medieval times. Prior to world war II South East Asia was growing due to trade and emerging new technologies. Japan in particular managed to develop its economy due to a reformation in the 19th century. Only few countries struggled to remain free from constant pressure exerted by Europeans, Britain, and Dutch. To promote the domestic economy after the World War II, China and India adopted social politics. Under central guidance from the Japanese government, the entire economy was undergoing a remarkable restructuring. Taiwan, Hong Kong, South Korea, Southeast Asia experienced rapid growth in their economy. South Korea, Taiwan, Hong Kong and Singapore emerged as the Four Asian Tigers with their GDPs growing well above 7% per year in the 1980s and the 1990s. In 2007, China's economic growth rate exceeded 11% while India's growth rate increased to around 9%. The rise of China in the last 10 years has done a great deal to reduce Asia's dependency on the EU and the US. In 2011, China, Indonesia, the Philippines and Thailand grew more than four times as fast as the American economy, and last year’s 6.5 percent growth was nearly three times that of the United States .The economies in Asia for the most part don’t maintain currency pegs. Currencies like the Malaysian ringgit, the Philippine peso and the Thai baht have almost dropped about 5 percent against the dollar. In Indonesia, the rupiah fell this month to 10,000 per dollar for the first time since September 2009.India’s currency has plunged 15% against the dollar since May, when the U.S. Federal Reserve signaled it might cut back its bond-buying stimulus program.