Asia-Pacific Economic Update. Volume 2. Connecting Economics to Security
Abstract
The three decades of economic growth in the Asia-Pacific region demonstrated to the world that economic prosperity through international trade and investment improves the domestic and international security for all participants. (1) In 1973, the Asia-Pacific region accounted for just 15% of the world's economic output. By 2000, the region's share was 27% of world output when measured on an exchange rate basis. (2) Today, when measured on a purchasing power basis, the Asia-Pacific region is home to the world's second and third largest economies-China and Japan. The region's growth reflects a combination of quantitative and qualitative factors. Also, when growth falters, the mismanagement of these factors is evident. These factors include: (1) Relatively open economies characterized by vigorous trade and investment ties with the United States, Japan, and Europe. (2) High inflows of capital and labor to modern, internationally-oriented sectors. (3) High rates of national saving and aggressive investment in physical and human capital. (4) Stable macroeconomic policies conducive to investment and commercial activity. (5) Pro-market government interventions intended to steer resources into more productive activities. (6) Reliance on cultural factors that value education and a strong work ethic. Trade, investment, and aid are like steel girders in a bridge, buttressing the economies of the Asia-Pacific region and interlocking their common security. (1) Developing Asia produced 20% of the world's total exports in 2000, while the United States exported 13% and Japan produced 8%. (2) Asia-Pacific trade is multi-polar in nature, with neither the United States nor Japan being the single, dominant trade partner of Developing Asia.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2002
- Accession Number
- ADA405769