Assess the state of the economy, both its orientation and success, in Essay

Assess the state of the economy, both its orientation and success, in East and Southeast Asia in the past two generations - Essay Example Other countries such as Taiwan also shared this 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 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 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 early 1990s however, also witnessed a worst financial crisis in these countries due to currency and foreign exchan ge 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. ... refore gave rise to the assumption that in 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 made considerable progress. China is still predominately a socialist country with government playing central role in controlling almost every aspect of life including the economy as well as the political sphere of life. Similarly, 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 reg ions to take advantage of the large and previously untapped market. Corruption is still rampant in countries like Philippines and Indonesia with Indonesia is considered as the most corrupt country in the Region. Corruption in Philippines is relatively more rampant due to the fact that most of the production resources and employment is 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 the 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