By Asian Development Bank
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Extra resources for Asia 2050: Realizing the Asian Century
In a steadily growing economy, the per capita GDP would rise continuously over time, towards higher incomes. That is the experience of Republic of Korea. But many middle income countries do not follow this GDP per capita ($) the per capita incomes of three middle income 18000 Republic of Korea 15000 Avoiding the middle income trap 12000 9000 pattern. Instead, they have short periods of growth followed by periods of stagnation or even decline, 6000 Brazil or are stuck at low growth rates. They are caught in the Middle Income Trap— unable to compete with low income, low wage economies in manufacturing exports and unable to compete with advanced economies in high 3000 South Africa Caught in the middle income trap 0 1975 1980 1985 1990 1995 2000 2005 Source: IMF World Economic Outlook, October 2010.
Power will be distributed throughout the region; it Several internal conflicts (where one or more ethnic group seeks to break up from an existing state) have been brewing intermittently. Recently, is generally agreed that the best case scenario is a multi-polar Asia. This leads to the question of what might sustain the Prime Minister of India described the Maoist peace and order in a multi-polar Asia. Economic insurgency in eastern and central India as the most interdependence, a key driver for peace, is steadily serious threat to India’s national security.
Half of the world’s population residing in Asia and the These interrelated aspects are critical for Asia’s Paciﬁc, Asians have more at stake in the well- being long-term growth and development because the of the planet than any other people. future competitiveness and prosperity of nations will depend greatly on their efﬁciency in the use of natural 5 Leonardo Gasparini & Pablo Gluzmann, “Estimating income poverty and inequality from the Gallup World Poll: The case of Latin America and the Caribbean,” Palma de Mallorca, Spain: ECINEQ, Society for the Study of Economic Inequality, 2009.
Asia 2050: Realizing the Asian Century by Asian Development Bank