Wednesday, 16 September 2009

Fantastic Boom of Middle Class in Asia

Simon Djankov, World Bank Analyst, on Saturday [29/8] informed Business News on World Bank’s latest study on global macro-economy “What was noteworthy was a big leap of middle class number in Asia. This is a fact might serve as a “benchmark” for the Asia region or the world in reforming global economy of the world in the future. The leap was indeed significant but most important for the world, especially in relation to the global economic profile.

This most significant leap was a good portrait of a powerfully energized Asian market. “The role of Asia’s leading countries like China, India, and South Korea including also Indonesia was most important to the development of the Asian region. Japan had forged far ahead, often considered as no longer part of Asia, but ranked with the Western Society. Now with the emergence of China, India, South Korea and Indonesia, the world was more convinced that the Asian region would be most influential to the global economy in the future”.

Asia’s development potentials would have its influence on the world’s economic profile “One thing most noteworthy is that when in the past, the Western Society was regarded as the core of investment, now the world is astonished by the fact, how aggressively Asian investors pursue global assets. This means that Asian states had been able to undo the hegemony of the Western states and if necessary forge further ahead more freely to determine faith of this part of the world independently. This had somehow triggered some kind of worry among the Western Society. On the other hand, for the Asian states it means justification of claim over a bigger portion of the “cake of influence” over the global market. With more sure-footed maneuvers especially with the support of vast domestic markets in China, India and Indonesia, Asia’s bargaining position was getting stronger than ever”.

The big leap of middle east number in Asia had become an astounding phenomenon. With such a clear and visible trend, it was predicted that the global industry would shift to Asia where labour cost was “much cheaper” compared to industrial centers of the western society. “The image of global products would gradually be focused on Asia because up till now, there are no other regions which could be regarded as more competitive. If Asia’s product quality continued to improve, the world will see that the global industry would be centralized in Asia, in Asian states. This certainly must be anticipated wisely and positively, by both the Government and the private sector”.

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