The Rising New Asian Economy

The phenomenal economic performance of China and India in the past two decades have recently become a subject of intense discussion, particularly in terms of the potential repercussions in shifting the status quo of growth concentration and trade patterns in the region. In this same time period, growth of the Japanese economy has remianed subdued, while growth in most East Asian countries was disrupted by the 1997 economic and financial crisis. China, and to a lesser extent India, on the other hand, have continued to grow at an extraordinary pace throughout this time span. Both have risen to prominence in the past decade - hence coining the term the "new" Asian economy. As such, the emergence of these two economies have changed the patterns of produxtion and trade in the region, posing threats, benefits, and challenges to each country in the region and beyond. This has resulted in the emergence of these economies both as new partners for trade as well as competitors for foreign investment in the region. This paper will focus on analyzing the impact of the rise of the "new" Asian economy, and how this has set a new stage for other economies in the region. This has put pressure on regional economies to rethink their strategies going forward, both in terms of maintaining competitiveness in the global economy, while at the same time exploiting any complementarities, where possible. Finally, the region may need to conjure up new ways to cooperate in order to draw upon its strengths to achieve balanced and sustained growth and development.