Evolving Asia - Challenges and Way Forward

Asia is evolving and the share of Asian countries to the global GDP has been increasing in the past two decades. The time when the industries in the developed world accounted for the larger piece of the global GDP is an affair of the past nowadays. While the region has developed it has also thrown up some challenges that have to be worked upon to build upon the progress that has already been made.

The first major challenge that Asian companies face is to get over the stereotype that Asian companies are adept at copying ideas. The world over Asian brands has been labelled as those who are good at copying ideas and using the capital and cheap labor to churn out the output. There is a need for more focus on the research and development to come up with original ideas and support for the entrepreneurs to execute these new ideas in the Asian Markets. This will not just take off the tag of Copying Companies but will also take Asian companies to the new highs of success.

Secondly, the rapid increase in the Asian markets has contributed to increased inequalities. The richest 1% of the population today accounts for 10% of market consumption. While the developing Asian markets have led to improved lifestyles for many, but the portion of people below the poverty line has not changed much. The inequality is not limited to income but also includes the kind of opportunities that are available to everyone. These inequalities may lead to social imbalance which may further lead to social unrest. For Asian companies to continue their progress ahead the governments need to address this issue to maintain conditions favourable for investment in Asian markets.

Besides, growing businesses have also compounded the problem of environmental damage. The dependence of the Asian industries on non-renewable sources of energy has led to increased emissions, which have further contributed to accelerating global climate change. We have witnessed the damage caused by climate change the world over and the Asian Markets are not immune to such damages. The businesses in Asia need to look into tapping the sources of renewable energy to meet the majority of its requirements to take up development in an ecologically responsible manner.   

In conclusion, the Asian region presents a unique opportunity to shoulder the major portion of development all across the globe. These opportunities have to be taken up responsibly to ensure development holistically without disturbing social and environmental ecosystems.