From the Editor
Asia’s Promise
What is Asia? The question came up again and again as we put together this issue of F&D. At first blush, the answer seemed simple: Asia is the locomotive of the world economy, posting impressive growth numbers for the past several decades.Â
Indeed, the region appears poised to make history: if current trends continue, the “Asian” economy will be larger than that of the United States and Europe combined in less than two decades—a prospect that has prompted some to dub the 21st century the “Asian Century.”
But a closer look revealed stunning diversity. Once you get past the headlines, the picture is complex and richly textured. “Asia” is home to countries of all sizes—from tiny Pacific islands to India and China, the world’s two most populous nations—and at all stages of economic development, from “frontier” economies scrambling up the economic ladder out of poverty to powerhouse emerging markets to advanced economies.Â
Some Asian countries offer sophisticated financial markets and are centers for technological innovation, while others are largely agricultural.Â
The region is home to 700 million poor people, about 65 percent of the world’s poor—a figure that stands in stark relief against Asia’s economic strength and growing prosperity.Â
Certainly, Asia is no monolith. This issue of F&D looks at Asia from a variety of angles, seeking to provide insight into the region’s economic present—and future. We begin with an overview by the IMF’s Asia department head, Changyong Rhee, who argues that Asia will need to deal with five important challenges if the region is to continue on its amazing economic journey.Â
David Dollar looks at...
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