The Rise of Asia

By Muhammad Abbas Azhar

A New Era in Global Influence

There is little doubt that Asia has risen to prominence in our day. Already the world’s most populated region, Asian countries have progressively increased their political and economic impact in the global arena in recent decades. While China has historically started this growth, in the next few years, nations such as India, Indonesia, and Vietnam will increase their worldwide influence as a result of both increasing economies and geopolitical shifts. Will the world order change when the balance of power swings eastward? 

Hungarian Prime Minister Viktor Orban, a nationalist in power since 2010, made some reflections during a speech in which he foretold a shift of global dominance down from the “weak” West and toward Asia and Russia. “In the coming decades,  maybe centuries, Asia will be the dominant center of the world,” Viktor Orban forecasts, naming China, India, Pakistan, and Indonesia as the world’s major powers. 

Asia’s Global Authority in the 21st Century  

Asia is beginning to emerge as a major global force in the twentieth century. Known as the “Asian Century,” this era is known for rapid economic expansion, significant technological advancements, and a growing influence in world politics. While European colonial powers formed the nineteenth century and American dominance influenced the twentieth, Asian nations are emerging as significant participants on the global stage in this century.

• 19th Century: European Dominance: In the 19th century, European colonial empires expanded their reach worldwide. European countries laid the groundwork for current global business and political systems through the Industrial Revolution and colonization.

• 20th Century: American Supremacy: During the twentieth century, the United States emerged as the dominant economic and military force. Following World War 2, America’s cultural, technical, and political dominance changed global institutions and alliances.

• 21st Century: Asian Dominance: Asia’s rise in our century is characterized by swift economic expansion, technological progress, and a rise in geopolitical influence. This period, known as the “Asian Century,” witnesses the growing prominence of nations such as China, India, and those across Southeast Asia in political landscapes.

Today the world is experiencing a rising impact from Asia. The scope of this goes beyond what many realize. It includes more than China. It covers a diverse range of civilizations of peoples.

Dawn of the Asian Century

The “Asian Century” is indeed bigger than you suppose. Far more advanced than just China, the new Asian system taking shape is a multi-civilizational order scaling Saudi Arabia to Japan and Russia to Australia—linking five billion people through trade, finance, and structure networks representing 40 percent of global GDP. China has taken the lead in building the new Silk Roads across Asia, but it will not lead it alone.  Rather, Asia is returning to the stable multipolar order that was in place long before European colonialism and American dominance, with India and Southeast Asia coming into their own as economic and strategic centers.

Asia’s Growth 

Asia is currently at a critical moment when decades of development have come together to write a new chapter in the region’s history. What’s driving Asia’s ascendancy? Let us connect the dots. India is rising and on its way to becoming an economic behemoth. The Indian economy is projected to increase by 6.8% this year. Its real GDP is predicted to exceed Japan’s by 2025, and by 2030, India is likely to replace Germany as the world’s fourth-largest economy, with an assessed $7 trillion GDP. As India benefits from changing geopolitical circumstances, in particular access to discounted oil from Russia, external commerce is expected to increase by more than $393 billion during the next decade.

China remains steady and strong. China also continues to be an Asian growth story. The International Monetary Fund (IMF) has increased its projection, for China’s growth in 2024 by 0.4 percentage points to reach 5%. Despite a drop in the GDP growth rate to 3%, China’s GDP is anticipated to surpass that of 2022 by over $5 trillion by the year 2030. Being a leading player in the global economy China continues to set standards worldwide and propel progress in crucial sectors such, as electric vehicles, sustainable energy, and digital technology. 

ASEAN is becoming a collective force. Trade among the Association of Southeast Asian Nations (ASEAN) is forecast to grow by $1.2 trillion over the next decade. By 2031, ASEAN exports are expected to surge by nearly 90% versus overall global trade growth of less than 30%.

Emerging Themes: Trade Interconnectivity and Tech Innovation

Asia is experiencing increased intraregional connectivity and cooperation. Global businesses, as well as East Asian organizations, are moving manufacturing and sourcing to Southeast Asia.  These states are well connected—both with each other and to bigger markets around the world which has created openings for companies to make integrated supply chains and tap markets across the region. 

New trade agreements are reinforcing this change. The Regional Comprehensive Economic Partnership (RCEP), a free trade agreement between Asia-Pacific states, will give ASEAN companies technology access to a familiar market of 2.2 billion people.  Tech and Innovation Hub Asia is also becoming a center for global technology and invention. By 2030, Asia’s fintech earnings are expected to be bigger than North America’s. A Boston Consulting Group survey uncovered that Asian consumers are more positively inclined towards artificial intelligence (AI) than those in the West, indicating that Asia is likely to offer more near-term openings in this emerging sector.

Global supply chains have faced unknown recent stresses: the COVID-19 pandemic, geopolitical pressures, rising protectionism, and tightening restrictions on technology products. Supply chain adaptability is now at the top of commercial decision-makers’ minds. Formerly known only for its outsourcing centers and manufacturing, Asian people are now running some of the biggest global companies. This allows the continent’s countries to find more opportunities within the region rather than having to look outside. This also translates into further intra-regional influence and impact.

Challenges and Contrasts

Contrasts remain a prominent feature of the Asian tale. The region faces frequently more pressing challenges than the rest of the world.  The Asia-Pacific area accounts for over 50% of worldwide CO2 emissions. Four Southeast Asian states—Malaysia, the Philippines, Vietnam, and Thailand—are among the top ten most affected by climate change during the last two decades.  Further, 37% of ASEAN GDP is predicted to be at risk if temperatures increase by 3.2 °C.

Inclusion in finance remains a challenge: over 44% of adults in the ASEAN area are unbanked. Asia is not an exception to the global healthcare system weaknesses brought to light by the COVID-19 epidemic. There are fewer medical center beds per 1000 persons in the region than in the standard for the OECD, which represents a considerable difference in healthcare availability. This is particularly significant because several Asian countries have aging populations.

Finding Innovative Solutions to Asia’s Challenges

What makes today’s Asia different from the past is the magazine of scalable and innovative solutions it’s developing to meet these challenges. While it’s true that Asia has a lot to lose from rising temperatures, it also has the most to gain from climate action.  Climate Action Asia is projected to unleash 43% ($4.3 trillion) of the $10.1 trillion yield opportunity available by 2030 from activities like the expansion of renewable power,  enhancing energy effectiveness in buildings and transportation, and promoting more circularity in producing industries.  Fintech Growth is also anticipated to reach $1.5 trillion in annual returns by 2030, accounting for nearly 25 of all banking valuations worldwide. The greatest market, accounting for 42% of all additional profits, is expected to be Asia-Pacific (APAC), particularly in Asia (China, India, and Southeast Asia), where fintechs will contribute to further economic growth. 

The COVID epidemic has accelerated digital acceptance in healthcare leading to innovations, with markets like India seeing a $2.5 billion upswing in healthcare investments in 2021, followed by over $1 billion in 2022. These investments were spread across mature sections similar to e-pharmacy, e-diagnostics, fitness, health, and specialty care. 

Asia’s cultural influence is also growing. Korean pop culture, commonly recognized as the Korean Wave or “Hallyu,” has swept the globe, influencing music, television, and fashion. Japanese anime and cooking are also extensively popular, and Bollywood movies have a significant foreign followership. This cultural exchange enriches the global cultural landscape and fosters a deeper understanding and appreciation of Asian societies. Asia is home to some of the world’s leading educational institutions and invention centers. Countries like Singapore, South Korea, and Japan are known for their high educational norms and cutting-edge research. These countries are producing a new generation of leaders and innovators who will drive future growth and progress.  

Asia’s progress also entails resolving local issues and encouraging collaboration. The ASEAN Regional Forum and the Shanghai Cooperation Organization are efforts designed to promote regional peace and stability. These efforts are critical for maintaining a facilitative atmosphere for economic growth and progress. More importantly, these solutions will not only help Asia but they could also be replicated globally to help the whole world.

Growth in Asia is more than an economic phenomenon; it represents a transformational move changing the global order. As the region’s influence grows, it presents possibilities and challenges that will shape the twenty-first century. The world must be prepared to adapt to an era in which “Asia First” becomes the norm, and regional ideas and policies create new global standards.