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Extra info for Asia 2050: Realizing the Asian Century

Sample text

All countries must improve governance and guidelines. continually transform their institutions to realize the promise of becoming affluent societies by 2050. Global warming and climate change Significant improvements in the quality and credibility of national political and economic institutions Global warming and climate change, as well as (illustrated by rising corruption) are prerequisites for resultant severe water shortages, are mega challenges sustaining Asia’s growth trajectory. High quality insti- that have assumed global visibility relatively recently.

Higher prices signal scarcity in Republic of Korea has lagged significantly behind Re- spot markets and indeed commodity stockpiles seem public of Korea and increasingly behind the Northeast to be at lower levels than is comfortable for many gov- region of PRC. Second, the income differential be- ernments. While few formal long-term growth models tween Singapore and Indonesia reached 14:1 in 2010. include commodity prices as a factor in explaining the In the future, as a growing number of individual Asian pace of growth, conventional wisdom suggests that countries grow rapidly, the border divisions could growth could slow if prices surge further—if for no sharply expand over time if their neighbors fall behind.

Many parts of Asia have seen significant engine, especially for the growth of services. Wages increases in intra-country inequality as they unleashed start to rise, most rapidly for highly skilled workers, 33 “ A majority of Asian economies— including PRC, India, Indonesia, and Viet Nam—still have to demonstrate their ability to avoid the Middle Income Trap 5 and shortages can emerge. The traditional low-wage India, Indonesia, and Viet Nam—still have to demon- manufacturing for export model does not work well strate their ability to avoid this trap and the resulting for middle income countries.

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