It’s bad here…and (in some cases) even worse there

After some time of watching the events of the American financial crises unfold, the impacts of Asian economies are becoming clearer each day. Although initially East Asian countries had hoped they would largely avoid the aftershock of the crash they currently are realizing the effects. Both, imports and exports have significantly dropped in comparison to this time in 2008. Countries like China, South Korea, Vietnam, Japan, and Singapore are experiencing the most disastrous declines in trade. For example, “Even in China, exports are spluttering, down by 2.8% in December Singapore’s by 20%. Falls in imports are often even starker: China’s were down by 21% in December; Vietnam’s by 45% in January.” Such a swift decline has come at somewhat of a shock to Asian countries, as 2007 was a year of relative economic development for countries like China who expanded their GDP by 13%. Such dramatic declines can easily be attributed to the dominance of Western influence on Asian economies and the dependent relationship which has recently gained substantial strength. However, analysts have also determined that shortcomings in domestic demand have also largely contributed to the problem. Of course Asian countries will agree that the majority of the blame should be placed upon Western countries for enticing Eastern nations into such trade deals. At a time when citizens are looking to their government for answers they are currently coming up empty. However, Asian governments will soon be able to react by investing in public works programs, which can aim their efforts to improving the infrastructure of these nations, an investment, which is sorely needed. However, the fact still remains that Asian countries are overly dependent upon exports to Western nations, which will ultimately hamper a swift and immediate stimulus plan.

Of the nations who heavily rely on exports to support their economy, Taiwan is the clear leader. Because they have based a substantial portion of their economy on providing technological items to hungry Western consumers they have been hit the hardest.
Some of the most clear indicators of the failing Taiwanese economy can be found in the 5% decrease in average wages as well as the 5% increase of unemployment. Such statistics seem to be a commonality among most competitor nations. Worsening the situation, the wealthy management population of Taiwan has moved their factories to China. This has decreased their domestic spending which is needed to stimulate the economy.
To provide a perspective of this largely encompassing economic issue, the ASEAN summit, which is set to take place February 28th and 29th, will primarily focus upon taking the final steps to legitimize their existence and strengthen the union of the partnering nations.


"It is the first time leaders will meet since the group signed a landmark charter in December. The document made ASEAN a legal entity and moves it a step closer toward the goal of establishing a single market by 2015 and becoming a European Union-like community."

This shift in a primary focus toward the economy has come a time while human rights violations (another central focus of the union) against the people of Rohingya have occurred.
“…including the plight of the stateless Rohingya boat people who flee Myanmar and have recently washed up on the shores of Thailand, Malaysia and Indonesia — will be discussed on the sidelines but not as part of the summit's formal agenda.”
Clearly the economy is the global hot topic as nations are suffering. However, for the economy to take precedence over human rights violations, we now have some perspective of this dire situation. While the crisis is a convoluted mess, Asian entities need to begin to move in the right direction to shorten the distance of a recovery.

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Asian entities have enjoyed a recent history of quickly emerging economies which have vastly improved the living conditions of many citizens and have changed the economic mindset of those in power. However with the recent economic downfall of the United States, countries across the globe have suffered. This ripple effect has sent governments in countries like China scrambling to ensure that large corporations do not begin to implement mass layoffs. Governments in these nations have a vested interest in moving proactively to deter social unrest. Asian countries generally share the belief that it is only fair to minimize layoffs of a failing company and help workers retain their dignity. It may seem as though maintaining dignity and one’s occupation do not directly correlate; however in this region of the globe saving face is one of the most important personality attributes one can display. The Chinese government has recognized the importance of keeping its citizens employed by adding a contingency to the $586 billion economic stimulus plan that ensures corporations use their aid to create as many new jobs as possible.

There are openings for the unemployed in skilled positions; however most workers in Asia do not have more than a high school education therefore they are very limited in their options. The Guangdong province of China use to be considered “the world’s factory floor” however the recent decline in consumer demand for Chinese products has shut down a large number of factories. This alone has contributed to a large portion of the unemployment rate in China. One Chinese citizen particularly illustrates the decline in entry level positions, I used to work in a factory making flash drives for 1,600 yuan a month," she said. "Now I'd be happy to get 1,200 yuan. Before I came here, I was offered a job for about 700 yuan a month at a shoe factory in another city. I can't accept that. I'd rather go home.

In contrast to the vast majority of the population in Asia, the wealthy are taking advantage of the economic crisis in the United States. Asians are visiting America and taking real estate tours around areas which houses are worth significantly less than the usual price. One Chinese citizen stated, “The price of the house, he said, was $1 million, compared with $1.3 million before the crisis in early 2007”. Just like this man they use these homes as an investment as their value is sure to increase within the next 5-10 years. Chinese buyers seek both housing real estate and commercial real estate. This purchase of American real estate is a testament to the changing relationship between the United States and China. It is clear that China’s economy has generally enjoyed a period of immense growth and power. However the collapse of the US economy has certainly caused many of the current economic problems in China.

The world anxiously awaits and watches to find out whether the United States will regain their immense power hold as the strongest country. If other countries follow the lead of Asian countries, it is possible that global relationships will change drastically.