The Asia Pasific is Economically, The Faster Growing Region Globally, Do You Agree?

Introduction

The Asia-Pacific region includes nations bordering Australia, East Asia, Southeast Asia, and the Pacific Ocean (Oceania). Despite the lack of a precise geographical definition, the phrase "Asia-Pacific" came into usage in the 1980s when the economic growth of this diversified region in terms of stock trading, general trading, and other sorts of economic and political communication became a topic of discussion (Louis & Steven, 1995).

The economic growth rate around the world is changing quickly. Economic development has spread to every part of the world and is no longer limited to Europe and America. In reality, markets, investments, and industry are geared toward continents like Asia, Africa, and the Pacific. 

Particularly in the Asia-Pacific region, economic development is moving quite swiftly. After World War II, the Asia-Pacific region had exceptional economic expansion over a vast area. 

The region has appeared to have a growing regional economy in recent decades. The expansion of regional internal dynamics and connections with other regions enhances capital accumulation and development. 

This essay will examine the worldwide economic growth potential of the Asia-Pacific region. The author confirms that economic expansion in the Asia-Pacific area can counterbalance the expansion in Europe. The two factors of bilateral collaboration among non-governmental organizations with every states and foreign investment in the Asia-Pacific area that drive economic growth will be examined in this essay.

Bilateral Relations of Asia Pacific Countries and Non-Governmental Organizations

Since 1967 till the present, there have been upwards and downwards in the economic growth of the Asia Pacific. Additionally, bilateral cooperation between nations in the Asian region and with interregional non-governmental organizations is used to identify economic growth and development concepts. 

These development concepts, which were developed from the 1960s until 1978 and were separated into three main phases, served as the foundation for numerous international non-governmental organizations and conferences that continue to this day to promote stable development and economic progress (Minardi).

First, from the beginning of the 1960s until 1967, Japan made all of the initial attempts to establish development concepts and cooperative mechanism schemes in the Asia-Pacific region. The idea was originated by Morinosuke Kajima, a businessman and LDP politician from Japan, and was later moved to a concept of collaboration that was subsequently utilized to promote interregional integration. 

Furthermore, Japanese economists like Kiyoshi Kojima and Saburo Okita have carried out studies and research on regional economic cooperation that are manifestations of Kajima's views (Minardi). This is what entices industrialized nations in the Asia-Pacific region to take seriously the concepts of economic development, which can then be achieved in tations of Kajima's views. 

This is what entices industrialized nations in the Asia-Pacific region to take seriously the concepts of economic development, which can then be achieved in Japan, the United States, Australia, Canada, and New Zealand conferences at the JERC (Japan Economic Research Center) conference. The Pacific Free Trade Area (PAFTA) was founded in 1965 as a result of this conference. 

Following the creation of PAFTA, the Japanese government started to share development concepts with the Asia-Pacific area. This sparked the emergence of various significant concerns as well as the formation of a conference platform on foreign investment, commerce, and bilateral cooperation.

In the decades 1968 through 1997 The chances for expanding economic cooperation toward internationalization in the Asia-Pacific region from 1968 to 1977, however, were limited to the academic realm. This year's conference development has received more attention because it is necessary to develop the economic system between nations in the Asia-Pacific area. The Ministry of Industry and International Trade (MITI) and the Institute of Developing Economies collaborated to publish a series of research on the Pacific region's economy in the same year (Asian Economic Integration Report, 2017).

In the third era, specifically the 1980s. This year marks a new phase in the growth of the concept of economic cooperation in the Asia-Pacific area, which is then characterized by high relevance at the level of both governments and national policies.

This demonstrates how eager Asian Pacific nations are for globalization and economic internationalization—both developed and developing nations—and how this presents a challenge to European nations in the business sector (Minardi). 

The Asia-Pacific Economic Corporation (APEC) was established in 1989 and has 12 members from the Asia-Pacific area, including the six ASEAN nations, Australia, Japan, Canada, New Zealand, Korea, and America. At the time of its establishment, Australia's Prime Minister, Bob Hawke, served as its chairman. Union. 

The main driver of APEC's influence on the private sector is how the region's cooperation extends beyond the official framework between nations and governments. AFTA, NAFTA, and other types of bilateral and regional cooperation, such as the "Growth Triangle" made up of Indonesia, Malaysia, and Thailand, were all born out of APEC (Kakuzu, 1999). 

Of course such an agreement will bring profit and economic growth with various very good cooperation within the Asia Pacific region and in the subregion of the Asia Pacific region itself (Richard & Waterbury, 1990).

From APEC's inception to the growth of private sector collaboration in the form of transnational corporations and those that merely take the form of trademarks or Pranchise. Despite this, there is still a chance and justification for the economies of the Asia-Pacific area to expand significantly, be much more stable globally, and be able to compete with those of Europe and the Middle East (Richard & Waterbury, 1990).

Foreign Investment In Asia Pasific Area

In both developed and emerging nations, foreign investment has become substantial. Since 1994, when the APEC Summit was held in Bogor, three key agreements—liberalization, investment, and development—have emerged as the foundations of progress for sustained economic growth and development. 

This is what pushes nations around the world—especially those in the Asia Pacific—to expand foreign investment through the development of digital technology, tourism, and numerous internationally recognized product brands. 

One of the causes of the crucial significance of Foreign Direct Investment (FDI) is because the proceeds or profits from foreign investment or foreign investment are used to facilitate sustainable development, increase economic growth and transfer production of digitalization of technology and some shares of multinational companies (Safira, 2010).

For the Asia-Pacific region to catch up with countries in Europe and the Middle East in terms of economic growth and sustainable development, foreign investment, also known as foreign Direct investment (FDI), is seen as a crucial component. By opening up free markets, boosting the tourism industry, and enhancing the globalization of local items or domestic brands, foreign investment is thought to be a very fulfilling alternative method of developing a much stronger economy.

The CEEC (Central Eastern and European Country) region benefits from the concentration of all economic income advantages from foreign investment in each nation's capital city area, which in turn enhances the region's economy and development. 

The Asia-Pacific region, on the other hand, has a desirable benefit in that there are numerous foreign investment opportunities that result from income from its geopolitical and geoeconomic conditions. 

The Asia-Pacific Region uses things like this to look for profitable chances in distribution goals, economic-political cooperation, and company expansion. It was established in the 1980s that the Asia-Pacific region's economy grew quickly, which attracted a significant number of foreign investors to invest in their businesses and build their operations there. 

Another piece of evidence came in 2019, when the Asia-Pacific region surpassed the previous year's prediction of 5.6 percent growth to become the region with the highest growth at the top of the global economy (Asian Economic Integration Report, 2017).

Conclusion

It is not just a boast to say that the Asia-Pacific region's economy is growing quickly and can keep up with that of the Middle East and Europe. This has been the case since the decade of 1967, when economic theorists first started slowly conducting academic activities in Japan. 

When the world started to experience changes in extremely rapid economic growth, it was noticeable that Europe and America were no longer the only centers of global economic progress and that it had instead spread to all regions of the world, including the Asia-Pacific region, which has its own distinctive characteristics. 

The economic growth expansion goals carried out by APEC (Asia Pacific Economic Corporation) at a high-level conference held in Bogor eventually led to the three pillars of the Asia-Pacific economy, namely Liberalization, Investment, and Development. Bilateral cooperation that takes place in the Asia-Pacific region and regional organizational bodies in the economic sector is a manifestation of this. 

Following the meeting, numerous regional and subregional alliances were formed, including AFTA, NAFTA, and the Growth Triangle, which can drive very rapid economic growth through business partnerships in the tourism sector, economic expansion, and technological digitalization.

In addition to the advantages of the successful bilateral collaboration that takes place in the Asia-Pacific region, this region also offers a special geoeconomic situation supported by geographical circumstances that attracts many foreign investors. This is what leads the author to concur that the Asia-Pacific region's economic growth has accelerated to the point where it can now compete with that of Europe and the Middle East in terms of global economic dominance.

References

Asian Economic Integration Report. (2017). Manila: Asian Development Bank.

Kakuzu, H. (1999). Growth Triangles in Asia A New Approach to Regional Coorperation. Working Paper no. 9. Politics and International Relations Series 1999-03.

L, L. L. (1951). International Organization.

Louis, J. C., & Steven, L. S. (1995). The International Politics Regions.

Minardi, A. (n.d.). Asia Pasifik Menuju Sentra Ekonomi Dunia 2020.

Richard, A., & Waterbury, J. (1990). A Political Economy of The Middle East. Westview Press.

Safira, A. (2010). Pengaruh Faktor Ekonomi, Bisnis dan Institusi Terhadap Arus Masuk Penanaman Modal Asing (Studi Kasus 11 Negara di Kawasan Asia Pasifik)).