International School of Valbonne TS3 Asia an area of power

Asia: a powerful region of the world

Introduction: Eastern Asia is mainly constituted of islands and peninsulas but also incorporates larger nations such as Japan, China, Singapore or Taiwan. All of these nations are integrated into the Asian and the world economy. It is through the development of Japan that served as a model for the other states that the region has become so powerful today. Exists a sense of solidarity between the different nations of the region, positive and negative (as they all succumb to crisis like the one of 1997) To what extent is East Asia capable of dominating and organising a territory? Demographic assets: D.Eckert said, It is a full world a certain density of world population that is concentrated within this region. Tendency within the East Asian states to see their population settle on the coastal line at the detriment of internal regions of the country. Thus the activities are concentrated along the seaboard (within the countries, the geographic nature of the land is very mountainous thus hard to industrialise). We assist to a hierarchical organisation of the major megalopolises going from 3 to 30 million citizens living within them = a total of 1 billion and 500 million habitants in total. The policy of the only child has limited the development of demographic trends (over 6000 habitants for every km^2 on the Asian coastal borders of Hong Kong and 23,000 in Macao) in comparison we are only 160 on the French Riviera. The demographic trends are relatively controlled today they have stabilized (Asia has finished its demographic transitions). The fertility rates in all East Asian nations are under 2 (the threshold of renewal of a population) that have lead to a massive disproportion between males and females (30 million more boys). But on a more positive note, the abundance of the work force opens up the possibilities for this region of the world. Except for China, all other nations of East Asia posses well-qualified and educated labour. Since 1980, this population have also become consumers creating a large market prospects for the future. Today over 200 million Chinese have the capability to live like Europeans, which is why there is a lot of interests that surround this area. Strong civilisation unity they all share the same ideologies. It is the Chinese civilisation that has influenced all of East Asia, an influence that can be traced back many centuries. Confucianism is the main ideology in Asia and its values are as follows: respect the elderly; respect the group (the hierarchy). Globalized economy: There is a certain economic dynamism that shines on a worldwide scale. We can explain this success by the inspiration of the Japanese model of economy and development. During the period post WWII, the government uses Japans prosperity for reinvestment and introduces industrialisation and starts to exports its goods (benefiting from an open to the pacific ocean). By accepting foreign companies to invest and settle on their land, Japan rapidly became a model of success for other nations of Asia (the FDI foreign direct investment grew rapidly). Japan copied the method of work, the method to manufacturing from the Americans, thus in just a decade, a booming Japanese industry revived (especially in the car

manufactory industry). Then the companies decided to export their production to Europe and the US allowed them to become competitors against other highly developed country. The salaries of the Japanese started to increase, so to stay competitive the industries started to relocate into nearby countries where the work force was cheaper and more abundant (even if the headquarters of the companies stayed in Japan). This lead to the development of the Tigers of Asia = NIC (Newly Industrialised Countries), and this had the effect of elevating the living & working standards of the population (better quality of life). An internal market began to develop and the population became more and more to live like the Japanese. This lead to the relocation again of the industries trying to find cheaper work force same phenomena that lead to the rise of the Tigers of Asia but this time they were baptised the baby-tigers of Asia = new NICs. In all of these countries we can expect a yearly development rate higher than 10% since the 1970s (but lets not forget that 1 billion Chinese still live in precarious conditions). An Extrovert Economy: They have intelligently chosen to build most of their major cities on determined geographical locations along the costal borders pushing them to export and to open to globalisation. As the internal market was not sufficient enough face with the amounts of goods produced, export became very important for survival. Nevertheless as that phenomenon was putting itself in place, the East Asian countries now need raw materials to continue the manufacturing cycles the exports finances the imports. Today there is a fixed strategy towards exportation: only industrial goods and services (HSBC international and very powerful bank). As a consequence: the trade balance exploded. Business is the pillar for these countries and both the EU and the USA buy a lot from them. East Asia receives high FDI rates and for some regions of Asia as Hong Kong, the banks have obtained so many that they have become independent from the state a real source of political and economic power (today, the banks of HK are the only ones in the world capable of loaning money to governments around the world) they have the biggest financial resources in the world. BUT on the other hand there is an alterdependence: if the Triad stops the flow of capitals and financial transactions with East Asia, they would collapse. Another point that we have witnessed in recent years is that now, it is the Japanese and Chinese companies that buy European and American companies (Volvo). Heavy urbanization of the seaboard: With the industrialisation of East Asia we have assisted to the creation of a network of grand ports. Megalopolises have developed around these harbour cities. On the Chinese coast, there is a concentration of power 1980s creation of economic zones opened for the implementation of foreign companies but only in certain areas (= SEZ: Special Economic Zones). Then the Chinese government authorized the implementation of these companies within their territory (mainly around Shanghai). It is through the seaboard that most of the exchanges from Asia to the World take place represent 20% of world exchange and exports (an indicator with a tendency to increase yearly). These harbour cities are brand new, equipped with the most up to date technology (they are adapted to large traffic and a rapidity in execution of imports & exports strategy of opening its borders) and they now play an essential role in the Asias power.

International School of Valbonne TS3 Asia an area of power

An International network of megalopolises: Tokyo has become the most densely populated (30million citizens) and covering the largest surface of territory for an individual city in the world. The citys development followed the American model creation of 5 CBD (central business districts). The city shows signs of NY influence (skyscrapers & fast access routes within the city sign that this city is very young), which makes it even more effective in its growth. A strong unity between the urban cities of East Asia that have embraced the globalisation phenomena. Nevertheless in recent decades, apparition of a new politic: the destruction of entire districts to be replaced by up to date & modern sector. The Asians do not hesitate to pack the population in immense towers (due to the demographic trends of the area). These cities concentrate the wealth and the power of the world tendency to see more and more multinational firms implanting their HQ on Asian soul. Tokyo has the 1st GUP in the world (Gross urban product) had 6 out of the top 15 are Asian cities. What has created their strength creation of multimodal platforms to link together the different cities, a network of international airports, trains and railway. Contrasts in regional development: Japan is on the first place of the podium (a regional locomotive) even if China just recently lost its place as the 1st GDP (gross domestic product) of Asia. Japan = an ancient civilization that has a very stabilized economy and government (they have finished their transition) has become an industrial power (extremely successful) with a strong and powerful tertiary sector. A modern society that has survived major crises (1997) a sign that Japan is a country that can rebound, reinvent itself to survive. Behind Japan comes the three Dragons= NIC (newly industrialised countries) split into 2 groups (South Korea and Taiwan countries that have obtained their independence from the geopolitical reorganisation of the region during the CW). We have assisted to an exploding economy and a HDI (human development index) > 0,9 a level comparable to those of the EU (they have less social inequalities than what any other EU member state has). Littoral China: Chinas costal area is considered to be the grandest workshop in the world. They have a yearly economic development index >> 10% that has given China the ability to become the second most powerful nation in the world (just recently, a sign that goes to demonstrate this point the Yuan trying to take the lead in world currency). Receiving an incredible amount of FDI (foreign direct investment) from the Triad. Nevertheless this growth depends upon the investment of foreign companies and on the internal market that has appeared 200 million Chinese have equal living standards to the oldest members of the EU. On a social perspective, China is still considered as a developing country (much contrast between the industrialised coastal area and the rural interior country). A Controversial Political system: The only truly established democracy can be found in Japan, which rests upon its constitution of 1946 where they set up their parliamentary system in conjunction with the model of the UK. The power is essentially within the hands of the government. Taiwan, Singapore soon to become democratic as they

were supervised by totalitarian regimes in the 1970s and 1980s. The emergence of a free press and of strong labour unions shows the slow evolution in favour of democracy (but the death penalty is still active in these countries). Chinas Dictatorship: The only remaining established communist rule (except for North Korea) where the dictatorial style government concentrates all of the powers (political, economic, juridical & media/press). The minority groups are excluded from the dynamism of the Chinese Tibetans for example, where the communist show their domination by strength. BUT as china opened its frontiers to the world (and to globalisation) they have more or less regulated their economy liberalization of free enterprise, creation of multinational firms but the gov keeps a strict control over what is considered as strategic for China (these are the Banks, tourism, image, war industry etc). What is interesting to note is that the governments from the world do not seem to care of the style of government that China has established (we do not talk about human rights with Chinese officials!) because it has become essential to keep diplomatic and economic relations with them (last visit by the Chinese Hu = 40 billion worth of contract with France)