The Dynamics of Economic Growth

The Dynamics of Economic Growth

Policy Insights from Comparative Analyses in Asia

Khuong Minh Vu

The advancement of a nation from poverty to prosperity is not a technical process but a great transformation. At the center of this change are two driving forces – emotion, which is referred to as aspiration, anxiety, and sense of responsibility; and enlightenment, which is associated with the freedom from dogmatism, open-mindedness, and the hunger for learning. It is these two factors that have determined not only the remarkable success of Asia in economic development but also the uniqueness of its growth model. This book examines the rise of Asia in the past two decades and draws lessons from its growth patterns.

Chapter 5: Sustaining high economic growth in Developing Asia: strategic insights and a catch-up policy framework

Khuong Minh Vu

Subjects: asian studies, asian development, asian economics, asian politics and policy, development studies, asian development, development economics, economics and finance, asian economics, development economics, industrial economics, politics and public policy, asian politics


Developing Asia has made remarkable achievements in economic growth over the past few decades. This success, however, is only an initial step. There remains a large gap to overcome before the countries in the region transform into prosperous nations. Using the income level relative to the US as an indicator of development, in 2010, this indicator was at 13 percent for Developing Asia, 11 per cent for the ASEAN-6, 5 per cent for the SAC-4,16 per cent for China, and 8 per cent for India (Figure 5.1). In addition, Developing Asia as a whole remains a poor region relative to the world average. In 2010, the region’s share in the world population was 53.5 per cent, while its share in the world’s GDP was only 27.8 percent, which implies that the region’s income level was only about one half of the world average (Table 1.1). With the exception of the four Asian Tiger economies and Malaysia, the developing Asian countries, especially the South Asian nations, are notably below the world’s average income level.

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