The economic landscape of Asia has changed profoundly in the past two decades. Regional economies are now increasingly linked, and the region as a whole has achieved remarkable economic prosperity. However, past success is no guarantee of future success. A number of challenges arising from resource scarcities, environmental degradation, adverse demographic trends, rising inequalities in income distribution, and difficulties in coping with globalization may derail the current upward trend in Asian economic development and lead to gloomy growth prospects. This book raises critical issues for developing Asia's long-term development. It provides valuable solutions and identifies key conditions to sustained high growth and to income convergence among the main subregions in the next two decades and beyond. They include increased trade and regional integration through more open trade and investment policies; accelerated investment in hard and soft infrastructure; overcoming resource constraints; improved human resource development; and inclusive growth policies that enhance opportunities and incentives for all citizens. The fulfilment of these conditions will not be met automatically, but will require bold action by regional governments and societies to meet the challenges of realizing the potential for sustained and equitable Asian growth.
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