Asia’s Role in the Global Economy in Historical Perspective

Abstract

A long-term assessment of Asia’s share of global GDP suggests that Asia has now almost reclaimed the role in the global economy it occupied in 1820. By focusing on the experience of key economies in Asia, this paper assesses why the continent’s role weakened between 1820 and 1950 and strengthened between 1950 and 2010. It compares Asia’s role in the global economy in recent decades with that of Europe and North America in the past, to conclude that the resurgence of intra-Asian trade and investment in recent decades sets Asia apart. It concludes that up to 2030 Asia’s role in the global economy will crucially depend on how it participates in international governance initiatives. This will shape Asia’s future interaction within the regional economy and with the rest of the world economy.