What Asia should do now, so that the world is spared of another crisis

asia and financial crisisThe crisis came, saw and conquered… but this financial turmoil has left a major scar on the World economy. The way we dealt with businesses, employees, customers all has changed. Our trust in the economy has been skeptical. What seemed more weird to me, is Asia was looked forward to create demand when the world was in utter crisis and now that the clouds have sparkled the silver lining all is not the same in the world view of Asia.

The most important thing about Asia which has become a cliche is that demographically we are younger than the rest of the world. (Though by culture and heritage Asia has an older history but the average Asian is younger as compared to a US citizen). And this is something which I believe is talked about the most but not worked upon. Let me show you the hows and the whys.

The first question, why Asia is important? The answer – Consumption. The Asian economy has strong consumption and this has to now be increased. I recently read a good thought in last month’s Harvard Business article, which says, their can simply be two options. Either Asian countries lead the consumption charts (If at all Japan, India and China are in top 5 when it comes to consumption) or let US and developed countries do the same. The key principal to remember is that cash should float in the market. If the latter happens the average age of consumer and its spending power will be less. And also at the outset of any financial turmoil the cash shelling out of Uncle Sam’s pockets will decline. That will result in decline of World economy to some extent.

So what can be done, so that Asian tigers and dragons actually come forth for the help. 2 things to be precise. Do what you can do best and create an Environment to do so. When this Asian populations grows up – it has to create opportunities, it has to earn and spend, it has to take charge.

So the first requirement is to educate this growing troop. There has to be more leaders, innovators, thinkers and disruptors to come out of this chunk. Education not just with a sense of those white collar MBA titles; but education which is beyond literacy, which has a bigger view of the world economic order. Education also has to catered with respect to how we visualize, what goals we have, what targets we want to achieve. Basically what drives us. Education that changes not just our aptitudes but alo our attitudes. Education that teaches not to dig a well when the house is on fire and not to panic when you see sparks. If these brains are to be the rulers, they better be charged! Education still remains a key concern in most of the developing nations.

The second requirement is making sure what is supposed to happen, happens. Making sure there are right policies in place and they are implemented judiciously. Making sure that this youth gets enough opportunities to challenge its limits. We need to create that environment. India has again locked horns with Pakistan on the 26/11 issues which are yet to be accepted by Pakistan and soon it will be a year gone post this unfortunate incident. China has entered in the territories of India. Srilanka had there recent riots and war like situations when they were combating with their part of terrorism. The tensions of Iraq and Iran seems to be never ending. It seems that the cubs are more ready to kill each other than to turn tigers and rule the jungle. Governments have a very important role to play in this and if the track itself stumbles the journey is bound to fail. Thats why policies are important.

I nowhere believe that whatever can be done has to be done by Asians. World economy can be brought on track by any country. Even countries like Iraq and Iran can be the next growth drivers. But in case if this youth is not nurtured, guided and controlled well, the trends that get set can be counter-productive.

Finally whether they are young entrepreneurs or young terrorists, they are the headline makers in today’s world. Aren’t they?

“When written in Chinese, the word “crisis” is composed of two characters-one represents danger, and the other represents opportunity.” – John Fitzgerald Kennedy. Source thinkexist.com

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