Geopolitics of Asian Countries: Culture and Regional Economy of Asia

GEOPOLITICS OF ASIAN COUNTRIES

CULTURE AND REGIONAL ECONOMY OF ASIA
Ignacio Mendivelso Bernal / Translation and update: Johana Paola Hoyos
AUTOR:
Jiménez

INICIO
1. Geopolitics of Asian countries

1.1. The geopolitical importance of Asia
1.2. New International Order
1.3. Recognition of international power
1.4. Strategic position in Central Asia
1.5. Southeast Asian origin term
2. New economies of continent
2.1. Azerbaijan
2.2. Iran
2.3. Russia
2.4. United Arab Emirates
2.5. Turkey
3. Culture and economy of Asia
3.1. Competitiveness of Asian economies

2
2 POLITÉCNICO GRANCOLOMBIANO
THEMATIC
1. Geopolitics of Asian countries
1.1. The geopolitical importance of Asia
Western society, even today, is not fully aware of the cultural and historical wealth of the East.
When Europe was in the Iron Age, China was already a consolidated empire under the Han
dynasty and India had several centuries with Vedic culture. Such is still the ignorance towards East
that for some is still unknown that two of the fundamental pillars of Western development of the
modern age, such as gunpowder and printing, were already dominated the East for several
centuries earlier.
It is after World War II when it begins to perceive "The East" as more than a stage of colonization.
India's independence in 1947, and the establishment of the People's Republic of China in 1949 or
Japanese resurgence as an industrial and economic power, represent the slow awakening of this
hemisphere for its formation as fundamental axis of the current geopolitics. Likewise, this region
became one of the main scenarios for the operations of the Cold War, with catastrophic events
such as the Korean and Vietnam Wars. In recent years, the Eastern stage begins to emerge as the
essential space where the main economic, social and political events of the coming decades will
be developed.
Old Europe, immersed in a demographic stagnation and gradual aging process, loses demographic
weight rapidly. Recent economic and global financial crises, the most negative effects especially
shake Europe and the loss of political weight on the international scene, are other reasons for
understanding the beginning of new centers of influence and decision. This latent reality in Asia
in recent decades, contemplates an increasingly globalized world, where communication and
trade in real time from anywhere on the planet is an everyday thing.
CULTURE AND REGIONAL ECONOMY OF ASIA 3

1.2. New International Order
The construction of a new international order and the influence that has the Asian continent is
undeniable. This issue is important to analyze some global dilemmas, such as encouragement for
defining a shared agenda globally, to guide the creation of global governance structures to a new
growing Asian international order. It is also necessary to understand currently regional
perspective, analyzing the most significant events in the different regional contexts, and the
relationship of Asia with the rest of the world and the impact that may result from the conflicts
developed in this region.

Figure 1. Asia map
Source: dikobrazik (s.f)
4
A first check is the strength of Asian growth, which was strengthened from the economic crisis
and the slowdown in developed economies. Also expanding the G-‐8 to G-‐20 appears as a symbol
of the need to incorporate to the BRIC and other emerging states in defining the guidelines of the
global economy. Moreover it is evident how acquired increasing importance of South-‐South
dynamics in international relations, particularly among Asia, Latin America and Africa, which
represents a new relationship and a great potential for redistribution of power and global
resources.Regionalization processes seem to gain momentum, with projections to generate a
unified response to major crises, proliferating behind global dynamics. These dynamics take
shape in East Asia, through an unusual approach between China, Japan and South Korea to
promote the creation of an East Asian Community.
Therefore, it is clear that there is a growing Asian influence, symbolized by the rise of Chinese
investments abroad. In relation to Asia, countries in South Asia, Southeast Asia and the Pacific
experience and changes in its internal configuration and its international role. In South Asia, India
notes with concern as China takes positions in its direct environment.
In another scenario, democracies have a good time in Asia-‐Pacific, thanks mainly to its
development in South Asia, where it has instituted in Nepal, Maldives and Bhutan. The arrival of
the opposition to the government in Japan, Australia and New Zealand is also a good sign for the
most consolidated democracies, as well as the holding of general elections in India and Indonesia.
Historical events support the fact that the proliferation of democracies decreases the possibility
of the outbreak of conflicts between states.
However, in Asia-‐Pacific continue proliferating internal conflicts, which since 2009 are due mainly
to the exclusion of political power of some religious or ethnic minorities. In view of the
proliferation of such conflicts, which cause violent acts due to the multiplication of insurgent
groups. It is possible to think that the defeat of the guerrillas could lead to various governments
facing high insurgent activity (such as Pakistan or Philippines) to give prominence to the military
solution of the conflicts.
Another element that emerges from the various analyzes is the important role of the military in
many Asian political systems, starting with a common denominator in political processes, as in
Pakistan, Sri Lanka, Bangladesh, Fiji and Iran.
Conflicts in Afghanistan, Palestine and Iraq have generated course various barriers to the
consolidation of this international hegemony and violence in these countries has begun to
destabilize neighboring countries, insurance will remain a key challenge for international security,
consequent implications of this for various security agencies worldwide.
Likewise, there are setbacks in the processes of open dialogue with North Korea that have not
been consolidated and are a fear that may worsen in the near future and change thereby the
geopolitical balance of these two very crucial regions for current international relations such as
the Middle East and Asia.

1.3. Recognition of international power
Understanding the evolution of this new ranking of world powers is simple, just look at the weight
that some of the countries in the region (China, India, Japan or Russia), play and demand in major
international organizations. The composition of the group of permanent members of the United
Nations Security Council is not consistent with the times and remains anchored to what the world
was in 1945, so far only China and Russia are permanent members.
The Cold War and the bipolar world are part of the past and the influence of nations with nuclear
capacity has been reduced significantly. Of the five permanent members, three of them (France,
UK and Russia) continue to assign them an important role that no longer deserve for their loss of
international weight (although they still retain a relative influence within the group of first order
powers). Only two (US and China) continue to maintain a large weight in the international scene.
Asia's potential does not lie in its political influence or its military capacity (although they are two
increasing factors) but in their models of competitive economy. China and India, are the two
countries that best exemplify the Asian development at the beginning of the 21st century, base
their power on their incredible demographic weight. Between the two nations account almost
40% of the world population, representing a colossal amount of labor, essential piece to begin a
process of industrial development as they have been experiencing in recent decades. To this we
must add the relatively high qualification of such labor, if we add that such labor is very cheap,
make these two economies in models of competitiveness against countries that until now were
considered economic and industrial powers worldwide.
Thus, the Asian influence on the global stage are gaining weight rapidly. Economic growth in
emerging Asian powers allow them to play a leading role in the geopolitical context of the 21st
century. Increasing economic and political power of these nations will lead to assume a number
of challenges that will test their leading role on the global stage. However improving the
socioeconomic conditions of the population and respect for human rights and a more egalitarian
social policies should be treated in their respective agendas sooner or later, if they do not want
to face serious instability within their borders .
1.4. Strategic position in Central Asia
The division of territory continents world is not enough for detailed study of certain areas of the
planet. Therefore, the world is divided into several regions or sub-‐regions, accepted and
differentiated by the United Nations Organization (UN). One of these regions of the world is the
area of Central Asia. Located between the Caspian Sea and the western border of China, this
region, formerly known as Turkestan; It currently consists of five former Soviet republics:
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
6
Unlike other regions such as Southeast Asia, which are overcrowded, the area of Central Asia has
always been known since the days of the Silk Road, as a depopulated and used mainly in passing
region. Although agriculture is the basis of the real economy for the people living in that region,
those lands also have much more important than agricultural resources, as it is an area rich in oil,
gas and jade mines.
In Central Asia, although most of the population still subsisting on pastoral and agricultural
activity, governments have understood that economic growth and development are based on its
ability to export raw materials. That is why the governments of Central Asia want to break away
from the traditional image of nomads and farmers, to become potential exporters of global
importance.
With regard to oil and gas, the closest countries to the Caspian Sea are the ones which benefit
from the deposits. The oil reserves of Central Asia are estimated at 50,000 million barrels.
Kazakhstan has 3.2% of world oil reserves and Turkmenistan 8.7% of gas reserves.
On the other hand, apart from gas and oil, the area of Central Asia is rich in mineral resources;
Kazakhstan is an emerging country in the export of these raw materials. It has 30% of world
reserves of chrome ore, 25% of manganese and 10% of iron. In addition, Kazakhstan is the third
largest producer of titanium and the largest producer of uranium in the world. Likewise,
Kyrgyzstan is carrying out a reform of the mining industry and in 2012 granted over 500 licenses
to companies to exploit its mineral resources. Therefore it is evident that in Central Asia, countries
have already realized the wealth under their land, and are excited about the opportunities offered
by free trade and the market economy prevailing in the world.
1.5. Southeast Asian origin term
The term (Southeast Asia), is of recent origin. The subregion was conceived during the Second
World War in geopolitical and military term by the allies, who faced the challenge of beating the
Japanese who had taken over that area. Thus, the new term began to acquire political
connotation and emerged as a stage for diplomatic action and object of scholarly attention,
understanding as residual category the countries and Asian territories located to the east of India
and south of China.
Before colonization by European powers, this region had maintained a so-‐called international
political order (mandala) a more flexible and less structured social and political set than
traditional Westphalian system conceived in the West. The mandala system consisted of a series
of relationships organized as concentric circles, where the real control was exercised by the
Monarchs (first circle); princes, other lords and vassals (second circle) and the peripheral areas of
their kingdoms (third circle). The fundamental basis of this system was to avoid conflicts and
achieve consensus building.

With European colonialism was fundamentally altered the regional order, Asian trade networks
tended to disintegrate and the borders established by colonial powers reflected power relations
between them. From the Japanese conquest in 1942 in that region, an anti-‐Western regional
awareness was stimulated, which was rivaled by the United States with the creation of Southeast
Asia Command and the subsequent disclosure of the term among academics, who began regional,
political, economic and cultural studies in universities and research centers.
2. New economies of continent
The currently existing global imbalance between high-‐income countries and middle and low-‐
income countries. it is certainly compensated not only by the rapid growth of China, India and
several Southeast Asian countries; but also by the admirable performance of a group of (new)
economies in the regions of East, Central and Southern Asia. Projected in the medium and long
term as Transcendental countries, thanks to the valuable resources they have, the favorability for
attracting investment, infrastructure projects and the various opportunities for business
2.1. Azerbaijan
It is a country of high economic growth, which for the last ten years has seen a significant increase
in exports of oil and gas; likewise, some sectors not traditionally exporters benefited from a
double-‐digit growth, including construction, banking and real estate. It is intended that the
changes in the oil sector will be driven primarily by public investment. Oil exports through the
“Baku-‐Tbilisi-‐Ceyhan” pipeline, Baku-‐Novorossiysk pipeline, and the Baku-‐Supsa pipeline, which
remains the main economic engine, but efforts are being made to further diversify the production
of gas from Azerbaijan. Some of the problems presented are the low progress in introducing
economic reforms to the domestic market, private sector corruption and inefficient government
economic reforms, which become an impediment to long-‐term growth. Moreover, it is essential
to strengthen foreign investment in the non-‐energy sector and the search for a definitive solution
to the conflict with Armenia over the Nagorno-‐Karabakh region.
2.2. Iran
Oil is the economic base of this country; the exploitation of its deposits began early in the century
in the region of Khuzistan, and currently focuses on the southeast of the country, in a large area
next to Kuwait and Iraq. Holdings of this important resource for the functioning of the world
economy soared since mid-‐century under various economic forms of exploitation, which reached
from the seventies and eighties maximum production levels. This operation, together with some
periods of currency appreciation, has favored the growth of the Iranian economy (industry) and
a substantial improvement in the standard of living of a traditionally nomadic people (agricultural
and livestock).
8
Oil exploitation, also made from the State or in consortium with British capital, causes the
introduction of heavy industries (such as petrochemicals and steel), and the development of
communications and especially ports with increasing weight within the country's economy. In
recent years, the Islamic authorities launched a development plan; this economic plan expected
to boost the economy through a rapprochement with the West in order to attract foreign
investment, a reduction in the budget deficit and inflation.
At present, Iran is the fourth oil producer, producing more than 5% of total world production.
Similarly, it is the seventh producer of another major power, natural gas, being its reserves second
in global importance. The industry is closely related to this product, which accounts for almost all
Iranian exports. Refining and production of derivative products is one of the most important
activities of the secondary sector, making the city of Abadan the world's largest oil center. On a
smaller scale, but also very important mineral resources are coal, iron and, to a lesser extent,
bauxite, sulfur, lead, copper, zinc, uranium and salt.
2.3. Russia
Russia has undergone significant changes since the collapse of the Soviet Union, from an almost
absolute isolation, by a centrally planned economy and finally to an economy based on market
and globalized. Economic reforms since the late nineties, achieved the privatization of most of
the industry, with notable exceptions in the energy and sectors related to defense. It is one of the
leading oil producer in the world, the second largest producer of natural gas; it has the world's
largest natural gas reserves, the second largest coal reserves and the eighth crude oil reserves.
Russia's dependence on commodity exports makes it vulnerable to cycles of boom and bust that
follow the volatile swings in world prices. The government has embarked on an ambitious
program to reduce this dependency and build high-‐tech sectors of the country, but with few
visible results so far.
The Russian economy was one of the hardest hit by the global economic crisis in 2008, as oil prices
collapsed and external credits that banks and Russian companies requested were over. Russia has
reduced unemployment to a record low and inflation has dropped; it joined the World Trade
Organization in 2012, which reduced trade barriers to foreign goods and services and helped to
explore foreign markets for their local products. At the same time, Russia has tried to cement
economic ties with the countries of the former Soviet space, through a customs union with
Belarus and Kazakhstan, and is planning to create a new economic bloc.

2.4. United Arab Emirates
Traditional economic activities have been harvesting dates, fishing, breeding camels, and
pearling. Since the mid-‐twentieth century, significant reserves of oil and natural gas in Abu Dhabi
and Dubai were discovered. Oil exports account for over 45% of total exports. In addition, the
UAE is the fourth country in the world in natural gas reserves.
Oil has provided the country with a high standard of living, reflected in its infrastructure and its
large architectural projects such as the construction of two artificial islands, the country's
modernization and the high standard of living. It is the third largest consumer of water per capita
per year in the world, after the US and Canada and has a high consumption of electricity. The per
capita income is the second after Qatar in the region and one of the highest in the world.
The proliferation of buildings of high energy consumption in Dubai and Abu Dhabi has urged the
government to take actions regarding environmental protection through the promotion of
sustainable construction. Other sectors where it is investing in electricity and tourism, being this
latter one of the priorities of the government.
The country develops a liberal economic policy and one of its main goals is diversification of the
economy, so it is investing in sectors such as aluminum, petrochemicals and fertilizers. In addition,
other sectors such as food, beverages and snuff are developed; also equipment, paper products,
textiles, accessories and wood products. It also develops aerospace industry, steel and film
industry, as well as the medical and pharmaceutical area, ceramic industry, jewelry and maritime
industry.
On the other hand free zones and technology parks, there are twelve free zones in the country as
Jabal Ali free zone (which exports account for about 36% of total exports of Dubai), which attract
significant foreign investment and is looking to promote the development of small and medium
enterprises.
The UAE made significant investments abroad managed by the Abu Dhabi Investment Authority,
mainly in the field of transport, telecommunications, real estate and portfolio.
10
2.5. Turkey
It is a market economy, addressed by its industrial and service sectors, although traditional
agriculture still accounts for about 25% of employment. Developing an aggressive program of
privatization that reduced state intervention in basic industry, banking, transport and
communication, and an emerging group of middle-‐class entrepreneurs has injected dynamism to
the economy with the expansion of production beyond traditional clothing and textiles sectors.
Automotive, construction and electronics industries are growing in importance and have already
surpassed traditional in the amount of supply. They are in progress to achieve several pipelines
to transport gas from Central Asia to Europe through Turkey.
After a severe financial crisis experienced at the beginning of this century, the government passed
a group of financial and fiscal reforms as part of an IMF program. The reforms strengthened the
economic fundamentals of the country and marked the beginning of an era of strong growth.
Moreover, despite the financial crisis, this country managed with a strict fiscal policy, well-‐
regulated financial markets and a financial system, facing successfully with this difficult stage.
However, the country remains dependent on foreign investment often volatile in the short term
to finance its trade deficit, which is considerable.

3. Culture and economy of Asia
3.1. Competitiveness of Asian economies

Figure 2. Dragon
Source: Anan Punyod (s.f)
Competitiveness is a notion with many definitions; however, for Asia this term has become a
cornerstone that helps boost productivity. So far, the most competitive Asian economies
worldwide are Singapore, China, Japan, South Korea, Hong Kong, Taiwan, Malaysia and Thailand.
In a internally categorization, in a first group Singapore, Japan, Korea and Hong Kong are
identified, which enjoy high levels of institutional capacity (ie, adequate regulatory frameworks
for economic activity and efficient government apparatus) and high standards of sophistication
of business. This allows them not only to be the most competitive economies in Asia, but to be a
highly suitable for the creation of new businesses and attracting multinational companies existing
space. Next, Taiwan is characterized by a strong presence of professionals in the labor market, a
feature that is complemented by the existence of numerous training programs in high value-‐
added industries. A strong work structure that ensures high levels of productivity with constant
training programs. It is important to mention that despite being a relatively small economy has a
large number of high-‐tech industries such as manufacturing of microchips and semiconductors.
12
A second group is composed by Malaysia and Thailand, countries with a highly efficient labor
structure accompanied by sophisticated financial systems that manage large dividends for
domestic and foreign savers.
Then there is the case of economic power, China. This country has very competitive levels in terms
of public infrastructure necessary for economic activity. In addition, China has a very stable
economy complemented with a market of goods and highly efficient services. This allows
generating adequate conditions for attracting investment. However, probably the most favorable
to this country is the size of their markets. China is a very competitive country because it is
extremely attractive for companies looking for a place where to produce export goods at low cost,
and companies looking for entering into the Asian market
3.2. Culture and values that guide the economy in Asia
A key reason that inspired the introduction of the theme of Asian values by political leaders from
Asia and especially those in Southeast Asia has been the firm belief that the countries of this
region have a unique way of life. The essential features of this Asian way are a combination of
Western economic model and the Asian cultural tradition.
The idea of the Asian mode is based on the pursuit of unanimous consensus; this idea differs from
the West, where the powers make decisions without reaching a consensus with the weaker
countries. This practice was consensual since its inception in the dialogue, consultation and
rejection of public confrontation. In other words, all policies seek always be agreed unanimously
by the members so that meet the diverse and sometimes opposite interests. This characteristic
process has many traits of Asian culture; orderly and very respectful of the wishes of each of the
parties, it means that never a party wishes take precedence over those of the community.
What intellectuals in Asia Pacific have attempted has been an effort to define their own personal,
social and national identities that allow magnifying the sense of self-‐esteem in a world where
their ancestors unconsciously accepted the fact that Asians were inferior beings within Western
universe.
The importance of the theme of Asian values has settled in the complex process of regeneration
and rediscovering aimed at achieving the revival of Asian societies in terms of their cultural
backgrounds.

3.3. Asia and the world economy
The major economies of the region, China and India as a whole are large enough to be larger than
the US in just a few decades; China is already the second largest economy in the world. The
enormous dynamism has been further evidenced by the relative speed and success with which
these economies have been able to deal and get out of financial crisis. For this reason, it is
essential to analyze, first, the dimensions of the crisis economies of Asia and the entire global
economy, which increasingly shifts its center of gravity to this region. Secondly, to study the
relationships of trade as an engine of development and, because of this, the strategic competition
for raw materials, in which China and India play a vital role.
The global economic crisis, which affected the entire global economy, has had little impact on
Asian economies. Moreover, it appears that Asia, and China in particular (in conjunction with
other Asian economies), is leading the overall recovery process. This is no surprise when
considering that since the Asian and Russian crises of the late nineties of the past century, the
growth rates of most economies in Southeast Asia and East and South Asia have been moving in
the category "sustained and very high". Chinese and Vietnamese economies highlights that have
experienced the same growth path of intense and protracted in time that has maintained an
uninterrupted way since the early eighties. Currently, it is the growth of the large Asian economies
and economies in developing countries like China (the "dragon") and India (the "elephant"), who
is pulling the growth in the region with greater intensity since the Japanese economy stagnated
for over a decade.

Figure 3. Indian elephant
Source: frescomovie (s.f)
14
The rapid growth of China and India has caused some concern among Western economists and
in particular among policy makers: for its rapid growth, level of foreign direct investment (FDI),
its commercial expansion and its growing consumption energy and other basic commodities. All
these factors point to an increase in the importance of southern and eastern Asia, and there are
many who fear that it may come to affect the "balance" of the world economy that existed before
the global crisis. Anyway, instead of being the current phenomenon as "destabilizing" it could be
otherwise, since the growing importance of Asian economies would partially correcting an
imbalance generated earlier in the global economy and even, with its dynamism, they would be
helping to speed the recovery.
Currently, the export growth of the OECD (Organization for Economic Co-‐operation and
Development) economies is coming more from Asia than in industrialized countries themselves.
So far, the global economic power has been dominated without exception, since the mid-‐1880s,
Europe and the United States, a binomial that Japan joined after the strong recovery experienced
during the second half of the twentieth century. In addition to these processes, it is also a shift in
FDI flows, as more and more FDI shifts to these rapidly growing economies, dodging or forgetting
the rest of the developing world.
China wants to ensure current and future energy supplies (such as in Africa). It is expected that
some developing countries and middle-‐income, can become the main suppliers of agricultural
raw materials, either by the growing importance of the livestock sector in China or biofuel
production. China, and to a lesser extent India, will continue to have a good performance in
economic growth and exports, possibly to the detriment of the countries weaker development,
while high-‐income countries can benefit substantially from growth "Elephant" and "dragon",
rather than feel threatened by them, at least in the short and medium term.

GLOSSARY
TERM DEFINITION
ARCHIPELAGO Chain of islands such as the Japanese Islands and the Philippines
Major religion in Southeast Asia that believes in reincarnation,

BUDDHISM
karma, and nirvana, founded by Siddhartha
GANGES RIVER River that flows through northern India into the Bay of Bengal and is
considered sacred by Hindus
GOBI DESERT Desert in Western China that is in the rain shadow of the Himalaya
Mountains
HIMALAYA Mountain range that separates India from China that includes the
MOUNTAINS tallest mountain in the world, Mt. Everest

HINDUISM Major religion in India that is polytheistic, believes in reincarnation
and karma, and the idea that everyone as a soul called atman
OPEC Economic organization that controls the price and production of oil
in the world
MONSOON Wind pattern that brings rain to parts of Asi
RAINFOREST Forest that grows in a tropical wet climate zone and has broadleaf
trees
RING OF FIRE Area around the Pacific Ocean where many tectonic plates meet
causing more earthquakes and active volcanoes
TAOISM Religion that developed in China that believes in balance and action
through inaction
16
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5987
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• Nathan A. The China-‐Pakistan Axis: Asia’s New Geopolitics. Foreign Affairs [serial
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Ipswich, MA. Accessed October 20, 2016.
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spx?direct=true&db=aph&AN=110452813&site=ehost-‐live
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GEOPOLITICS OF ASIAN COUNTRIES

1. Geopolitics of Asian countries

1. Geopolitics of Asian countries

1.1. The geopolitical importance of Asia

CULTURE AND REGIONAL ECONOMY OF ASIA 3

Source: dikobrazik (s.f)

CULTURE AND REGIONAL ECONOMY OF ASIA 5

1.4. Strategic position in Central Asia

1.5. Southeast Asian origin term

CULTURE AND REGIONAL ECONOMY OF ASIA 7

2. New economies of continent

CULTURE AND REGIONAL ECONOMY OF ASIA 9

CULTURE AND REGIONAL ECONOMY OF ASIA 11

3.1. Competitiveness of Asian economies

Source: Anan Punyod (s.f)

CULTURE AND REGIONAL ECONOMY OF ASIA 13

Source: frescomovie (s.f)

CULTURE AND REGIONAL ECONOMY OF ASIA 15

Major religion in Southeast Asia that believes in reincarnation,

List of figures

CULTURE AND REGIONAL ECONOMY OF ASIA 17

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