Asian development and the world economy
During the post-colonial era, the relationship between Asia and the world was shaped by a geopolitics in which economics and politics, juxtaposed with history and geography, were closely intertwined. East and Southeast Asia became the main arena for contesting political ideologies—capitalism versus communism—in the Cold War, while West Asia was the stage where strategic interests driven by oil played out. Both were associated with conflicts and wars that shaped trajectories of development. Rapid economic growth in Asia has implications, both positive and negative, for the world, industrialized countries, and developing countries, which are analysed in the chapter. The international economic and political architecture for global governance was created around 1945. Asia had no voice in that process. The shifting balance of power provides Asian countries with an opportunity to exercise collective influence now, but co-ordination and co-operation among them has not surfaced yet, possibly because of economic and political rivalry.