Tuesday, 20 March 2012

Changing World Economic Governance and the New Direction of East Asia’s Economy

Smart Community Model in Japan by using only clean technologies.  

Offshore wind farm in South Korea. Early in recent global recession, the South Korean government determined Green and renewable energy technology would be a key growth engine for the ROK economy. A number of Korea firms quickly embraced the mandate.  

I.                   Introduction
So far the world economy has fully recovered from financial crisis which originated from the subprime problem in the United States (US) at the end of 2007. The US and the European Union (EU) were badly hit by this crisis, leading to a global recession in other areas of the world, especially in Asia. Although recent global economic recovery seems hopeful, but a sustainable economic growth is under question due to the recent Greece’s debt default and possible sovereign debt's crises in other EU countries. Particularly, for Japan, its economic growth rate for 2010 is very low at 1.9% and government’s debt is more than double of its Gross Domestic Product (GDP) in 2009. In contrast, China and other emerging economies in Asia have very high economic growth rates in 2011 and this year 2012.  Furthermore, Japan is facing with some persistent challenges such as aging society, low birth rate, deflation, and a stagnant economy. Climate change is also a global concern and a sustainable economic development is needed by taking into account environmental measures which require international cooperation, for example the Kyoto Protocol. Economic growth is necessary, but a sustainable global climate environment is vital for every country in the globe. In this context, Japan is a leading country which can balance economic development and environmental sustainability, which contribute to a significant reduction of the greenhouse gas emission.