The Price of an Emerging Asia

            While newscasters and economic experts predict the rise of China’s economic might, it is commonly assumed that the transition to global dominance will be flawless. However, the growth in Asian countries brings new promises and challenges to an emerging younger generation.

            25-year old management consultant Nicol elaborates, “There are only some pockets of growth left in the world and Asia happens to be one of them.” The economy of East and Southeast Asia is growing at a rate of 7% each year. These figures easily trump the recession-laden Europe and United States. Wages are increasing 8% yearly compared to 0.6% growth in the developed world. The statistics are especially friendly to younger people. Youth unemployment has been below 15% throughout most of the region for the last five years. In many European economies such as Italy and Spain, the unemployment rate of youth is over 30%.

 

            However, the seemingly pristine economic climate of Asia does not come without its repercussions. The increase in economic stability has given young people more pressure from previous generations to succeed. Younger Asians are now confronting problems that were unexpected in their parents’ time. The cost of living is increasing more rapidly than the wage growth. Compounding the problem is an increasing competitiveness for jobs. These processes prohibit the upward mobility that young people crave. These processes create a mass desire to move away from urban centers in order to avoid the social and economic stagnation. Many young Asians are left desperate for jobs. Those with jobs only hold entry-level positions. An emerging “working poor” (earning under $1.25 a day) class emerges as a result. Though the employment rate is improving, the wages are not adequate compensation to improve living conditions. The challenge for modern Asian governments is to manage the expectations of the new generation. If they choose to ignore the plight of young, the governments will feel the anger of three-fourths of a billion citizens.

-Drew Mades

http://www.bbc.co.uk/news/business-15532821