EAST Asia (also known as the Far East), has become a region with one of the most vibrant economies and business activity; the centre stage of the world’s financial engine. The region has depicted a remarkable growth in infrastructure, trade and socio-economic development, bilateral and multilateral cooperation. It has become one of the major investment hubs of giant multinational corporations, originating from major economies as the US, China and others. The region has one of the busiest ports and is offers enormous opportunities in terms of employment, business and other economic activities. This is the reason it has become the pivot of the political and economic interests of the US and China in addition to other major powers.
Therefore, the region provides a vast space for potential economic cooperation and related initiatives. In addition to the rapidly growing economies, there are the Pacific Island Countries (PIC), which also come under the broad contours of the Asia-Pacific and have a tremendous investment potential along with tourism, educational exchanges, business and employment. These small islands are attracting the focus of US and China, with both the countries trying to influence these tiny island states through economic and political clout. China is already investing in a number of development initiatives and is involved in a number of different aid projects in these countries which include Fiji, Vanuatu, Solomon Islands, Tonga, Tuvalu and Marshall Islands among others.
Exports from these countries have increased by 169% reaching 9.6% billion in the past 20 years. Papua New Guinea has the largest economy among the Pacific island countries, with a GDP of nearly $5 billion. Tuvalu has a GDP of less than $4 million. Overall, Pacific island countries produce a few goods and thus have small economies when compared to the world’s other nations. Due to lack of economies of scale as a result of their small size, they need to establish niche markets, targeting high end products or services. In addition, these countries lack interconnectivity because of inefficient transport infrastructure and dearth of skilled labour; there is a huge ratio of unemployment in these countries prompting the people to seek employment in Australia, New Zealand and neighbouring countries.
As the region is rich in opportunities and has a lot of potential in terms of business and trade, it offers a chance for countries like Pakistan, to come and invest in this diverse environment. In addition, there can be educational and cultural exchanges, tourism and cooperation in the environmental arena. A good example is Fiji having a population of Indian origin which were moved from their homes in India during the colonial era and settled here for sugar cultivation and related chores. Currently it’s their third generation residing in this country, with 6.3% Muslim population, speaking in Urdu/Hindi. This can be one of a major area of cooperation, where these people can be included in development projects, educational and cultural activities, along with business, trade and investment ventures.
Therefore the region offers promising opportunities for cooperation in social, economic and environmental domains, opening new avenues of bilateral and multilateral exchanges. Given the slump in the global economy after COVID-19 and the Ukraine war, this region can be a harbinger of a global economic revival, if all the opportunities being offered are explored and utilized. The PIC’s are currently receiving development aid and hosting development ventures offered by US, China, Australia and New Zealand, however these initiatives are resulting in creating a sense of insecurity and instability in social, economic and environmental domains along with a feeling of dissatisfaction among the indigenous people. This presents a golden chance for the other countries to make their inroads through cultural and economic cooperation which meets and satiates the need of the indigenous, through empowering them and enabling them to stand on their own feet.
Similarly the East Asian countries are also feeling disgruntled by the development projects launched by major powers; this can be the turning point for bilateral and multilateral cooperation with countries in the Middle East and South Asia coming forward to bridge these gaps stemming from the development models of the major economies. Pakistan was one of the South Asian countries to host students from Malaysia and Indonesia in various fields at the university level; even now students from China, Malaysia, Indonesia and some African countries come to study at Bachelors and Masters level in courses related to Islamic Studies. These exchanges can be broadened to include all disciplines.
Similarly a huge number of people travel from Pakistan for purposes of tourism, education, business and employment to various East Asian countries. These exchanges can be further streamlined to inculcate people from industry, academia and government and the scope can also be broadened to include the PIC’s as well. If genuine and sincere policy measures are adopted to augment bilateral cooperation, this region holds bright and promising prospects for socio-economic development and prosperity; the region provides a fertile ground not only to Pakistan but all other countries of South Asia, Middle East and Central Asia. A proper and coordinated policy outlook from these countries towards East Asia and the PIC’s can reinvigorate and recharge the global economy both in the short and long term.
—The author is affiliated with the Institute of Development Studies, at Massey University, New Zealand.
Email: mwaqaranwar87@gmail.com
