The winds of recession and financial woes are both blowing and tearing the roofs off of some economies and businesses.America\’s strategic position is in peril.A period of relative peace the world enjoyed from World War 2 up to the 90\’s wasn\’t due to just America\’s military might. Squabbles over markets, expansion of territories to build markets, nations prowling for resources and raw materials had plunged the earth into world wars. Following the last war America began to stand up for and encouraged and helped to foster a world that respected sovereignty, a culture which rewarded work and fair exchange of goods and services. Other colonisers such as France , Spain etc were pressured to de-colonise and GATT was established alongside a stable system of currency exchange.These actions led to huge growth in world trade, finance and banking. Through the 50\’s and 60\’s the US was the dynamo that hastened economic development and many countries bloomed, just grew their economies from US investments.

In the early 1970\’s South East Asia began roaring out of it\’s sleepy past astir with it\’s own economic engines and the word \’tigers\’ fell into the dictionary..These economic waves changed the views and opinions of other nations. China which used to be a troubler and a spoiler slowly realised that shut doors would only lead to stagnation and financial backwaters for herself. Much of the Third World began to rethink their policies and platforms . Once infatuated with social experiments of every ilk, more and more Third World countries began to open their doors to trade and investment. Thus the US became a driver and a catalyst for these countries to slowly move towards modern , more open societies acquiring technological and other skills.

But of late voices out of Washington have been decrying trade imbalance, job losses, budget deficits and a clamour to put up barriers to America\’s markets. This would be debilitating , even fatal and halt the advancement of the free-market oriented developing nations. It would signal that the model provided through the 50\’s and 60\’s that made for peace and growth is no longer an available option and trigger a downward spiral of the world economy. Is America to abandon the contest between free market democracies versus controlled and alternate ideologies? This will have troubling consequences for the rest of the world. For sixty years peace and political boundaries were possible because peoples have achieved a better lot through commerce.If these opportunities are choked, a return to the traditional ways of conquest such as by war will again become more attractive. Protectionism and dwindling trade means less growth for the developing countries. National debts will pile up, defaults will become common with heavy consequences for international trade systems and financial instruments.Developing countries may abandon democratic freedoms and severe and repressive governments may ride in. America has been the anchor of the world\’s free-market economies. It is incumbent upon America as the pre-eminent and sole powerhouse to rein the rules for progress and growth and not to put up tariff and other walls as these would then cause others to retaliate similarly and thus force a replay of past depressions and even a return to wars to settle things.

Commercially an inward looking approach can cause the US billions of dollars per annum particularly as the countries of South East Asia which have come to be called the Asian Tigers embrace every sphere of activity that used to be the domain of the US only. Asian governments hold up to 40% of the world\’s total foreign exchange reserves with the bulk of them in U. S.-dollar assets. But with the emergence of the euro things can change dramatically. Some nations, especially China have begun to switch their reserves from the US dollar to the euro. Estimates have it that up to 1 trillion could migrate from the dollar to the euro. Consider Europe\’s ambitions to a global role commensurate with it\’s economic clout ; it wouldn\’t be long when a huge chunk of the world\’s reserves will be in euro.This European single currency is creating a huge new capital market of great significance for Asia. Fund raising, mergers, acquisitions and corporate restructuring doors have suddenly come flung open and these, Asia feels would be foolish to ignore. As China and India stride onto the world\’s stage , their massive needs for gas, industrial , mineral and agricultural resources will rewire trade networks.They will move on over into the rest of the still quiet world – e.g.Africa etc- where these resources are readily available and spark economic booms in these nations that\’s going to lift them out of their poverty and fill their as of now empty treasuries.

For the man in the street in America one door of abundance and prosperity is to look to Asia instead of weeping over , fainting at sight of or gnashing at hearing of , of every financial prescription back home.It may turn out to be a down payment on your future.

The writer has travelled through Asia , was a manufacturing manager at an F 500 Firm,is now a college instructor and passionately believes in entrepreneurship.More of the reason for the above nudge at :
http://www.sitesell.com/Kuo.html

The writer has travelled through Asia , was a manufacturing manager at an F 500 Firm,is now a college instructor and passionately believes in entrepreneurship.More of the reason for the above nudge at :
http://www.sitesell.com/Kuo.html

Author Bio: The writer has travelled through Asia , was a manufacturing manager at an F 500 Firm,is now a college instructor and passionately believes in entrepreneurship.More of the reason for the above nudge at :
http://www.sitesell.com/Kuo.html

Category: Business Management
Keywords: tigers,protectionism,europe,china,india,asia,dividends,euro