Recent global political and crisis has changed the world order, especially with the emergence of China, India, Japan, and the Republic of Korea in Asia, said Prof. Dr. Nguyen Xuan Thang, President of the Vietnam Academy of Social Sciences (VASS).

After the end of the Cold War, the world seemed to be unipolar. But with the emergence of China, Russia, Brazil, and South Africa, the world order is changing, Thang said in his presentation at a talk "New political situation and economic order in Asia" organised at the India Habitat Centre in New Delhi on August 12.

He analysed the implications of political crisis on regional and global economies, saying globalisation has helped many developing countries to grow fast, even keep up with developed countries.

However, the 2008 financial crisis, originating from the US, has spread across the world, leading to a transformation in the global economic structure, from unsteady to a more balanced growth.

The socio-political crisis in North Africa and the Middle East, and most recently the crisis in Ukraine, non-traditional security and climate change challenges have taken its toll on regional and global economies, including in Asia.  

Asia’s economic order is divided into major groups, including key powers (China, Japan, India and the Republic of Korea), emerging economies (China, India), newly industrialised economies, and ASEAN economies.

There is a big shift in the global economic structure. In 2010 China overtook Japan as the world’s second largest economy. Brazil also surpassed the UK, becoming the world’s sixth largest economy in late 2011.

With their economic and financial potential, emerging countries like India, Russia, and Brazil are showing their resolve to re-establish international relations.

Thang noted that negotiations of key free trade pacts are entering an important stage. Trans-Pacific Partnership (TPP) negotiators vow to end talks in 2014 to reach a comprehensive agreement taking into account interests of all participating parties.    

ASEAN and its six partners (China, Japan, the Republic of Korea, India, Australia, and New Zealand) are negotiating the Regional Comprehensive Economic Partnership (RCEP) agreement, aiming to support the establishment of the ASEAN economic community by 2015.

Prof. Thang said India, with its relatively rapid economic growth, strong military and technology potential, and effective ‘Look East’ policy, is expanding cooperation with Asia-Pacific countries.

He forecast that India would become the fourth largest economy in the world in the next decade, trailing behind the US, China, and Japan. India will engage more in security in Southeast Asia, primarily maritime security, and will continue to be an important factor in forming the order of power in the Pacific Rim.

He also highlighted the growing relations between Vietnam and India and said both countries will expand cooperation in various areas, especially economics, trade, education, information technology, infrastructure, management, and training.

VOV/VNN