Asia's Inequitable Growth

   Over the past few weeks, I have read several articles dealing with the current economic status of Asia, all of which have said that while the economy is declining, it is not as bad as it could be. However, the article that I found today, is claiming otherwise. The article is alleging that with the substantial increase of economic growth that East Asia has seen over the last half-century the entire global economy has experienced a shift. At first, most economists were predicting that it was going to be characterized as a ‘growth with equity’ meaning that there would be an equal distribution of income throughout the population. But as things began to spiral out of control, a new theory emerged. The theory of growth with inequality. This theory explains what has currently been happening with the economy and the recession.  Along with the emergence of this theory, there is a notable gap in the equality of the social classes. This has been especially evident in China. China experienced the world’s fastest economic growth to date, when it went through it’s free-market transformation, but today it is one of the most spectacular examples of the growing income inequality.

   I think that the most important thing about this entire article was the fact that it stated that this type of inequality is going to create strain on the democratic institutions that are in place. I also think that this affects not just Asia, but the rest of the world, they play such a big part in the global economy that if they are facing that type of inequality, we will undoubtedly feel it too.