Play store
Eminent economist Prof Rehman Sobhan has said the influence of Western countries on the global economy is declining as economic power is increasingly shifting towards Asia.
He made the remarks on Saturday at a session titled “The New International Economic Disorder” at the Bay of Bengal Conversation in Dhaka.
Sobhan said Asia’s growing competitiveness in goods trade has created significant economic surpluses in the region, while new sources of capital have reduced developing countries’ dependence on Western aid and investment.
He said China has emerged as a major source of official aid and loans for many countries, a role previously dominated by the United States and Western Europe.
He also noted that Asian countries are increasingly trading with one another, with China now the largest trading partner of many countries.
According to Sobhan, the rise of Asia has prompted some Western powers to use tariffs and market access as strategic and political tools.
He argued that pressuring countries to buy goods or invest in certain markets represents a shift away from competition in the marketplace.
He said the trend showed a return towards what he described as a “colonial model of trade”, while the World Trade Organization has become increasingly marginalised.
Sobhan said Asia’s emergence as the centre of the global economy would continue despite such measures.
He noted that China had already surpassed the United States in terms of purchasing power parity and could eventually overtake it in nominal GDP as well.
He also highlighted opportunities for Bangladesh from Asia’s economic rise, saying the country needs to become more deeply integrated into Asian value chains.
Bangladesh’s geographical position between major Asian economies such as China and India could provide additional opportunities for trade, investment and connectivity.
Sobhan said Bangladesh needs stronger strategic planning and, more importantly, effective implementation to take advantage of the changing global economic landscape.