An Investigation into the Financial Robustness of Asia (original) (raw)

Recent developments in the fields of global financial architecture and economic growth have made peculiar impact on Asian markets. They are faced with ever increased opportunities but at the same time, have to overcome certain challenges in order to ensure growth for themselves and contribute to the development of the other economies. These challenges include, but are not limited to, the slower economic growth witnessed by Asian giants such as China and India in recent times due to the continued economic crisis in developed economies, increasing doubts of global investors, burgeoning middle income class and declining exports consequent to the less enthusiastic external markets. This necessitates the urgency to study Asian financial development in recent times and evaluate the needs it currently has. This paper analyses the financial development and economic growth in Asia over past fifteen years. Some of the main findings highlight increasing income inequality and gaps in financial inclusion across various economies of the continent. The research also shows that the progressing transition in the region’s growth prototype from being predominantly investment oriented to one developing an increased reliance on investment as well as productivity growth also emphasises the earnestness for financial development. The research concludes that in order to be benefitted from a robust financial architecture, governments of various countries of the region should pay heed to integrate their respective financial systems with all inclusive structural and policy reforms. This implies that the nations of the region should ensure financial development in a manner which minimizes the risks pertaining to their financial stability and maximizes the welfare in form of regional economic growth.