Asia-Pacific: a new agenda for the times ahead

The rapid growth of the populous Asian economies provokes profound economic changes and a shift in the balance of power. On the economic front, Asian leaders are confronted with the need to preserve the stability that has underpinned their prosperity, maintain an environment conducive to trade and investments and encourage domestic consumption while avoiding ecological disasters. Internationally, business competition will intensify with the strong presence of Asian manufacturers in global supply chains, growing price competition from Asian firms in domestic markets and global competition for energy, food, minerals and other commodities. Geopolitical concerns stem, in part, from Asia’s global quest for critical resources, conflicting territorial and maritime disputes and increasing military expenditures which affect security dynamics. China’s assertiveness over its periphery prompts an arm’s race in the region and concerns about Sino-American relations even though U.S.-Chinese relations may be less risky than China’s relations with its neighbours. The United States remains a key player in the Asia-Pacific region, with the capacity to alter balances and affect outcomes. Globally, the United States capacity to lead is now diminished and will continue to be so for the foreseeable future. Since no rising power is capable of exercising global leadership, a return to the "old normal" where no one power in geopolitical or economic terms dominates the world is to be expected.