Beyond Factory Asia

Book excerpt: Asia’s phenomenal growth over the past few decades has been driven by the rise of Factory Asia. However, the global financial crisis and uncertain growth prospects in the United States and the eurozone have dampened demand for Asian exports. At the same time, rising wages threaten to erode the cost advantage that the region once had, managing supply chains has become more complex, and new technologies are transforming manufacturing. How can regional economies move beyond Factory Asia? What strategies can Asian economies pursue to meet these challenges? This monograph will examine a range of policy, institutional, legal, and regulatory issues relating to reforms that will drive Asia’s economic and social transformation in its quest for a new Factory Asia model.