“`html
World Economic Outlook">
Can AI Be Asia’s Next growth Engine?
Table of Contents
SEOUL – Asia’s remarkable economic ascent,powered by globalization over teh past two decades,is facing a critical juncture. A confluence of factors - from escalating geopolitical tensions to the relentless march of population aging – is threatening to stall the region’s growth, demanding a essential reassessment of its economic model. The question now is: can Asia adapt and innovate its way to continued prosperity?
Lee Jong-Wha,a leading economist,argues that the answer lies in a strategic embrace of artificial intelligence (AI). While acknowledging the significant structural headwinds facing the continent – including stagnant productivity, rising inequality, and the increasing costs associated with natural disasters – Jong-Wha posits that fostering AI skills and building robust institutions to support their request are vital for unlocking a new era of inclusive and durable growth. this isn’t simply about adopting new technology; it’s about fundamentally reshaping the workforce and economic landscape.
The Shifting Sands of Global Growth
The era of rapid global economic expansion fueled by globalization is demonstrably slowing. The IMF’s World Economic Outlook points to a more subdued growth path for the foreseeable future. This deceleration isn’t merely a cyclical downturn; it’s driven by deeper, structural issues.The fragmentation of trade and investment ties, exacerbated by rising geopolitical tensions – particularly between the United States and China – is creating significant uncertainty and hindering economic cooperation.
Population Aging: A Demographic Time Bomb
Adding to these challenges is the rapidly aging population across much of Asia. A shrinking workforce and increasing dependency ratios place immense strain on social security systems and healthcare infrastructure. This demographic shift not only reduces the pool of available labor but also dampens innovation and entrepreneurship,further hindering productivity growth. Addressing this requires not only policy adjustments but a proactive investment in human capital.
AI as a Catalyst for Inclusive Growth
Jong-Wha’s central argument is that AI offers a pathway to mitigate these challenges. By investing in education and training programs that equip the workforce with the skills needed to develop, implement, and utilize AI technologies, Asia can unlock new sources of productivity and economic value. Though, simply acquiring these skills isn’t enough. Equally important is the creation of institutions that foster creativity and enable individuals to apply these skills effectively.
This requires a holistic approach encompassing regulatory frameworks that encourage innovation, investment in research and progress, and policies that promote equitable access to AI technologies. The goal is not just to automate existing processes but to create entirely new industries and opportunities, ensuring that the benefits of AI are shared broadly across society.
Looking Ahead
The path forward for Asia is undoubtedly complex. navigating geopolitical tensions, addressing demographic challenges, and fostering innovation will require bold leadership and strategic investments.
