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Outlook on the Global Agenda 2014

  • About this report
    • Introduction by Klaus Schwab
    • Welcome from Martina Gmür
    • Preface by Drew Gilpin Faust
    • Making the Outlook on the Global Agenda 2014
  • Top 10 trends of 2014
    • Introduction
    • 1. Rising societal tensions in the Middle East and North Africa
    • 2. Widening income disparities
    • 3. Persistent structural unemployment
    • 4. Intensifying cyber threats
    • 5. Inaction on climate change
    • 6. Diminishing confidence in economic policies
    • 7. A lack of values in leadership
    • 8. The expanding middle class in Asia
    • 9. The growing importance of megacities
    • 10. The rapid spread of misinformation online
    • In focus: The trends we need to know more about
  • Regional challenges
    • Donald Kaberuka: The cautious optimist
    • Building for the better: tackling inequality, unemployment and corruption
  • Networked thinking
    • Values
    • Employment
    • Interconnectivity, visualised
    • Interactive council map
  • Future agenda
    • The new space race
    • Mapping the future: The technologies changing our lives
    • The future of biotechnology
    • The future of shale gas
    • The future of democracy
    • The future of surveillance
    • The future of the Arctic
    • The future of multinationals
  • Browse by topic
    • Economics and Growth
    • Education
    • Energy
    • Entrepreneurship
    • Environment
    • Finance
    • Geopolitics
    • Governance
    • Health and Well-being
    • Hyperconnectivity
    • Innovation
    • Infrastructure
    • Risk
    • Sustainability
    • Society
    • Technology
    • Unemployment
    • Youth
  • Download a PDF version of this report
  • Download a calendar of 2014’s most significant events
Outlook on the Global Agenda 2014 Home
  • Report Home
  • About this report
    • Introduction by Klaus Schwab
    • Welcome from Martina Gmür
    • Preface by Drew Gilpin Faust
    • Making the Outlook on the Global Agenda 2014
  • Top 10 trends of 2014
    • Introduction
    • 1. Rising societal tensions in the Middle East and North Africa
    • 2. Widening income disparities
    • 3. Persistent structural unemployment
    • 4. Intensifying cyber threats
    • 5. Inaction on climate change
    • 6. Diminishing confidence in economic policies
    • 7. A lack of values in leadership
    • 8. The expanding middle class in Asia
    • 9. The growing importance of megacities
    • 10. The rapid spread of misinformation online
    • In focus: The trends we need to know more about
  • Regional challenges
    • Donald Kaberuka: The cautious optimist
    • Building for the better: tackling inequality, unemployment and corruption
  • Networked thinking
    • Values
    • Employment
    • Interconnectivity, visualised
    • Interactive council map
  • Future agenda
    • The new space race
    • Mapping the future: The technologies changing our lives
    • The future of biotechnology
    • The future of shale gas
    • The future of democracy
    • The future of surveillance
    • The future of the Arctic
    • The future of multinationals
  • Browse by topic
    • Economics and Growth
    • Education
    • Energy
    • Entrepreneurship
    • Environment
    • Finance
    • Geopolitics
    • Governance
    • Health and Well-being
    • Hyperconnectivity
    • Innovation
    • Infrastructure
    • Risk
    • Sustainability
    • Society
    • Technology
    • Unemployment
    • Youth
  • Download a PDF version of this report
  • Download a calendar of 2014’s most significant events

Top 10 trends of 2014:

8. The expanding middle class in Asia

  • Economics and Growth
  • Environment
  • Risk

 

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New-built houses at Dadun village in Hainan province, China. Around 3,500 villagers now live in the houses © Reuters

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Author

Kishore Mahbubani is the Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore, and a Member of the Global Agenda Council on China

Author

Kishore Mahbubani is the Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore, and a Member of the Global Agenda Council on China

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In China alone, more than 600 million people have been rescued from absolute poverty

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In China alone, more than 600 million people have been rescued from absolute poverty

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An Asian middle class that aspires to Western living standards could prove disastrous for the environment

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An Asian middle class that aspires to Western living standards could prove disastrous for the environment

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Japan’s energy efficiency is 10x better than China’s – there’s potential for more efficient resource use

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Japan’s energy efficiency is 10x better than China’s – there’s potential for more efficient resource use

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Asian societies succeed with reforms including market economics, mastery of science, tech and education

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Asian societies succeed with reforms including market economics, mastery of science, tech and education
The growth of Asia’s middle class is bringing a tremendous rise in living standards and a reduction of conflict in the region. But it also presents a challenge to the environment.

The reason these Asian societies are now succeeding in this way is because they have finally begun to understand, absorb and implement important reforms: free-market economics; mastery of science and technology; a culture of pragmatism; meritocracy; a culture of peace; the rule 
of law; and, of course, education. 

All across Asia we are seeing a tremendous rise in living standards, with poverty disappearing everywhere you look. In China, for example, since initiating market reforms, more than 600 million people have been rescued from absolute poverty. We’ll see a far greater improvement in living standards within the region than we have seen in centuries. And, through all this, there 
will be many benefits. 

From the survey

“The inexorable growth of the middle classes in Asia will put enormous stress on global resources.”

 One key positive outcome of these changes, for example, is the reduction of conflict within the region. Asia has yet to achieve the Western European gold standard of there being zero prospect of war between neighbouring states, but, because of the expansion of the middle class – a population that traditionally reduces the prospect of war – that’s something I think we are moving towards. 

It’s not all good news, though. The biggest challenge we face is what this all means for the environment; if Asia’s expanding middle class citizens all aspire to Western living standards through the Western model, the strain placed on our global environment could prove disastrous. Electric power consumption in the US was a staggering 13,395kWh per capita in 2010, but by contrast, in China and India it was just 2,944kWh and 626kWh per capita respectively. That means China and India currently each have three times the population of the US but a fraction of the per capita electricity consumption. Clearly, we cannot stop the explosion of the Asian middle class, so the hope has to be that these societies will be more responsible in their impact on the environment. 

Asian leaders recognise they have to do something in this arena. But in terms of solutions it’s also important for the developed countries to lead by example. This is a big challenge for long-term policy thinkers – if you want the likes of China to emerge as a responsible stakeholder and one that pays attention to the global environment, you have to show the way through deeds, not words.

Asian societies are succeeding because they have begun to implement important reforms including free-market economics, mastery of science and technology and education.

One way the Asian middle class could contribute to this dynamic is through the incredible amount of brainpower it will add to the realm of science and technology. Japan’s level of energy efficiency is 10 times better than China’s. So if lessons can be learned by China and the growing middle class there can contribute to areas such as the study of green tech, it may be possible to create greater economic growth while reducing resource use.

And so my advice is simple. The global trend of an expanding middle class, especially in Asia, is one to be embraced. People across the continent can see their lives improving by the decade and these Asian societies are experiencing a level of peace and prosperity that they haven’t enjoyed for centuries. If challenges like the environmental question can be tackled, there’s no reason why that shouldn’t continue for years to come.

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