In Part 1, we mentioned that the pan-Asian market (including India and the Middle East) as a whole is set to double its share of worldwide GDP in the relatively near term. Keynote speakers at ProcureCon Asia claimed that Asia will go from 1/3 in 1997 to 2/3 in 2027. You can find some related stories here and here.
With the anemic growth rates and somewhat stifling business climate in the West these days ironically contrasted with lower tax rates and more favorable investment and business cultures in the East (where most countries are far from democratic in any sense of the word), it isn’t difficult to believe these projections. Compound growth is not to trifle with – even when the starting base is small. Recall the chess game creator and his seemingly innocent request for grains of rice, doubling in count with each square on the board. This is a suitable metaphor for growth in Asia – alas, even if there are few kings to bankrupt.
As the tipping point where intra-Asian trade starts to dominate trade activities in the region is rapidly approaching, it will be interesting to see how procurement standards and approaches will evolve to suit this region’s needs. We might even see pushback on some of the more well-intended Western regulations that make less sense in Asia, even if they are near and dear to the hearts of some in the West.
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