It will become increasingly diversified among emerging economies, in particular within Asia. Similarly, to ensure sustainability of economic growth, it requires consideration of inclusion. 8  BIS Review 130/2009  Three key strategies for Asia Going forward, three areas are critical for Asia. The current crisis demonstrated the effects of Asia's reliance on trade and final demand from the advanced economies. While domestic demand and intra-regional trade has started to increased, it still shows the region's continued close trade connections with the global community. Exports performance in the Asian economies was dramatically adversely affected, causing the more open economies in the region to slip into recession, while other Asian economies experienced slowing economic growth. The decline in world trade followed the reduced final demand from the advanced economies. The outward-oriented policy across Asia and the internationalisation and vertical integration of manufacturing supply chains amplified the magnitude and speed of trade contraction in the Asian economies. An important strategy for Asia going forward is,  BIS Review 130/2009  9  therefore, to intensify the balance of the outward-oriented development strategy with efforts to promote the greater role of domestic demand. This economic diversification will provide increased resilience in the face of external shocks and will enhance the overall growth prospects for Asia. Several preconditions are already in place to support domestic demand in Asia going forward. The first is the favourable demographic structures, fast-rising income levels, broadening affluence and the growing middle income class across most of the Asian economies.
Conclusion In a short span of just fifty years, Asia, with its vast diversity in population, ethnicity, social structure and political regime, has made remarkable progress throughout the region. Despite broad and different challenges from urbanisation and rising income inequality to economic crises and social instabilities, Asia has time and time again risen to the occasion and resumed the economic progress. The “Asian miracle” was achieved not by chance, but by pragmatic policies, ensuring sound economic fundamentals and strong institutions. Today, a global shift, triggered by a severe global economic and financial crisis is resulting in an increasingly multi-polar world. In this new phase of globalisation, the concentration of economic power in the global economy will become more dispersed. Asia will very much be a part of this new emerging future. With growth in the advanced economies expected to remain slow and with the emerging economies increasingly becoming the growth centres in the global economy, Asia must review and accordingly change its existing development in this new environment. Of significance, strengthening of the domestic Asian economies supported by the necessary institutions, the further development of the financial markets, and greater regional financial integration that is reinforced with overall regional cooperation. As these trends become more pronounced, it will not only contribute towards unlocking Asia's full potential, but it will also contribute towards a more balanced growth in the global economy. References Asian Development Bank (ADB), 2008, "Emerging Asian Regionalism: A Partnership for Shared Prosperity".