New challenges for Asia’s Government

I was reading one article from Mckinsey and I want to share the same with you all. The economic crisis has created a number of problems worldwide in nearly every sphere of Human way of living. Public sector and Private sectors both are affected in every continent. At some places the effect is high and while other potential economies have got a very little touch of that. Nevertheless no one is at the ideal or previous state. This article focuses on the Asian countries Government’s role in the turmoil to run the economy. I have taken all the points mentioned in the article. So have a look and try to analyze whether your government is doing the same or not.
Role of the Govt is expanding because of the following reasons-
· Implosion of Credit Markets.
· Subsequent sharp decline in economic activities.
· Concern about social and political activity.
In the West the Role of the Govt is changing which has risen two points-
· Due to the reason of great economic and financial turbulence.
· Representation of discontinuity which redefines Govt Role.
Asian economies; before the economic crisis the routine economic role of Govt was-
· To develop and implement industrial Policy
· Managing exchange Rates
· Deploying Reserves
· Using State-Owned Assets
Asia is less exposed to the turmoil than West because-
· Their respond to the previous decade regional crisis
· Improved Current- Account Positions
· Accumulating reserves
· Being ensured that their Banking systems operated prudently
Effects of Economic crisis on Asia
· Shrink of the economic growth of the region to a limit
· Decreased in the demand from the western markets
· Effective 30 years old Export-led Model is distorted
How to come out, Asia
· Need to find alternative sources of growth to compensate the rapid fall of demand in western Market
· Adapt from Export-led model to some other global economic context
Challenges for the Asian Govt, due to crisis
· The way they operate
· Require adjustment in their roles
Asian Govt will likely be more prominent in the following areas
· Government as Principal Investor
· Government as Alliance builder
· Government as Economic strategist