A new Asia has emerged in the last quarter century.
This is in stark contrast to 1970's: a communist China under iron curtain, Isolated India practicing autarchy with Totalitarian rule in Vietnam, Myanmar, Laos and wars in Korean Peninsula,Indochina and Indian sub Continent. Political disputes over borders on, Line of Control, 38th parallel, Durand Line, Kurile islands, were the only news from Asia then.
Asia now, in the 21st century ,has lowered the barriers for goods and international capital flows, has established property rights,with 100% ownership and repatriation of profits for foreigners allowed in many countries and has put in place a legal and commercial infrastructure for capitalism to flourish, and a low tax rate to attract Capital and Investment.
Asia’s 4 billion strong population is likely to have as profound an impact on the world as was the Portuguese discovery of an all sea trade route to India in last quarter of 15th century or the rise of America in the last quarter of 19th century.
The continent of Africa is the richest in natural resources. 56 countries straddling the continent with borderlines dating back to European Colonial era of 19th century. 42% of a billion people are under 14 years of age and median age is 19 years.
It is truly the last frontier on earth with 80% of the Continent in the same pristine state, as first explored by Sir. David Livingston in 19th century. Thousand of miles of Mediterranean coastline untouched by any development so far.
There is a massive demand for almost everything, the modern industrial enterprise can produce and a perfect place to practice Say’s Law of Economics.
Fewer than one fifth of the road network is paved, two third population is still rural, one half of population is still off grid a quarter of billion middle class with as strong a purchasing power as is in the Western Europe.
GDP growth rate of Africa has been 5% and above for all years in 21st century ,except 2009. Population growth rate is 2%, clearly indicating that Consumption is about to explode in a big way and standard of living is on the rise.
This frontier is almost entirely decoupled from the rest of the world. The twenty first century first Financial crisis (2007-14) least impacted it, and consumer is entirely unleveraged here.
Alternative Investments & Outperforming Asset Class of Twenty First Century