Eastern Europe's strategic pivot: Embracing ASEAN, Gulf economies for growth

The Emerging Europe platform carries the article which explores the economic path of Eastern Europe and suggests a strategic pivot towards a fresh economic strategy called the "diagonal," connecting ASEAN and the Gulf states with Eastern Europe.

Traditionally, the region has focused on integrating into the European Union (EU), leading to significant economic growth, foreign investment, and cultural advancements over the last thirty years.

Initially, this integration mirrored the American Dream, fueling aspirations and economic advancements. Countries like Romania and Poland saw significant economic growth, with GDP per capita increasing several-fold since 1990. However, the article points out that while this growth has been positive, it hasn't kept pace with global trends, particularly compared to the rapid expansion of economies like China's.

The traditional focus on consumer economies and integration into Western supply chains may no longer suffice as primary drivers of growth for Eastern Europe. This realization prompts a strategic reassessment, with the article advocating for embracing new economic dynamics emerging in regions like ASEAN and the Gulf.

ASEAN countries are noted for their robust economic growth, demographic advantages, and increasing urbanization and industrialization rates. Meanwhile, the Gulf states are positioning themselves as pivotal hubs for trade and finance, particularly for the Global South. These regions offer opportunities for Eastern Europe to tap into diverse economic activities, from logistics and foreign direct investment to technology transfer and financial services.

The article argues that Eastern Europe should pivot towards becoming a logistical and investment hub connecting ASEAN and the Gulf with the EU. This shift would involve enhancing infrastructure, fostering technological advancements, and developing financial markets to attract and facilitate investment flows from these rapidly growing regions.

Moreover, the article underscores the strategic importance of diplomatic and economic engagement with key hubs such as Dubai, Doha, and Singapore. This proactive approach is seen as essential for Eastern Europe to diversify its economic partnerships and bolster its role as a gateway to the EU.

In conclusion, while maintaining strong ties with the West remains crucial, the article advocates for Eastern Europe to expand its economic horizons by embracing opportunities in ASEAN and the Gulf. This strategic reorientation is framed as essential for sustaining growth and competitiveness amidst evolving global economic dynamics.