| Co-operation with the Dynamic Asian Economics One of the main strengths of the OECD is its capacity to adapt its activities to new developments in the world economy. In January 1989 the OECD broke new ground by embarking on an informal dialogue with the East and South-East Asian economies which have exhibited considerable dynamism in their market-oriented development: the Dynamic Asian Economies. What economic circumstances underlie the mutual interests that are the basis for this dialogue, and how has it progressed? André Barsony Over the three decades of the OECD's existence, the gross domestic product of the OECD area, measured in real terms, has risen at a rate of approximately 3.9% per annum. While it is difficult to identify the relative importance of various factors which contributed to this impressive performance, two appear to have been critical. 1 One has been rapid technological change, especially in communication and transportation. The second is the liberalisation of international movements of goods, services and capital. Time is a great leveller. The remarkable performance of OECD growth in the last few decades has led to the convergence of productivity and per capita income levels among OECD countries. 2 During the period of economic integration that covered the life of the the OECD's predecessor, the Organisation of European Economic Co-operation: (OEEC) and the early years of the OECD itself (1950-65), this convergence stemmed mainly from Europe's recovery from the Second World War. In the years that followed, shifts in economic weight inside the OECD area reflected mainly the 'catching up' of the technological and economic management capabilities of Japan with those of the most advanced industrial countries (Table 1). A striking development is that the convergence process has begun to encompass a number of economies from outside the OECD area. The emergence of the Dynamic Asian Economies (Hong Kong, Malaysia, Singapore, South Korea, Taiwan and Thailand) as major economic partners, notably as importers of merchandise and exporters of manufactured goods (Table 1), has significantly expanded the foundations and improved the prospects for growth through economic integration. The Dynamic Asian Economies (DAEs) showed strong economic performance in the 1980s (Table 2). On average, they outperformed OECD countries by a healthy margin, growing at considerably higher rates. Indeed, productivity and per capita income in several DAEs are close to average OECD figures. During the latest upswing in world economic activity (1983-89), André Barsony is Deputy Head of the Liaison and Coordination Unit of the OECD's General Secretariat.
____________________ | 1 | See Raymond Vernon, "Global Interdependence in a Historical Perspective", in Interdependence and Co-operation in Tomorrow's World, OECD Publications, Paris, 1987. | | 2 | See OECD Economic Outlook, No. 42, OECD Publications, Paris, 1987, and John Helliwell, "Globalisation and the National Economy", in Perspective 2000, Economic Council of Canada, Ottawa, 1988. | -14- | 
