Sustainable Development Trajectory of Southeast Asia Emerging Economy Countries

Abstract

Indonesia, Malaysia, the Philippines, Thailand, and Vietnam are emerging economies in Southeast Asia (ESEA), as identified by the Emerging Market Index and the IMF. Currently, ESEA faces the challenge of continuously improving its economies, formulating strategies to mitigate and adapt to climate change, and fulfilling global commitments toward achieving the Sustainable Development Goals (SDGs). Using the Sustainability Window analysis, this study aims to examine the development trajectories of these countries to determine whether they are moving toward a sustainable direction or not. The Sustainability Window analysis accommodates various indicators within a single analytical framework, allowing for a comparative assessment of sustainability across countries. The findings reveal that, in general, economic growth in ESEA is accompanied by improvements in social welfare, but also by significant environmental degradation. This indicates that the region’s development is not environmentally sustainable. As a result, ESEA shows a low potential for achieving the SDGs and faces a high risk of adverse climate change impacts. Without sufficient efforts to steer economic growth in a more environmentally sustainable direction, climate change will likely undermine the region's social welfare and negate the development achievements made so far.