LESSONS FROM THE ASIAN TIGERS

 ASIAN TIGERS

The Asian Tigers are made up of four countries in East Asia e.g South Korea, Taiwan, Singapore and Hong Kong.They all went through rapid growth by going through industrialisation since the year 1960s. They were also referred to as third world countries.

The major reason behind their growth is that they found their comparative advantage EG Singapore and Hong Kong is considered as intern kmational finance centre why Taiwan and South Korea are majorly manufacturer of information technology equipment.

LESSONS FROM THE ASIAN TIGERS

Creation of stable macroeconomics environment they were able to create an environment which is conducive to business E.G they were able to achieve success in the area of budget deficit and external debt..

Government investment in education through universal primary education literacy level reduces and increase on cognitive skill.

Introduction of export-oriented policy they introduce various policies on health support free trade was also introduced for is the exchange of goods and services.

  1. Promotion of specific export industry that is export push strategy.
  2. Establishment of banking system which favour their own nature.
  3. Setting up of individual estate and social amenities were provided in the nooks and crannies of the countries.
  4. Attracting foreign industries many policies were introduced to attract foreign industry E.G tax incentives. 
ASIAN TIGERS STRATEGIES
  1. Creation of stable macroeconomic environment: This was the foundation of the Asian miracle. They were able to create a stable microeconomic environment which is conducive to business. For example, they were able to achieve success in the area of budget deficit and external debts.
  2. Introduction of export oriented polices: They introduced various policies on export. For example, Hong Kong and Singapore introduced trade regime that were neoliberal in nature and encouraged free trade. On the other hand, South Korea and Taiwan adopted mixed regime.
  3. Promotion of specific exporting industries: The tigers also worked towards promoting specific exporting industries. This is referred to as export push strategy.
  4. Establishment of banking system which favour their own nature.
  5.  Government investment in education: The level of education enrolment was higher than predicted given their level of income. By the year 1965 some of these countries have achieved universal primary education. There was decrease in gap between male and female enrolments which has led to high level of literacy increase in cognitive skills.
  6. Setting up of industrial estates: Industrial estates were set up and social amenities were provided in the nooks and crannies of the countries.
  7. Attracting foreign industries: Many policies were introduced to attract foreign industries e.g. tax incentives.
CHARACTERISTICS OF ASIAN TIGERS
  1.  All grew economically at a very short period of time and started with little to no natural resources.
  2. All are export-orientated economies but with different emphasis (Hong Kong and Singapore focused on international trade, finance and entrepreneurship, while South Korea and Taiwan focused on mass manufacturing, electronics and information technology.
  3. Each place are highly prosperous, features high quality infrastructure and where everything works.
  4. Their governments are designed in a way to accommodate their economic models (i.e. Singapore having a business-orientated government, South Korea has an manufacturing focused government etc.)
  5. All are known to have equal relations with both the United States and China (which is unusual for most developed countries.)
  6. They all have invested into cultural exporting one way or another.
  7. Their political and even cultural frameworks emulates those of other countries. British influence in Hong Kong and Singapore, American in South Korea, and Japanese influence in Taiwan (though it can be argued that Taiwan went through some sort of “Americanization” phase at one point.)
  8. All are well-known for their unique food cultures.
  9. They all experienced great support from the United States during the Cold War period, party due to assurance that they won’t be influenced by communism.
  10. All had quite authoritarian governments. They weren’t really democratic nor were they that free during the beginning years of development. Though over time, they all did become freer and can be considered democratic.
  11. Japan invested into them heavily during the 1980’s, with significant transfers in technology and funds.
  12. Because their domestic markets are small, they had globally orientated economics and, for Hong Kong and Singapore, have domestic prices linked to international prices.
  13. They are reliant on American bondings.
  14. They all experience high GDP per capita and HDI.
  15. They emphasize on their skilled and motivated workforce for their economic development.
  16. Their economics are highly competitive.
  17. Have social institutions that encourage innovation, business creation and growth.
  18. Provide consistent monetary policy.
  19. Removal of comstiants.
  20. Provide a common stock of education, social services and infrastructure.
  21. Tax incentives for home ownership.
  22. A government programme to help business and service promotion.
  23. Import substitution industrialization.
  24. Development ofheavy industry.
  25. Development of the high tech industry.
  26. Aggressive reinvestment in infrastructure. 
  27. Providing subsidies to medical services.
  28. Regulating public transport and utility industries.
  29. Tightening banking supervision.
  30. Building a vibrant and diverse corporate system.

RELATEDECONOMIC LESSONS FROM ASIAN TIGERS

The name Asian tigers are used for the economies of Taiwan, south Korea, Singapore and Hong Kong. The major reason behind the growth of this countries is that they found their comparative advantages. The following are the features of the Asian Tigers:

1. Government investment in education to increase the cognitive skills among them.

2. Creation of stable macroeconomic environment through budget deficit and external debts settlement. 

3. Introduction of export oriented policies i.e. they introduce various policies on export.

4. Promotion of specific exporting industries; which is referred to as export push strategies.

5. Establishment of banking system which favour their own nature.

6. Setting up of industrial estate and social amenities where provided throughout the countries. 

7. Attractive foreign industries through introduction of foreign policies that would encourage those foreign industries. 

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