...Since the end of the second world war, many East Asian economies have seen a “miraculous” growth. And with so many other nations still in poverty, economists and leaders are turning their eyes towards the “East Asian tigers” to see if they can replicate their results. When looking at the facts it is obvious that the the circumstances facing the East Asian nations were quite different than the ones that nations face today. But outside of these differences a loose model of the East Asian miracle can be utilized in Third World nations today and, considering the high success rate of so many of the East Asian economies, would most likely see positive results. The secret to success of East Asian economies is the hand that the government has had in industrial affairs. Starting in the 1950s nations like china began taking steps towards centralized government through reform. One example of this would be the Chinese land reform of the 50s under the new Mao Zedong's communist regime (Blecher, 2010:p.27). This land reform took away the oligarchic control of the landlords, changing the feudalistic policy of landlordism over to a more capitalistic form of socialism in which the government has the control. This is clearly a very vital part of the industrialization process as many nations that have failed with the agrarian reform continue to find themselves struggling to get out of poverty. A modern example of this would be Brazil, where the rural landlords have stalled any sort of reform that...
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...‘The global economy has moved on from the Asian Tigers; the present and the future of the global economy now lie elsewhere’. To what extent to you agree with this statement. (40 marks) The global economy is the economy of the world, considered as the international exchange of goods and services expressed in monetary units. The Asian Tigers, (Hong Kong, Singapore, Taiwan and South Korea) were economically developing states during the 1960’s and 1970’s, and are a rare example of third-world-rapid-development - development that nobody could have predicted 50 years ago! However, does this mean that the global economy still relies on them in the same way? And can there be a practical application for these states in contemporary development, whilst the 20th century threat of emerging markets and financial crisis looms near? The Asian Tigers were highly considered the first wave of Newly Industrialised Countries (NIC’s), and experienced enormous growth in the 1960’s and 1970’s. They had many appealing factors that found favour with the larger Transnational Corporations (TNC’s) and as a result of which they became the bulk of the workforce for many foreign companies, such as Nike. Above all, their currencies were cheap, and therefore they easily attracted investment from foreign countries that could make more profit. And they were seen as less of a competition in relation to the newly industrialised areas, such as China, which were still using higher wages and therefore a more expensive...
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...E C O N O M I C I S S U E S 1 Growth in East Asia What We Can and What We Cannot Infer Michael Sarel I N T E R N A T I O N A L M O N E T A R Y F U N D E C O N O M I C I S S U E S 1 Growth in East Asia What We Can and What We Cannot Infer Michael Sarel I N T E R N AT I O N A L M O N E TA RY F U N D WASHINGTON, D.C. ©1996 International Monetary Fund ISBN: 1-55775-607-4 Published September 1996 Reprinted November 1996 To order IMF publications, please contact: International Monetary Fund, Publication Services 700 19th Street, N.W., Washington, D.C. 20431, U.S.A. Tel.: (202) 623-7430 Telefax: (202) 623-7201 Internet: publications@imf.org Preface The Economic Issues series was inaugurated in September 1996. Its aim is to make accessible to a broad readership of nonspecialists some of the economic research being produced in the International Monetary Fund on topical issues. The raw material of the series is drawn mainly from IMF Working Papers, technical papers produced by Fund staff members and visiting scholars, as well as from policy-related research papers. This material is refined for the general readership by editing and partial redrafting. The following paper draws on material originally contained in IMF Working Paper 95/98, “Growth in East Asia: What We Can and What We Cannot Infer From It,” by Michael Sarel, an Economist in the Fund’s Southeast Asia and Pacific Department. It has been prepared by David D. Driscoll of...
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...income as a nation. A ‘TNC’ is a company that operates in at least two countries. They often have management headquarters in their home country and operate in host countries alongside; examples would include GlaxoSmithKline, BP, Wal-Mart and Coca-Cola. NICs are having a prominent impact on sculpting the global economy. They are characterised by the fact that they are gaining an increasing share of the world manufacturing output, a significant growth in their manufactured export production and a significant annual growth in their manufacturing sector. The first generation of NICs were, given their geographical location, known as the ‘Asian Tigers’ – Hong Kong, Taiwan, South Korea and Singapore. The impact of NICs is global; the 21st century is arguably an era of global economic independence. The growth model of the Asian Tigers has been criticised. They have not followed the typical model of import substitution with an aim of becoming self-sufficient, instead they have...
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...growth over the last 40 years because they often have very low labour costs, attracting TNC’s and encouraging foreign direct investment. TNC’s get enticed by low labour costs, large English-speaking workforce and reduced trade tariffs. NIC’s are characterised by the fact that they are gaining an increasing share of the world manufacturing sector. The first generation of NICs were known as the ‘Asian Tigers’ – Hong Kong, Taiwan, South Korea and Singapore. They attracted many TNCs because of low cost of land, cheap labour, reduced trade tariffs, and expanding domestic markets (increasing demand). The Tigers achieved massive economic growth with Hong Kong's GNI per capita grew from $1800 in 1973 to $32,950 in 2008. However, the growth model of the Asian Tigers can be criticised. They have not followed the typical model of import substitution with an aim of becoming self-sufficient, instead they have focused on exports, arguably preying on the on the healthy economic state of MEDC’s. But this activity isn’t sustainable within the global economy, from the 1960s to the 1980s the Tigers pursed this method of development, but by the 1990s their economies had expanded too fast and prices of property, stocks and shares had become overvalued and they saw mass inflation, harming their global reputation. Also their environmental degradation was huge, air pollution and deforestation have largely increased, meaning we cannot globally move forward with trying to implicate pollution laws if...
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...The Myth of Asia’s Miracle Paul Krugman Foreign Affairs; Nov/Dec 1994; Vol.73, Iss. 6; pg. 62, 17 pgs The Myth of Asia’s Miracle Paul Krugman A CAUTIONARY FABLE Once upon a time, Western opinion leaders found themselves both impressed and frightened by the extraordinary growth rates achieved by a set of Eastern economies. Although those economies were still substantially poorer and smaller than those of the West, the speed with which they had transformed themselves from peasant societies into industrial powerhouses, their continuing ability to achieve growth rates several times higher than the advanced nations, and their increasing ability to challenge or even surpass American and European technology in certain areas seemed to call into question the dominance not only of Western power but of Western ideology. The leaders of those nations did not share our faith in free markets or unlimited civil liberties. They asserted with increasing self-confidence that their system was superior: societies that accepted strong, even authoritarian governments and were willing to limit individual liberties in the interest of the common good, take charge of their economies, and sacrifice short-run consumer interests for the sake of long-run growth would eventually outperform the increasingly chaotic societies of the West. And a growing minority of Western intellectuals agreed. The gap between Western and Eastern economic performance eventually became a political issue. The Democrats recaptured...
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...Economies of Scale 2 2.1.2 Thickness of Markets 2 2.2 Production Fragmentation 3 2.2.1 Factor-cost and technology advantage 4 2.2.2 Low International Trade Cost 4 3.0 Using two case studies of firms headquartered in two different countries, show how the growth of trade and investment links among several Asian economies is related to the strategic production and location decisions of firms and how firms took into consideration the main factors affecting such decision. 6 3.1 First Case Study of Firm; Toyota Motor Corporation Headquartered in Japan 6 3.2 Second Case Study of Firm; Apple Inc Headquartered in U.S. 7 3.3 Comparisons between Toyota Motor Corporation and Apple Inc. 7 3.4 Factors Toyota and Apple took such strategic production and location decisions 8 4.0 Conclusion and Recommendation 9 5.0 References 10 1.0 Introduction East Asian region has been seen as the world’s fastest growth centre for decades with the emerging of East Asian Tigers- Hong Kong, Singapore, South Korea and Taiwan- shows that the world’s economic centre of gravity is gradually shifting East (Ando & Kimura, 2005). The World Bank (1993) listed this as “East Asian Miracle”. With more and more acceptance of globalization and trade liberalization in East Asia had formed international production network (IPN) – the cross-borders trades of parts and components to other countries or regions before the assembly of final product is completed (Saslavsky & Shepherd, 2012) – that...
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...RETHINKING THE EAST ASIAN MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors RETHINKING THE EAST ASIA MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors A copublication of the World Bank and Oxford University Press i Oxford University Press Oxford • New York • Athens • Auckland • Bangkok • Bogotá • Buenos Aires • Calcutta • Cape Town • Chennai • Dar es Salaam • Delhi • Florence • Hong Kong • Istanbul • Karachi • Kuala Lumpur • Madrid • Melbourne • Mexico City • Mumbai • Nairobi • Paris • São Paulo • Singapore • Taipei • Tokyo • Toronto • Warsaw and associated companies in Berlin • Ibadan © 2001 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, N.W., Washington, D.C. 20433, USA Published by Oxford University Press, Inc. 198 Madison Avenue, New York, N.Y. 10016 Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Cover design and interior design by Naylor Design, Washington, D.C. Manufactured in the United States of America First printing June 2001 1 2 3 4 04 03 02 01 The findings, interpretations, and conclusions expressed in this study are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations...
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...International Political Science 8 October, 2013 World Bank: The East Asian Miracle The East Asian Miracle is described as a historic series of events and policies that led to the economic growth of twenty-three East-Asian economies from the 1960s to the 1990s. Each economy was impacted differently thus the most important due to the degree of change would be: Japan, Hong Kong, Taiwan, Korea, Singapore, Indonesia, China, Malaysia and Thailand. A combination of many policies and government turned these developing nations into industrial leaders of the world. These changes didn’t occur without government stimulation and policy changes, some of which were directed towards market and some towards state. Each policy had to be tailored to a country’s specific dilemma, many of these countries suffered from different problems and had to be addressed as such. Eventually, each of these led to many outcomes which together became the rapid growth of the Eastern Asian economies such as: increase of real income per capita, balancing the margin between income inequalities, human welfare, and more. Government intervention and actions are usually a good thing depending on what the desired outcome is, but too much of it can be detrimental to the welfare of the economy. A balanced amount of stimulation was needed in order to get the economy going, such as limited government spending to limit deficits. A statement from the book that directly relates to the focus of these reforms is “The eight...
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...In order to trace the events that led to the eventual collapse of the Asian economies, one must venture across the ocean to the United States. The issue of liberalisation first gained attention in the US during the Regan Administration. However, it was during the Clinton era that liberalization became a top priority. Whereas previous governments had pushed for the liberalisation of Japan, one of Clintons main foreign policy objectives was the liberalisation of the Asian economies. This process was pushed forth in Asia with such vehemence because the region held a lot of investment opportunities for American Banks, Brokerages, and other financial sector businesses. Unfortunately, Asia�s economies were not structurally ready to deal with the influx of capital that was headed their way. They had weak banking and legal systems that were unable, or unwilling, to regulate the flow of foreign capital in the country. The Americans eventually persuaded Koreato relax its capital flow regulations by giving it the option of joining the Organisation for Economic Co-operation and Development. Even then, Korea was concerned that its financial institutions may not be able to deal with an influx of foreign capital. One fatal mistake that Korea, as well as other Southeast Asian countries made, was that they opened their capital markets in the wrong way. They did not allow long term investments in Korean companies, but rather, only short-term investments that could be removed easily. One example...
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...Project - Tigers Alive! WWF-Malaysia’s Tigers Alive! project was initiated following the completion of WWF-Malaysia’s human-tiger conflict work in FELDA Jerangau Barat, Terengganu in 2003. This project subsequently kicked off in Jeli, Kelantan, where human-tiger conflict was a major issue at that time. Since then, the project has expanded to the greater Belum-Temengor Forest Complex, a priority area for tigers as identified under the National Tiger Action Plan. With support from partners and stakeholders, this project aims to develop long-term measures to improve the protection and management of key tiger populations and their habitats. This project will contribute towards the National Tiger Action Plan, a government strategy outlining the steps to be taken to ensure the long-term survival of tigers in the wild. The Tigers Alive! project employs a holistic approach for tiger conservation, and is currently focusing on the Belum-Temengor Forest Complex as well as the larger Banjaran Titiwangsa (Main Range) landscape. The modules of this project include reducing poaching activities, conducting scientific monitoring on the population dynamics of tigers and their prey, raising awareness and reducing human-tiger conflicts through community engagement and educational programmes, ensuring forest connectivity, as well as monitoring land-use changes in tiger landscapes and communicating the cause and effects of human activities on nature to everyone. Each module forms an important...
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...have taken in polar bears rescued from a traveling circus, and the Bronx Zoo took in an orphaned snow leopard from Pakistan in 2007. The cub, Leo, now spends his time frolicking and chasing small animals that wander into his enclosure” (Nancie Majkowski, ver. 2). On the rebuttal side, zoos are believed to be inhumane camps merely for the enjoyment of spectators and for cities to make a buck. There are several organizations that demand the release of these animals and to keep zoos and facilities such as this closed down permanently. Organizations such as PETA, ASPCA, and American Humane Society are just a few. The actions of the more ferocious animals like the tigers and lions are merely acts of self-defense. “African elephants in the wild live more than three times as long as those kept in zoos. Even Asian elephants working in...
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...African lions live in sub-Saharan Africa also known as the Sahara. Asiatic lions also live in a sub-Saharan habitat as well, in Asia though. Then there is the Indian lion, which is near extinction, it lives in India's Gir Forest. Then finally, there is a rare cross-breed of a lion and a tiger called a liger. Ligers are a male lion to a tigress, and a tigon is a male tiger to a lioness. There are very few ligers and...
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...100,000 tigers roaming the forests, swamps, and tundra of Asia. TODAY, there are as few as 3,200 left in the wild. Only 7% of historic tiger habitat still contains tigers. At this rate, wild tigers will be extinct in just a few decades. Illegal Trade Consumer demand for tiger parts poses the largest threat to tiger survival. Tigers are being hunted to extinction by poachers for their skins, bones, teeth and claws, which are highly valued for their use in traditional Asian medicine (TAM), various folk remedies and various products. The wildlife trade network, TRAFFIC, found that for the past two years, the smuggled parts from at least 200 tigers have been confiscated per year by law enforcement in Asia. In the past 10 years, over 1000 tigers have been killed to traffic their parts to meet consumer demand in Asia. Demand Tiger bones have been used in TAM for a wide variety of ailments for more than 1,000 years. In 1993 the Chinese government banned the trade and use of tiger parts, but cultural belief in the power of tiger parts remains. Parts from a single tiger can fetch as much as $50,000 on the black market, making the poaching of these magnificent creatures very alluring to criminal networks. Claws, teeth and whiskers are believed to provide good luck and protective powers. And tiger skins and tiger bone wine are valued as status symbols. Black Market Demand Uses of tiger body parts in various cultures that is driving the poaching of wild tigers. Tiger Farms ...
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...Endangered Tigers Today wild tigers exist in Eastern Russia, China, Vietnam, Cambodia, North Korea, Thailand, Malaysia, Indonesia, Bhutan, India and Nepal. In order to live in the wild, tigers need water to drink, animals to hunt, and vegetation in which to hide. As the mountains, jungles, forests, and long grasses that have long been home to tigers disappear, so too, do tigers. Agricultural expansion, timber cutting, new roads, human settlement, industrial expansion and hydroelectric dams push tigers into smaller and smaller areas of land. These small areas of forests are surrounded by rapidly growing and relatively poor human populations, including increasing numbers of illegal hunters. Tigers compete with an expanding human population and industry for land and food, many tigers are killed by poachers who sell the tiger’s body parts as ingredients for traditional Chinese medicines. If these trends continue, the wild tiger may evolve from being an endangered species and off the endangered species list to become an extinct species. Without wilderness, the wild tiger will not survive. If the world is not careful, one of the beautiful creatures on the planet will become extinct. Everyday more and more tigers are being slaughtered for their skin, bones, meat, and other organs to produce clothes, home décor, medicine, food and even alcohol. For example bones are soaked in alcohol to make wine, and ground up bone mixed with herbs is believed to relieve pain such as arthritis...
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