Asian tigers
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Transcript of Asian tigers
Also known as Asian Dragons
Which referred to the highly free and developed economies of Hong Kong, Singapore South Korea and Taiwan.
All were developed and high-income economies
A focus on exports, an educated population and high savings rates. The economies of the four tigers have proved to be
resilient enough to withstand local crises, such as the Asian financial crisis of 1997, as well as global shocks like the
credit crunch of 2008. The IMF includes the four Asian tigers in its category of 35 advanced economies.
Nowadays, IMF includes 4 Asian tigers in its category of 35 advanced economies.
All four territories had a strong degree of Chinese influence, with most having a large ethnic Chinese community (except South Korea; cultural influence), Singapore had a population that included 75% ethnic Chinese, Hong Kong had 95% and Taiwan had 98%.
During the 1960's they had an abundance of cheap labour
They had non-democratic and relatively authoritarian political systems during the early years, so the governments could easily drive through their plans for economic development.
They focused their development drive on exports to richer industrialized nations rather than focusing on import substitution, which meant that they built up trade surpluses with the industrialized countries.
Hong Kong and Singapore have become world-
leading international financial centres, whereas
South Korea and Taiwan are world leaders in
manufacturing information technology
Their economic success stories have served as
role models for many developing countries,
especially the Tiger Cub Economies i.e.
Indonesia, Malaysia, Thailand and the
Philippines
Focus on increasing exports
High growth rates (excess 7 percent per year)
Rapid industrialization
Education of population
High saving rates
Small sized with small population
Little or no natural resources
Same Culture background (Confucianism)
Affected by Western countries
Specialization in areas
Skilled and cheap workforce
Stable political environment
Market economies / trade gateways
Coastal / Maritime access
Rapid industrialization driven by exports
Low taxation and free trade
Service-based economy in the 1980s
GDP grew 180 times (1961~1997)
largest re-export center
Foreign direct investment and a state-led drive
One of the least corrupt countries
Skilled workforce
Depends heavily on exports and refining imported goods
Tourism (medical tourism)
Heavily dependent on international trade
Outward-looking strategy in early 1960s
Government initiatives
Huge national conglomerates
Country or
territory
GDP
nominal
millions of
USD (2011)
GDP PPP
millions of
USD (2011)
GDP
nominal per
capita
USD (2011)
GDP PPP
per capita
USD (2011)
Trade
millions of
USD (2011)
Exports
millions of
USD (2011)
Imports
millions of
USD (2011)
Hong Kong 246,941 354,272 34,049 49,342 944,800 451,600 493,200
Singapore 266,498 314,963 49,270 59,936 818,800 432,100 386,700
South Korea 1,163,847 1,556,102 23,749 31,753 1,084,000 558,800 525,200
Taiwan 504,612 886,489 21,591 37,931 623,700 325,100 298,600
The export oriented economies of the four Asian tiger nations which benefited from American consumption
No small part to each country’s government fiscal stimulus measures
These fiscal packages accounted for more than 4% of each country's GDP in 2009
Another reason for the strong bounce back is the modest corporate and household debt in these four nations.
Attributed to export oriented policies and strong development policies
Sustained rapid growth and high levels of equal income distribution
A World Bank report suggests two development policies among
others as sources for the Asian miracle: factor accumulation and
macroeconomic management
High levels in physical and human capital amongst the four
countries, this subsequently led to a rapid growth in per capita income
levels
While high investments were essential to the economic growth of
these countries
Role of human capital was also important, Education in particular is
cited as playing a major role in the Asian miracle
Decrease in the gap between male and female enrolments
Impact on all of the four Asian tiger economies. South Korea was hit the hardest as its foreign debt burdens swelled resulting in its currency falling between 35-50%.
By the beginning of 1997, the stock market in Hong Kong, Singapore, and South Korea also saw losses of at least 60 % in dollar terms.
However, four Asian tiger nations recovered from the 1997 crisis faster than other countries due to various economic advantages including their high savings rate (except South Korea) and their openness to trade.
Were hit hard by the financial crisis of 2007-
2008, the GDP of all four nations fell by an
average annualized rate of around 15%.
Exports also fell by a 50% annualized rate, Weak
domestic demand also affected the recovery of
these economies.
In 2008, retail sales fell 3% in Hong Kong, 6% in
Singapore and 11% in Taiwan.