‘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 do you agree with this statement? (40 marks)
‘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 do you agree with this statement? (40 marks)
The Asian Tigers, consisting of Hong Kong, South Korea, Singapore and Taiwan, were the second group of countries to develop after World War II, with the first being Japan. The Asian Tigers were able to develop due to a combination of comparative advantages, including partially existing developed levels of infrastructure, good geographical locations with open access to the sea allowing easy exportation, cheap labour and strong government support.
The Asian Tigers were most noted for their rise to power in the 1960-1980s, and were able to develop their country at rates unseen anywhere else in the world at that time. They experienced these decades of supercharged growth mainly from large amounts of exports to developed countries and high levels of internal competition. This gave the countries a vast trade surplus, allowing them to re-invest the money in areas such as infrastructure, creating a positive multiplier effect. At the peak of this development in Taiwan, 1/6 of all people in work had set up, and were currently running, their own business.
While the Asian tigers still command significant power in the global economy (all are within the top 40 largest economies), many people would argue that the BRICS (Brazil, Russia, India, China and South Africa) are now the main focus of development and the potential superpowers of the future global economy, with all of these economies being within the top 25 largest economies. While all of them have the potential to be global economic superpowers, with some arguing that China with is current rates of 7% growth and a budget surplus of 10% already is, people must remember that these economies are still developing, and, on their own, cannot be the focus of the global economy alone. The developed economies are driving the development of the BRICS
The Asian Tigers, consisting of Hong Kong, South Korea, Singapore and Taiwan, were the second group of countries to develop after World War II, with the first being Japan. The Asian Tigers were able to develop due to a combination of comparative advantages, including partially existing developed levels of infrastructure, good geographical locations with open access to the sea allowing easy exportation, cheap labour and strong government support.
The Asian Tigers were most noted for their rise to power in the 1960-1980s, and were able to develop their country at rates unseen anywhere else in the world at that time. They experienced these decades of supercharged growth mainly from large amounts of exports to developed countries and high levels of internal competition. This gave the countries a vast trade surplus, allowing them to re-invest the money in areas such as infrastructure, creating a positive multiplier effect. At the peak of this development in Taiwan, 1/6 of all people in work had set up, and were currently running, their own business.
While the Asian tigers still command significant power in the global economy (all are within the top 40 largest economies), many people would argue that the BRICS (Brazil, Russia, India, China and South Africa) are now the main focus of development and the potential superpowers of the future global economy, with all of these economies being within the top 25 largest economies. While all of them have the potential to be global economic superpowers, with some arguing that China with is current rates of 7% growth and a budget surplus of 10% already is, people must remember that these economies are still developing, and, on their own, cannot be the focus of the global economy alone. The developed economies are driving the development of the BRICS