SS3 First Term Economics Lesson Note – Economic Lessons from Asian Tigers; Japan; Europe and America

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WEEK 2          

TOPIC: ECONOMIC LESSONS FROM ASIAN TIGERS, JAPAN, EUROPE AND AMERICA

CONTENT:

• Economic lessons from Asian tigers
• Economic lessons from Japan
• Economic lessons from Europe

Sup-Topic 1: Economic Lesson from Asia Tigers

Economic History of the Asian Tigers

The four Asian Tigers – Hong Kong, Singapore, South Korea and Taiwan consistently maintained high levels of economic growth since the 1960s, fueled by exports and rapid industrialization, which enabled these economies to join the ranks of the world’s richest nations.

Hong Kong and Singapore are among the biggest financial centers worldwide, while South Korea and Taiwan are important hubs of global manufacturing in automobile/electronic components and information technology, respectively.

Common characteristics of the four Asian tigers include:

• They focus on exports,
• They have educated populace
• They have high savings rates

FACTORS THAT ACCOUNT FOR THE RAPID DEVELOPMENT OF TIGER ECONOMIES

• High public and private saving rates: Savings were high in both the public and the private sectors. The incentive to safe was very high and this enabled capital to be accumulated for massive investments in the high income generating sectors.
• High life expectancy: This is made possible by adequate care of the people by government and this leads to high productivity.
• Highly developed capital and money markets: They pursued stringent credit policies and state-imposed below-market interest rates for loans to specific export-led industries.
• High level of information technology development: Their highly developed and breakthrough in information technology boost their external trade and increased foreign exchange earnings which are used for further investment.
• Purposeful, honest and articulate leadership: Their leaders were in their office to serve the interest of people and ensure that people enjoyed the good things of life.
• Export-based industrial policies: They effectively pursue industrial policies which supported massive exports to the rich industrialized nations of Europe and America.

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