Asian tigers

grow d seed of knowledge

1. Presented By : Subhi Bundela Shweta Solanki Sunil Chichra Supriya Jain Surbhi Ranade

2. Highly developed economies since 1970s Hong Kong Singapore South Korea Taiwan

3. 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.

4. 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.

5. 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

6. Reasons to Asian Miracles Focus on increasing exports High growth rates (excess 7 percent per year) Rapid industrialization Education of population H igh saving rates Small sized with small population Little or no natural resources

7. 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

8. Hong Kong 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

9. Singapore 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)

10. South Korea Heavily dependent on international trade Outward-looking strategy in early 1960s Government initiatives Huge national conglomerates

11. Taiwan 19-point program of Economic and Financial Reform Help of USAID Liberalized market controls

12. Economic Overview 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

13. 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.

14. Prior to the 1997- a success 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, E ducation in particular is cited as playing a major role in the Asian miracle D ecrease in the gap between male and female enrolments

15. 1997 Asian Crisis 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.

16. 2008 Financial crisis 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.