Economic development of Asian tigers

Professor: Presented by:Maja Luković Sandra Luković 2013/500Milan Milanović Module: MarketingDate: 15.05.2015

Economic development• Economic development ideally refers to the

sustained, concerted actions of communities and policymakers that improves the standard of living and economic health of a specific locality.

• It is an increase in living conditions, improvement of the citizens self-esteem needs and free and a just society

• Economic development involves of human capital, increasing the literacy ratio, improve important infrastructure, improvement of health and safety and others areas that aims at increasing the general welfare of the citizens

• big difference between economic development and economic growth

Highly developed economies since 1970s

• South Korea

• Hong Kong

• Singapore

• Taiwan

What are the four Asian tigers/dragons1. The term Four Asian Tigers or East Asian Tigers2. Maintaining high growth rates and repaid

industrialization3. Attention has increasingly shifted to other Asian

economies4. The four Tigers share a range of characteristics whit

other Asian economies5. Key differences include initial levels of education

and physical access to world markets

• All four territories had a strong degree of Chinese influence, with most having a large ethnic Chinese community

• During the 1960's they had an abundance of cheap labor

• They had non-democratic and relatively authoritarian political systems during the early years

• 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.

Reasons to Asian Miracles • 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

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

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)

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

Taiwan

• 19-point program of Economic and Financial Reform• Help of USAID• Liberalized market controls

Conclusion• 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

Bibliography/References

• https://finansijskoposlovanje.files.wordpress.com/2013/10/azijski-tigrovi-kao-model-razvoja-nacionalne-ekonomije.pdf

• http://www.whatiseconomics.org/economic-development

• http://en.wikipedia.org/wiki/Four_Asian_Tigers

Thank you for attention…