Its aim is to make accessible to a broad readership of nonspecialists some of the economic research being produced in the International Monetary Fund on topical issues.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. The region has turned to be the home of the global significance as well as the most affluent economy consisting of countries such as; Japan, China, Hong Kong, Singapore South Korea and Taiwan.
There have been numerous and major factors that have turned the economic success of the region to be a positive gain to the countries Chang, Some of the key constructive factors that have contributed to the developments of the positive economic status in the region includes: The success of the regional economic developments can highly be adopted in many other developing countries.
Literature review The most successful developing countries over the last over the last half a century have come from East Asia. There have been numerous analyses on the success and also based on case studies econometric data, and economic theory, offers a list of the ingredients that contributed to that success Kwon et al, Researchers have been done, concerning the model deployed by the East Asian economies and how the countries have managed to navigate through economic crises.
World Bank and financial institutions, has conducted the applicability of the development model applied by the East Asian countries into the developing countries. The development evidence of the East Asian financial system has been impressive, especially when compared to that of other developing countries.
How can such a record be accounted for? What lessons can we draw from it? What has been the role of public policy? These are questions that have aroused heated debate in recent years, especially among the mainstream neoclassical school and the non-orthodox or revisionists Saggi, How economies grew, how industrial structures were transformed, how governments intervened in solving coordination problems, pursuing efficient policies, making credible commitments, etc.
Different writers select different characteristics, often depending on what country or countries they are studying, and, at times, in function of their ideological preferences. At the clear risk of over-simplification, but so as to maintain the discussion manageable, four major features will be selected that have, arguably, been both common to, and crucial for, the experiences of Japan, Taiwan and South Korea over the periods here examined Chang, The countries, Korea, Taiwan, Hong Kong, and Singapore, followed Japan, which itself was the very first country that succeeded, becoming an industrialized country outside the famous western economy, and achieved similar economic success in the phase of development following the Second World War from the s to the s and named as the four Asian Tigers.
Then the three newly Industrializing economies NIES of Southeast Asia, Thailand, Malaysia, and Indonesia also managed to take off becoming large enough to reach the respective status of middle income countries in the second phase from the s to the s.
ChangWorld Bank,Jomo, The model has different defining clauses and includes factors such as state control over finance, direct support for state owned enterprises by the government, import substitution industrialization in heavy industry and shift to export-led industry, a high dependence on export markets and a high rate of domestic savings among other practices.
For example, the models work through the act of reducing barriers to international trade such as tariffs deregulation led to reductions in government control with the pushing for free trade practices. According to World Bankthe intervention was not harmful, though still not helpful.
However, it is widely recognized now that the export-push strategies in East Asia are very much linked to selective industrial policy and state intervention actively promoted economic growth in the region.
According to Wadethe development of a concept of the governed market theory, explains the East Asian success by three causes; I high levels of productive investment. It is argued that such economic policies, incentives, controls and risk spreading mechanism allow them to sustain rapid development, which produces different level productions and its huge outcomes in the private sector.
It is unrealistic to assume that there is only one development model and it can be mostly agreed that nations have been taking their own or different ways of pursuing the EADM model with diverse development strategies.
Positives from the East Asian Model Diversity in ecosystem, population, ethnicity, religion, social structure, and political regime Equally great diversity in GDP, per capita income, and economic development High growth sustained over a long period almost throughout the region.
Associated with this high growth are high, savings and investment rates, active, but managed external opening, export orientation, industrialization, and general improvements in social indicators. Accomplishments and Characteristics of the East Asian Development Paradigm One of the major achievements of the model is the rapid economic growth of the region.
For example, the implementation of the model led to the real income per capital grow four times bigger than it was previously in Japan, Taiwan, Hong Kong, Singapore, and South Korea. Another accomplishment of the model was declining inequality. This is whereby; the positive gains and economic developments were evenly distributed throughout the populations.
Thirdly, the model led to a quick reduction of the technology gap through massive investment in human capital, importation of foreign technology, export orientation, and the opening of markets for foreign direct investment as a means of introducing advanced technology.
Finally, the model led to reduction of poverty rates in the region Saggi, Base as well as a low human development index, when compared to other countries. Less developed nations are countries that have not realized a considerable degree of industrialization in relation to their populations.
In most cases, they are said to have medium or poor standards of livelihood. There is a well-built relationship connecting low earnings and high populace growth.
Once an expansion strategy is chosen, the proper policy systems will in turn certainly be formed or laid down as the foot print to development, and in turn the outcome of economic growth is, to a greater extent, determined by whether the preferred developmental strategies are right or wrong.
If only the macroeconomic setting and government guiding principles are well thought-out, and not looking into positives and negatives of the given development plan, then a general idea of where the problems lie is impossible.As an amusing side note, in a science essay called "The Sight Of Home" Isaac Asimov once calculated how far an interstellar colony would have to be from Terra before Sol was too dim to be seen in the colony's night sky with the naked skybox2008.com out that colonies further than 20 parsecs (65 light-years) cannot see Mankind's Homestar, because Sol's apparent magnitude is dimmer than 6.
Competitiveness on a foreign market was an economic policy main objective in three countries. Successful development of the countries and deficiency of natural resources, that competitiveness should be reached in manufacturing industry sector.
To What Extent the East Asian Model Is Transferable To Other Developing Countries. Introduction The economic status of East Asia has become one of the most flourishing and positively growing regional economies in the globe in recent times and something to reckon with.
To What Extent the East Asian Model Is Transferable To Other Developing Countries Essay Sample. The economic status of East Asia has become one of the most flourishing and positively growing regional economies in the globe in recent times and something to reckon with.
The common strengths and weaknesses shared by the East Asian countries (economies) have helped to reinforce the misconception that there is a single East Asian model of economic development. To what extent the East Asian model is transferrable to other developing countries. In early 19th century, the western countries were said to be the only countries that had achieved significant economic development in the world.
The countries had shifted from farming economy to industrialised economy.