W1 - Introduction and history Flashcards
(38 cards)
What contributed to Western early economic development?
- Imperialism
- Discovery of the new world
- Industrial revolution
What does NIE stand for?
Newly industrialised Economies
Who did the world bank class as the NIEs?
South Korea, Singapore, Taiwan and Hong Kong
When did the NIEs start developing?
Their rapid economic growth performance occurred since the 1960s
What did NIEs achieve for the world?
They changed the patterns of world trade and lifted millions out of absolute poverty
What halted the growth miracle?
The Asian financial Crisis
When was the Asian Financial Crisis?
1997-98
When did China join the NIE group?
1978
What is an example of trade interdependence in the region?
Regional Comprehensive Economic Partnership
Why did India pull out of the RCEP free trade agreement?
India pulled out because the removal of import tariffs would be too soon who were not ready yet to compete with other Asian countries such as Japan and S.Korea
What is another proposed trade agreement in the region?
The CP TPP (Comprehensive and Progressive Trans Pacific Partnership)
Who make up the ASEAN5?
Indonesia, Malaysia, the Philippines, Singapore, and Thailand
Name 3 notable national leaders for post-war growth in SE Asia?
- Park Chung-hee - S.Korea
- Lee Kuan Yew - Singapore
- Deng Xiaoping - China
What did these leaders have in common?
They were all in power for a long time with a Quasi Democratic political system.
What was common amongst the economic systems of the 4 Asian Tigers?
More capitalistic states with state intervention. There is more state intervention that in the West however they should still be classified as more capitalistic economies
What distinguishes the four asian tigers?
- Rapid (strong) growth
- Sustained growth
- High income economies (not an easy achievement)
Didn’t hit the middle income trap
What does modernisation theory predict?
Predicts that poor countries follow the same processes of developed economies and postulates that economic development precedes democracy
What is the flying geese hypothesis?
- Countries/ Economies climb a ladder in terms of industrial output complexity
- Called flying geese because birds at the back catch up to the birds at the front
- The bird at the front is Japan here
- Dynamic comparative advantage is behind this hypothesis
What is dynamic comparative advantage?
Dynamic comparative advantage is that you have a lower opportunity cost of producing a good or service. Dynamic means that its changing. The goods that you have a lower opportunity cost of producing changes over time.
Do experiences in South East Asia reflect the findings of modernisation theory?
No, they debunk it. Because countries in Asia showed there was no one size fits all model. The Asian tigers show this as they all developed differently. Economic development is not a precondition for democracy as shown by all the Asian countries listed other than Korea.
What are Rostow’s stages of economic growth?
- Traditional society
- Pre-conditions for take-off
- Take off
- Drive to maturity
- Age of high mass consumption
Do experiences in South East Asia reflect the findings of Rostow’s growth theory?
No, not all countries start with the same endowment geographically or politically and hence do not all follow the same process. Some may skip stages as they are not easily identifiable
What can the flying geese hypothesis be broken down into?
- Intra-industry aspect
- Inter-industry aspect
- International aspect
What is the intra-industry aspect?
Product development within a particular developin g country with a single industry growing over the processes
