Economics of Singapore and Hong Kong Essay Example | Topics and Well Written Essays - 2500 words

Economics of Singapore and Hong Kong - Essay Example The Asian countries of India, China Korea, Taiwan, Hong Kong, Singapore, Indonesia, and Malaysia are notable examples NICs and their dramatic successes in economic growth have often been referred to as the East Asian Miracle. Other Asian countries like China and India have also achieved successes in economic growth. The 'economic miracle' of these East Asian countries is however not exclusive to Asia as countries in the Americas like Chile, Brazil and Mexico have also achieved appreciably high growth rates in their economies and could thus be referred to as NICs as well. It must be said though the growth rates vary amongst all the NICs and as such some growths may be relatively higher compared to others in other NICs. Countries like China, India Singapore and Hong Kong however standout of the rest due to the rapid nature of their growth within a space of about 30 years. Also, the use of NICs is a matter of definition and as such a country like South Africa that was largely secluded f rom the international economy due to its apartheid policies may now be categorised as an NIC by some, while others may classify it as a developed country. This essay will first conduct a generalised or panoramic view of the features that underlie the development experiences of NICs before undertaking a closer look at the experiences of selected NICs. It must be said that though the development experiences may be very varied, some common cardinal features can be seen in the experiences of all NICs. Most NICs were able to achieve high growth rates by instituting market reforms that favoured exports. (Hamilton 1987) There was also a strong emphasis on value added manufacturing that changed their economies from predominantly agrarian economies into industrial and manufacturing based economies. Increased capital investments from foreign and domestic sources played a key role in the development experiences of NICs and so did the development of domestic corporations that could compete with other foreign corporations both on the domestic market and on the regional or international markets as well. (Bhagwati, 1996) Typical examples are the automotive, steel and ship building companies of Korea. Political leadership also contributed significantly to the high growths in the economies of NICs. As stated earlier, though the 'authoritarian' thesis is a disputed one, the fact that relative political stability pertained in the countries that recorded significant growths in their economies goe s to show that political leadership played a crucial role in the development experience of NICs (Combie, 2000). The next segment of this essay will undertake a closer look at economies of Hong Kong and Singapore."Singapore, a leading trading power and financial centre, is one of the quintets of trillion dollar economies of Asia. Over the past two decades, the government has been kept minimum. Still the Government bodies such as sovereign wealth fund Temasek control corporations responsible for 60% of GDP. The distinguishing characteristic of Singapore's Economy is the low level of corruption, stable prices one of the highest per capita gross domestic products (GDP) in the world. The country has open business environment and one of the