PowerPoint Presentation

THE ASIAN TIGERSPRESENTED BY:AMIT KUMAR JAIN

AKHIL GOYAL

BEVAN GIDEON

CONTENTSINTRODUCTIONCHARACTERISTICSSINGAPORESOUTH KOREATAIWANHONG KONGGLOBAL RANKINGS1997 ASIAN CRISISIMFINDIA & ASIAN TIGERS

INTRODUCTIONThe Asian Tigers Or Asian Dragons Is A Term Used In Reference To The Highly Free And Developed Economies Of Hong Kong, Singapore, South Korea, And Taiwan. These Nations And Areas Were Notable For Maintaining Exceptionally High Growth Rates for 3 decades (In Excess Of 7 Percent A Year). Rapid Industrialization Between The Early 1960s And 1990s. By The 21st Century, All Four Had Developed Into Advanced And High-income Economies, Specializing In Areas Of Competitive Advantage. For Example, Hong Kong And Singapore Have Become World-leading International Financial Centers,Whereas South Korea And Taiwan Are World Leaders In Manufacturing Information Technology. Source : en.wikipedia.org/wiki/Four_Asian_TigersCHARACTERISTICSAsian tigers pursue export oriented policies. Asian country allows markets to compete internationally.International trade is large part of economy.Low trade protection.Asian tigers have low price distortions.Distortion - the market has A price that is not set by the market. Distortions are caused by taxes, subsides, price controls, regulations, etc. Asian tigers build larger factories.Country is supplying to international market.Economies of scale - the larger A factory, the lower is the per-unit manufacturing costs.CHARACTERISTICSHave high education levels.Emphasize vocational and technical training.Accelerates the adoption of new technology and know how.Achieved universal primary education by 1965Asian Tigers tend to save more.People deposit savings into banks and banks lend to businesses.Businesses buy machines and equipment.Strengthens exports and weakens imports.Asian currencies are stable (low volatility).SINGAPORETotal Population - 54,12,000Literacy Rate - 98% Total Expenditure On Health As % Of GDP - 4.1%Life Expectancy At Birth M/F (Years, 2012) - 80/85GDP Growth 4.1% (2013)

Inflation (Consumer Price) -2.4% (2013)

Export- 410.3 USD Billion

Unemployment- 1.9%

Exchange Rates:Singapore Dollars Per Us Dollar - 1.25ECONOMIC CONDITIONSTOP 5 PRODUCTS EXPORTED BY SINGAPOREElectronic Equipment: $123,975,933,000 (30.2% Of Total Exports)Mineral Fuels Including Oil: $71,444,286,000 (17.4%)Machinery: $56,098,881,000 (13.7%)Organic Chemicals: $18,054,558,000 (4.4%)Optical, Technical And Medical Apparatus: $15,401,575,000 (3.8%)SINGAPORE Foreign Direct Investment And A State-led DriveOne Of The Least Corrupt CountriesSkilled WorkforceDepends Heavily On Exports And Refining Imported GoodsTourism (Medical Tourism)SOUTH KOREATotal Population - 49,039,986Literacy Rate - 97% Total Expenditure On Health As % Of GDP - 7.2%Life Expectancy At Birth M/F (Years, 2012) - 77/83

Sanitation Facility Access IMPROVED:Urban: 100% Of PopulationRural : 100% Of Population

DEMOGRAPHIC FACTORECONOMIC CONDITIONSGDP Growth 2.8% (2013 Est.)Inflation (Consumer Price) -1.1% (2013)Export- 557.3 USD BillionUnemployment- 3.2%Population Below Poverty Line - 16%GDP - Composition By Sector - Agriculture: 2.6% Industry: 39.2% Services: 58.2%

TOP PRODUCTS EXPORTED BY SOUTH KOREASemiconductorsWireless Telecommunications Equipment Motor Vehicles Auto Parts Computers Display Home AppliancesWire Telecommunication Equipment Steel ShipsPetrochemicalsSOUTH KOREA Heavily Dependent On International TradeOutward-looking Strategy In Early 1960sGovernment InitiativesHuge Multinational ConglomeratesTAIWANTotal Population - 23,359,928Literacy Rate - 96.1% Life Expectancy At Birth M/F (Years) - 77/83Infant Mortality Rate - 4.49 Deaths/1,000 BirthsPopulation Growth Rate - 0.25%ECONOMIC CONDITIONSGDP Growth 2.2 % (2013 Est.)Inflation (Consumer Price) - 1.1% (2013)Export - 305.8 USD BillionUnemployment - 4.1%Population Below Poverty Line - 1.5%GDP - Composition By Sector - Agriculture :2% Industry : 29.4% Services :68.6%TOP PRODUCTS EXPORTED BY TAIWANElectronics Flat Panels Machinery MetalsTextiles Plastics Chemicals Opticals PhotographicMeasuring Medical InstrumentsTAIWAN 19-point Program Of Economic And Financial ReformHelp Of USAIDLiberalized Market ControlsHONGKONGTotal Population - 7,112,688Literacy Rate - 93.5% Life Expectancy At Birth M/F (Years, 2012) - 80/86Infant Mortality Rate - 2.71 Deaths/1,000 BirthsPopulation Growth Rate - 0.41%ECONOMIC CONDITIONSGDP Growth 2.2 % (2013 Est.)Inflation (Consumer Price) - 4.4% (2013)Export - 456.4 USD BillionUnemployment - 3.1%Population Below Poverty Line - 19.6%GDP - Composition By Sector - Agriculture :0% Industry :6.9% Services :93%TOP PRODUCTS EXPORTED BY HONG KONGElectrical Machinery And AppliancesTextilesApparelFootwearWatches ClocksToysPlasticsPrecious StonesPrinted MaterialHONG KONG Rapid Industrialization Driven By ExportsLow Taxation And Free TradeService-based Economy In The 1980sGDP Grew 180 Times (1961~1997)Largest Re-export Center

GLOBAL RANKINGSSource : www.doingbusiness.org/rankings

THE 1997 ASIAN FINANCIAL CRISIS

ASIAN CRISISThe ASIAN FINANCIAL CRISIS was a period of financial recession beginning in July 1997 and raised the fears of worldwide economic meltdown due to financial contagion.Foreign DEBT-TO-GDP ratios rose from 100% to 167% in 199396, then shot up beyond 180% during the worst of the crisis.Indonesia, south Korea and Thailand were the countries most affected by the crisis. Hong Kong were also hurt by the slump. The people's republic of china, India, Taiwan, Singapore were less affected.SINGAPORESingapores resilience in the face of the large and adverse economic shocks triggered by the Asian financial crisis can be traced to the four foundations it has laid over the years. These are:The maintenance of strong economic fundamentals, including a healthy banking sector,The adoption of a managed exchange rate systemThe establishment of an adjustable wage system, and (national wage council) Controls on bank lending in the Singapore dollar.SOUTH KOREAThe economic downfall started when the hanbo group was found bankrupt and the korean government was found to be deeply corrupted.They began reexamining their banking practices and started calling in short-term loans, thereby "creating a vicious circle of liquidity . This, in turn created a "domino effect" as more companies failedTo avoid withdrawal of private lending , the interest rate was kept 4% above us treasury bills. To restructure its short-term debts ,lengthening their maturity and providing additional temporary credits to help meet the interest obligation.TAIWANEconomy faced a downturn in 2009Heavy reliance on exports which in turn made it vulnerable to world markets Government launched a US$5.6 billion economic stimulus package Provided financial incentives for businesses, and introduced tax breaks HONG KONGHONG KONG survived the Asian crisis due to its FISCAL POLICYSaving of the budget surplusFixed exchange rate.INTERNATIONAL MONETARY FUNDThe IMF created a series of bailouts ("rescue packages") to restore Asian currency.BUT THE SUPPORT WAS CONDITIONAL..It demanded drastic economic reforms influenced by neoliberal economic principles called a "structural adjustment package" (SAP).SAP included-Government spending to reduce deficitsAllow insolvent banks and financial institutions to failAggressively raise interest ratesINDIA & ASIAN TIGERSTRADEAsian financial crisis of 1997Indias look-east policyIndias membership with the asean of which four of the six east asian tigers are a part.India became a dialogue partner of asean in 1992 and summit level partner in 2002Factor endowment theory agricultural export from india and technology from the tigersLESSONS FOR INDIAOrganic Development by emphasis on sectors with competitive advantage Investment in EducationDoing away with political bottlenecksStriving for reducing fiscal deficitPromotion of tourismPromote spirit of patriotismImproving savings rateEncouraging FDIs over FIIsDevelopment and efficient utilization of portsINDIA, THE NEW ASIAN TIGER?Abundance of natural resourcesLarge pool of educated workforceHuge marketsLanguage, cultural and educational facilitiesResearch and development opportunitiesSkilled management personnel