Activity #5

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Office of the Vice President for Academic Affairs
COLLEGE OF ACCOUNTANCY AND FINANCE
SUBJECT Economic Development (ECON 306)
ACTIVITY # 5
NAME Jayceelyn J. Santos
PROGRAM/YEAR/SECTION BSA 1-8
ACTIVITY QUESTION 5. Compare and contrast the strategies for economic

development pursued by East Asian "Tiger"
economies (e.g., South Korea, Taiwan, Singapore)
and countries in Sub-Saharan Africa. What are the key
factors that have contributed to the divergent
economic outcomes between these regions? Discuss
the lessons that can be learned from both success
and failure stories in economic development.
ANSWER
The economic development strategies pursued by
the East Asian "Tiger" economies and countries in Sub-
Saharan Africa exhibit significant differences. East
Asian tigers are known for having strong and
sustainable economic development while Sub-Saharan
Africa countries are still struggling with
underdevelopment. Factors affecting the divergent
outcomes between these regions vary and are greatly
influenced by their unique historical, political, and
economic contexts.
The economies of the Four Asian Tigers rank

among the most prosperous and productive in the world
and have demonstrated sufficient resilience to endure
both domestic shocks like the credit crisis of 2008 and
global ones like the Asian financial crisis of 1997
(Abdulyakeen Abdulrasheed & Bashir Ibrahim Aminu,
2021). The economies of Hong Kong, South Korea
(Republic of Korea), Taiwan, and Singapore are
thought to have grown at the fastest rates over the
previous several years in the area. The countries that
make up the Four Asian Tigers share common
characteristics and have been fueled for economic
growth by a sharp focus on industrialization, strategic
policies, exports, an educated populace, and high
savings rates. The Four Asian Tigers have established
themselves as major contributors to the world economy
despite facing particular difficulties and intricate
geopolitical situations.
Hong Kong, which is frequently praised as a

leading global financial center, has produced a strong
economic climate with a focus on trade and financial
services. Because of its status as a special
administrative territory within China, Hong Kong has an
impressive GDP and a reputation for economic
freedom despite its comparatively small geographic
size. Its population, GDP per capita, and GDP as of the
most recent data all demonstrate its tenacity and strong
economic performance, confirming its status as one of
Asia's most powerful economies (The Four Asian
Tigers: Economic Triumphs and Global Impact, 2024).
Singapore is renowned for its unwavering
dedication to economic planning that achieves
openness and low levels of corruption as well as its
innovative approach to innovation. Because of its
strong regulatory framework, protected property rights,
and promotion of the private sector, it has established
a position for itself as a symbol of economic progress
and stability. Singapore has a small population, but its
GDP and GDP per capita show how strong its economy
is, supporting open governance and creating a
favorable business environment (The Four Asian
Tigers: Economic Triumphs and Global Impact, 2024).
Once regarded as having some of the weakest

economies in Asia and Africa, South Korea has
experienced a dramatic transition due to import
restrictions, directed credit, and a strictly supervised
economic system. Over the years, it demonstrated
perseverance and the capacity to withstand economic
setbacks, solidifying its position as a top global maker
of automobiles and numerous technology components.
All of those were represented in the rising GDP and
GDP per capita of South Korea. Its strong industrial
foundation and focus on innovation keep opening doors
for long-term economic growth and reaffirming its
crucial position in the world's manufacturing system
(The Four Asian Tigers: Economic Triumphs and Global
Impact, 2024).
With its amazing GDP numbers and strong growth
rate, Taiwan has solidified its position as a major
economic force. It has also shown extraordinary
economic resilience and development by placing a
significant emphasis on export-oriented tactics. Its
dedication to technological innovation and trade
strategies remains the cornerstone of its economic
success, despite geopolitical challenges and
uncertainty in the global economy. As technology and
industry continue to advance globally, Taiwan is
establishing itself as a major role in the Asian economy
(The Four Asian Tigers: Economic Triumphs and Global
Impact, 2024).
Moreover, other key factors such as educational

advancement, strong central leadership, focusing
heavily on promoting local content, and being guided
by the principles of community concern are the
foundation considered by the Asian tigers that
contribute to driving their economic development
(Abdulyakeen Abdulrasheed & Bashir Ibrahim Aminu,
2021). Asian Tigers modeled their educational system
after practicality and problem-solving, realizing the
importance of education for development and
economic progress. Such progress was made possible
by an effective, orderly, and goal-oriented public
education system. High levels of literacy and cognitive
skills were made possible by the four countries' 1965
realization of universal primary education (Schenk,
2008; Chant, & Cathy, 2009). Without major internal
obstacles, all four Tigers had a robust central
leadership that allowed them to successfully guide the
economy's course, indicating that they all enjoyed a
high degree of legitimacy. Because they were able to
sustain the people's economic prosperity, the leaders
have significantly contributed to the survival of the
leadership. The government leaders and authorities of
these countries had considerable motivation to
aggressively seek sustainable development with
stability and flexibility. Furthermore, promoting local
content is a major priority for several countries, most
notably Singapore, South Korea, and Taiwan. Other
initiatives include transferring technology from foreign
firms to the domestic economy and designing industrial
policies that create backward links between foreign
investors and domestic supplier firms. As their
instruments for this policy, they have linked financial
incentives to companies with economic success and
municipal development aims. Last but not least, The
Asian Tigers are driven by the values of secularism,
order and peace in the community, hard effort, respect
for established authority, cooperation with the
government, and family loyalty. These ideas allowed
the Asian Tigers and others to develop in a way that
goes against the grain of Western models.
While Asian tigers have demonstrated exceptional

economic success, Sub-Saharan African nations are
fighting to preserve their economic prosperity and
stability. Africa is undoubtedly one of the world's richest
continents in terms of natural and mineral resources,
yet it is also one of the poorest (Nduku, 2014). Africa
has been sailing for many decades, and many critical
onlookers have seen it as a collapsed state like a
troubled and sinking ship being tossed up and down on
a rough sea with no coast to anchor in. Numerous
underlying issues, such as the difficulties causing its
declining economic status or development crises, have
been established and identified by numerous research.
These are poor leadership or political instability and
corruption, poverty, the system of education and
unemployment, and underinvestment in infrastructure.
The African sub-region's political leadership is

known for violating the constitution they claim to uphold
and for showing little concern for the aspirations of the
people. In their desperate attempt to hold onto power,
leaders have used every kind of deception, which has
resulted in bad governance, a political instability crisis,
and corruption. Nothing is spared in the service of self-
interest, so long as the goal is met. It is an undeniable
reality that for the last fifty years or more, African
countries have experienced periods of political
instability. In this setting, natural resource plundering,
politics of exclusion and deprivation to maintain the
balance of power, and the transformation of liberation
heroes into dictators have been witnessed in the
majority of third-world countries. On the other hand,
corruption has persisted as a barrier to the
advancement of democratic initiatives throughout
Africa. It restricts economic growth in that it reduces
public resources, discourages private saving and
investment, and makes it more difficult to employ
government revenue and development assistance
funds effectively (Policy Forum, 1997).
Poverty in Sub-Saharan Africa is the cause of

hunger, aids, squalor, and disease in the citizens.
Problems circulating the continuance of poverty
experience are still because of corrupt leadership
throughout the region. Many investments and
resources are being wasted by the officials instead of
putting them in the proper allocation that could help
reduce the poverty experience in the state which
contributes to a slowdown of economic progress.
African educational system is facing significant

challenges amidst the rapid changes in today’s
dynamic society. Researchers have concluded that the
situation drastically became difficult as the number of
graduates continued to soar, coupled with the shortage
of vacancies. As education is the facilitator of economic
growth in a country through human capital, the
struggles in maintaining a good educational system
hinders graduates from possessing fully empowered
and employable skills. This situation leads to an
increase in unemployment which is a threat to the
economy’s growth.
Lastly, underinvestment in infrastructure across

the region challenges productivity, according to the
Development Bank. Lack of funding for building the
needed infrastructure such as roads,
telecommunications, water, electricity, and more
decreased the workforce productivity by around 40%
according to the World Bank Estimates. The failure to
provide the crucial infrastructure became a major risk
to businesses in the region affecting its slow production
levels and impacting its slow-paced economy.
Policymakers and other leaders can learn a lot

from the successes and failures of the Asian Tigers and
the Sub-Saharan African nations, knowledge that will
help them manage the economy in which they live. To
attain success, good governance, a sharp focus on
industrialization, strategic policies, exports, an
educated populace, and high savings rates are
outstanding factors a country must possess just like
how Asian Tigers utilize and implement these core
strategies for a high economic growth. In contrast, a
lack of good governance that involves corruption and
political instability, poverty, a low system of education,
unemployment, and underinvestment in infrastructure
have been the factors that could drive the failure in the
economic development of countries driven by the
experience of Sub-Saharan Africa. The lessons learned
from these successful and failed experiences offer
some useful planning and policy guidance for further
progress in the regions throughout the whole world.
Various leaders across the world could attain
development strategies to be included in their
development plan and could also analyze ways on how
the challenges in the economy driven by the failure in
the economic prospect of such countries can be
addressed and properly managed. Furthermore,
individuals or the populace as a whole could draw
lessons from this that could aid in their acquisition of
information or knowledge to call for actions that could
contribute to the economic development of the nation
in which they reside.
REFERENCES:
Abdulyakeen Abdulrasheed, & Bashir Ibrahim Aminu. (2021). An Appraisal of

Developmental Crises in Africa: Lessons From the Asian Tigers. Social Science
Research Network. https://doi.org/10.2139/ssrn.3904872
The Four Asian Tigers: Economic Triumphs and Global Impact. (2024, April 23).
SuperMoney. https://www.supermoney.com/encyclopedia/asian-tiger-countries
Fleming, S. (2019, September 3). What are the biggest challenges to economic growth
across sub-Saharan Africa? World Economic Forum.
https://www.weforum.org/agenda/2019/09/economic-growth-sub-saharan-africa-
challenges-risks/
Economic Issues No. 23--Promoting Growth in Sub-Saharan Africa. (2024). Imf.org.
https://www.imf.org/external/pubs/ft/issues/issues23/index.htm

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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

ACTIVITY QUESTION 5. Compare and contrast the strategies for economic

The economies of the Four Asian Tigers rank

Hong Kong, which is frequently praised as a

Once regarded as having some of the weakest

Moreover, other key factors such as educational

While Asian tigers have demonstrated exceptional

The African sub-region's political leadership is

Poverty in Sub-Saharan Africa is the cause of

African educational system is facing significant

Lastly, underinvestment in infrastructure across

Policymakers and other leaders can learn a lot

Abdulyakeen Abdulrasheed, & Bashir Ibrahim Aminu. (2021). An Appraisal of

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