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PRESENTED BY:

AMIT KUMAR JAIN

THE ASIAN
TIGERS
AKHIL GOYAL

CONTENTS

INTRODUCTION
CHARACTERISTICS
SINGAPORE
SOUTH KOREA
TAIWAN
HONG KONG
GLOBAL RANKINGS
1997 ASIAN CRISIS
IMF
INDIA & ASIAN TIGERS

INTRODUCTION
1)The 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.
2) These Nations And Areas Were Notable For Maintaining Exceptionally
High Growth Rates for 3 decades (In Excess Of 7 Percent A Year).
3) Rapid Industrialization Between The Early 1960s And 1990s.
4)By The 21st Century, All Four Had Developed Into Advanced And Highincome Economies, Specializing In Areas Of Competitive Advantage.
5)For Example, Hong Kong And Singapore Have Become World-leading
International Financial Centers,
6)Whereas South Korea And Taiwan Are World Leaders In Manufacturing
Information Technology.

Source : en.wikipedia.org/wiki/Four_Asian_Tig

CHARACTERISTICS

1) Asian tigers pursue export oriented policies.

2) Asian country allows markets to compete internationally.

) International trade is large part of economy.
) Low trade protection.
3) 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.
4) 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.

CHARACTERISTICS
5) Have high education levels.
) Emphasize vocational and technical training.
) Accelerates the adoption of new technology and know how.
) Achieved universal primary education by 1965
6) Asian Tigers tend to save more.
) People deposit savings into banks and banks lend to businesses.
) Businesses buy machines and equipment.
7) Strengthens exports and weakens imports.
8) Asian currencies are stable (low volatility).

SINGAPORE

Total Population - 54,12,000

Literacy Rate - 98%

ECONOMIC CONDITIONS

Total Expenditure On Health As % Of GDP

- 4.1%

Life Expectancy At Birth M/F (Years, 2012)

- 80/85

GDP Growth 4.1% (2013)

Inflation (Consumer Price) -2.4% (2013)
Export- 410.3 USD Billion
Unemployment- 1.9%

TOP 5 PRODUCTS EXPORTED BY

SINGAPORE
Electronic Equipment:

$123,975,933,000 (30.2% Of Total

Exports)
Mineral Fuels Including Oil:
Machinery:

$71,444,286,000 (17.4%)

$56,098,881,000 (13.7%)

Organic Chemicals:

$18,054,558,000 (4.4%)

Optical, Technical And Medical Apparatus:

(3.8%)

$15,401,575,000

SINGAPORE
Foreign Direct Investment And A State-led Drive
One Of The Least Corrupt Countries
Skilled Workforce
Depends Heavily On Exports And Refining Imported Goods
Tourism (Medical Tourism)

SOUTH KOREA
DEMOGRAPHIC FACTOR
Total Population

- 49,039,986

Literacy Rate

97%

Total Expenditure On Health As % Of GDP

Life Expectancy At Birth M/F (Years, 2012)

Sanitation Facility Access

IMPROVED:
Urban: 100% Of Population

7.2%
- 77/83

ECONOMIC CONDITIONS
GDP Growth 2.8% (2013 Est.)
Inflation (Consumer Price) -1.1% (2013)
Export- 557.3 USD Billion
Unemployment- 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 KOREA
Semiconductors
Wireless Telecommunications Equipment
Motor Vehicles
Auto Parts
Computers
Display
Home Appliances
Wire Telecommunication Equipment

SOUTH KOREA
Heavily Dependent On International Trade
Outward-looking Strategy In Early 1960s
Government Initiatives
Huge Multinational Conglomerates

TAIWAN
ECONOMIC CONDITIONS
Total Population
Literacy Rate

- 23,359,928
-

96.1%

Life Expectancy At Birth M/F (Years)

- 77/83
Infant Mortality Rate -

2.2 % (2013 Est.)

Inflation (Consumer Price)

1.1% (2013)
Export

305.8 USD

Billion
4.49

Deaths/1,000 Births
Population Growth Rate

GDP Growth

Unemployment

4.1%

Population Below Poverty Line

- 0.25%

GDP - Composition By Sector Agriculture :2%

- 1.5%

TOP PRODUCTS EXPORTED BY

TAIWAN
Electronics
Flat Panels
Machinery
Metals
Textiles
Plastics
Chemicals
Opticals
Photographic
Measuring

TAIWAN
19-point Program Of Economic And Financial Reform
Help Of USAID
Liberalized Market Controls

HONGKONG
ECONOMIC CONDITIONS
Total Population
Literacy Rate

- 7,112,688
-

93.5%

Life Expectancy At Birth M/F (Years,

2012) - 80/86
Infant Mortality Rate -

2.2 % (2013 Est.)

Inflation (Consumer Price)

4.4% (2013)
Export

456.4 USD

Billion
2.71

Deaths/1,000 Births
Population Growth Rate

GDP Growth

- 0.41%

Unemployment

3.1%

Population Below Poverty Line

19.6%
GDP - Composition By Sector Agriculture :0%

TOP PRODUCTS EXPORTED BY

HONG KONG
Electrical Machinery And Appliances
Textiles
Apparel
Footwear
Watches
Clocks
Toys
Plastics
Precious Stones

HONG KONG
Rapid Industrialization Driven By Exports
Low Taxation And Free Trade
Service-based Economy In The 1980s
GDP Grew 180 Times (1961~1997)
Largest Re-export Center

GLOBAL RANKINGS

Source : www.doingbusiness.org/ranking

THE 1997
ASIAN
FINANCIA
L CRISIS

ASIAN CRISIS
The 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.

SINGAPORE
Singapores 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 system
The establishment of an adjustable wage system, and (national wage council)
Controls on bank lending in the Singapore dollar.

SOUTH KOREA
The 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 failed
To 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.

TAIWAN
Economy faced a downturn in 2009
Heavy 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 KONG
HONG KONG survived the Asian crisis due to its FISCAL POLICY
Saving of the budget surplus
Fixed exchange rate.

INTERNATIONAL
MONETARY FUND
The 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 deficits
Allow insolvent banks and financial institutions to fail
Aggressively raise interest rates

INDIA & ASIAN

TIGERS

TRADE
Asian financial crisis of 1997
Indias look-east policy
Indias 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 2002
Factor endowment theory agricultural export from india and technology
from the tigers

LESSONS FOR INDIA

Organic Development by emphasis on sectors with competitive advantage
Investment in Education
Doing away with political bottlenecks
Striving for reducing fiscal deficit
Promotion of tourism
Promote spirit of patriotism
Improving savings rate
Encouraging FDIs over FIIs
Development and efficient utilization of ports

INDIA, THE NEW ASIAN

TIGER?
Abundance of natural resources
Large pool of educated workforce
Huge markets
Language, cultural and educational facilities
Research and development opportunities
Skilled management personnel