31 Aug The 4 Asian Tigers
Hong Kong, Singapore, Taiwan, and South Korea have their own niche. They have become greatly successful in what they do to the extent of being featured regularly on IMF’s world’s most stable as well as prosperous economies. These 4 Asian Tigers weren’t always as they are right now. How did they manage to climb up the financial scales? What important lessons can we learn from them? Read on to find out the answers to these frequently asked questions.
The Emergence of The 4 Asian Tigers
The Korean War of 1950-1953 along with the Second world war made room for a diminishing global economy and an unexpected trauma. Fortunately, recovery efforts were made and advances in telecommunications and air travel were achieved. This, of course, made room for friendly and beneficial relations among the four ‘tigers’.
In a bid to secure the workforce’s future, the four governments took it upon themselves to build major industrial estates, heavily invest in industrialization, implement compulsory education and offer foreign investors tax incentives. When it came to industrialization, these countries were undoubtedly unmatched. They began exporting plastics, toys, person technology and any other item that was high on demand.
Hong Kong becomes the first city among the four to get into financial services and away from the export market. This came due to its thriving stock exchange that was established way back in 1891. This, therefore, came as no shock. Backed by Singapore, these two countries are now recognized as two of the most financial and influential regions in the world. South Korea and Seoul have not been left behind either. Termed as ‘The Asian Miracle’, these are two of the most revered countries when it comes to innovative technology and electronics. This has worked out for them in plenty of ways. Two of them being additional recognition and a quick but steady growth.
Hong Kong – The First Asian Tiger
Why has Hong Kong taken first place among the 4 Asian Tigers? In the 1950s, its economy skyrocketed in an unprecedented manner. Medium and large sized organizations alike were greatly attracted to the affordable labor and beneficial tax incentives. This paved way for city-wide developments such as the construction of skyscrapers, train trucks, and public housing. The country’s sufficient affluence funded each of these projects. The 70’s and 80s were years where different phases of construction took place.
Hong Kong was recognized as one of the world’s most prosperous countries between 1961-1997. This was mainly because its Gross Domestic Product (GDP) increased by 180 times as compared to any other country. Its growth is assured, given its freedom from public debt and formidable regulation, not to mention its peaceful nature.
Taiwan: The Second Asian Tiger
Unlike the rest of the already mentioned tigers, Taiwan may not have an impressive wealth, but it does have a steady growth. Its GDP per capital in the start of the 1960s was just $170. Later in the year 2015, its GDP per capital grew to $22,469. Today, its per capita income goes beyond $45,000. The fact that it is notably close in terms of proximity to China has assisted greatly in its development. The strong education system, the high-speed trains, and breathtaking skyscrapers have made Taiwan one of the most futuristic countries of the Four Tigers, all thanks to the Chinese investment. Apple has its headquarters in Taiwan, Foxconn, where its products are manufactured and distributed. It has become a hub for the biggest electronic brands.
South Korea: The Third Asian Tiger
South Korea was once famous for its agricultural economy. However, it decided to adopt a unique and different strategy so as to pay off its dividends. Most of the 20th century was spent in boosting robotics, software development, electronics and the industrial sector in general. This was the boldest move they would ever make. Sure enough, it was worth it. South Korea boasts of one of the most developed economies. The years between 1962-1995 saw a massive GDP growth of 10% per year on average. This fact has been verified by the world bank. This boosted it to power status, hence giving it an upper hand above the rest of the other countries.
Singapore – The Fourth Asian Tiger
In all of South East Asia, Singapore is considered to have one of the most remarkable docks and imperative positions. Singapore shares a similar source of high economic expansion with Hong Kong: Finance. It emerged gradually as a trade hub mostly due to its local availability and positive reputation. In fact, Singapore is the leading country of all the 4 Asian Tigers in terms of GDP. As if this is not enough, over the years, it has received high volumes of foreign investment which is evident through its diverse expat community. It also prides itself in an expat society that is exceptionally diverse and one which has the highest overseas investments.
Lessons to Learn from the 4 Asian Tigers
First off, there’s no miracle or magic when it comes to strong development and financial success. These four countries all had one thing that played a huge role in their gradual but well-deserved success: Effective leadership. Given the circumstances, these four countries could attribute their widespread success to either strategic positioning or offering the right commodities at a time when they’re needed the most. Still, the anti-corruption measures and strong regulation of each the four ‘tigers’ has played a more superior role in preventing a build up of savings and capital as well as a huge public debt. This has enabled them all along to stay afloat even in the midst of unstable markets and a sinking economy.
To illustrate just how big their economy is, each of their combined economies totals up to 4.07% of the United Kingdom’s global economy. The Four East Asian Tigers’ joint economy added up to approximately 3.81% of the world’s economy. Often termed as the ‘Asian miracle’, the rapid escalation of the economy of these four nations has broken the bondage of external debt and borrowing.
The 4 Asian Tigers have made it clear that a nation’s economic growth solely lies upon the export-leaning trade facilitation and its economic guidelines as well. They have each benefited from the institution of free trade and these properly outlined strategies. It comes as no shock at all to see that each of these countries are on the top of their game.
Each of these countries has had a huge reliance on China’s economy and patronage. The past 50 years have seen China’s economy go through a number of alterations that have enabled the rest of the four countries to benefit from it. It has had a remarkable role in the visible economic alterations within the four countries.