India is also beginning to take off in quite dramatic fashion, following to some extent the rapid boom in China.
However, historically the 'Tiger' Economies refers to Hong Kong, South Korea, Taiwan, Malaysia, and Singapore.
Hong Kong was the model that has been duplicated by the rest. It is interesting to note that in Hong Kong, Singapore and Malaysia, Britain governed them before independence. The trade links and contacts utilised by the UK is probably the main reason for this and not some old Imperialist propaganda! It is also important to recognise the large Chinese populations in these nations or the influence China has had on their indigenous culture.
The reasons for the growth of these nations have been many. It is often reckoned that:
- low Government spending has also encouraged high investment from overseas
- an emphasis on creating skilled workers in place of a reliance on natural resources
- excellent labour relations between employees and owners
- having a 'can-do' philosophy
- focusing on emerging markets and technologies
- adopting Japanese Production Methods
They have specialised in either Financial Investment or Information Technology.
South Korea is the world's largest shipbuilder and from the ashes of the Korean War they have created global multinationals such as Samsung, Hyundai and Daewoo, all permanent rivals of their more illustrious Japanese counterparts.
What are the future implications for the EU? Or for the USA? Or even Japan, who for so long has been the Asian economic superpower, but after the 90s and deflation, Japan may find it hard to regain its omnipotence.
These traditional Asian Tigers along with the likes of Thailand, rely heavily on exports. With the world currently in recession, fewer goods are being shipped abroad to the Western consumers who buy these goods due to their technical brilliance, and more often than not, their low price.
Many of the Tigers relied on Tourism also, but again more and more people are staying at home (incidentally, this factor is reported as having boosted our own Halfords company in the UK as more people bought camping equipment and bikes rather than jetsetting off across the globe), but where does it leave the Tiger economies?
It will be fascinating to watch African and Latin American nations who do not have vast natural resources trying to emulate the Asian Tigers. Whereas the other developing nations who do have vast natural resources may opt for the route that the likes of Dubai are going down by using their current wealth to prepare for the days when the oil runs out.
If we are to summarise the emergence of the Tigers it really is down to their committment to low cost and good quality.
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