TIGER ECONOMY

Scopes of Reform

-Easier access to credit could reduce saving and encourage spending during times of recession

-Asia's low rate of consumption and borrowing means that it has huge scope to make consumption the engine of growth over the next decade

In the name of Rashedul Hasan Stalin

Most gracious; Not merciful

GENERAL CHARACTERISTICS

I don't have 60 slides, Pinky Promise

PROBLEMS?

-nations were enjoying a dramatic upswing in economy, since they enjoyed a profitable balance of trade

- investment capital flowing into the nations and an increase in export activity,

- those nations were in turn able to also increase import activity, allowing consumers to enjoy goods and services not produced within those nations.

- The end result was an emerging market economy that was strong, vibrant, and ultimately benefited just about everyone involved in the spurt of economic growth.

- Often criticized as inflexible because of huge dependence on external demand

- In September 2008, Ireland became the first eurozone country to officially enter recession after the bursting of the bubble.

- The economy was impacted by a large reduction in investment in the worldwide information technology (IT) industry. Domestic companies suffer due to export cuts.

-Smaller economies hugely dependent on export find it hard to adjust

- Low corporate taxes fail to attract investment if profits are plunging and hence policy backfires (ex- Japan)

Reasons behind sudden rise?

- Countries are export driven

- Extremely cheap labour & people willing to find work

- Distinct Geographical Advantages ( Taiwan, Singapore)

- Thriving markets ( international and domestic)

- Investment friendly markets. Leading to job creation and generating greater Government revenue

- Tactful Governance (Huge spending in education system)

TIGER ECONOMY

What is a Tiger economy?

- Used to describe economies that went through rapid and unanticipated growth

- Economic growth resulted in the population enjoying a higher standard of living

- Term was first used to describe the economic phenomena that was occurring in the nations of Thailand, Taiwan, Singapore, Hong Kong, South Korea, and Japan

IRISH BOOM (CELTIC TIGER)

Success Stories- Singapore

- Irish Republic one of the ten richest countries in the world

- Over the past decade, Ireland's real domestic product per head has doubled,

and its national unemployment rate has declined from 16 percent to less than 5 percent.

- Important dates: 1950s and 1960s – Long term productivity boom

- Lean patch followed but in 1993, a sudden short-term output and employment boom recovered all the ground lost during the previous twenty years.

HOW?

- During early 1960s referred to as “this poor little market in a dark corner of Asia.”

- NOW, sports the world’s seventh largest GDP per capita and more than one in six households have $1 million in cash savings.

Important dates:

- In 1823, Sir Thomas Stamford Raffles, described as the “Father of Singapore,” officially declared Singapore a free and open port.

- thereof open to ships and vessels of every nation, free of duty, equally.

- Singapore linked resource-rich mainlands with global shipping routes

- Japanese invasion in 1942 halted the progress

- Queen Elizabeth to the rescue in 1945

- In late 2001, Prime Minister Goh Chok Tong commissioned an Economic Review Committee tasked with emphasizing how the country could encourage entrepreneurship.

- The report called for a Ministry of Entrepreneurship, liberalization of the financial sector to increase cash-flow to riskier start-ups, and government facilitation of a national private equity exchange.

- through its openness to free international trade and investment

- business-friendly industrial and tax policies

- its free secondary and low-cost higher education.

- The short-term aggregate demand push experienced since 1993 has been fuelled by the solid economic recovery in Europe and the United States

-It brought improvement in Ireland's international cost competitiveness, streamlined public finances, and low (net-of-inflation) interest rates

- The aggregate supply response to this expansion in demand has included a sharp increase in women's labour force participation rate, a large flow of new and return immigrants, and massive foreign direct investment, particularly from U.S. multinational corporations

Tiger Economy