ECON REVIEWER (1).pdf

< ECONOMIC DEVELOPMENT: QUIZ 2 > ASIAN GROWTH I. INTRODUCTION 1. Key drivers of growth i. Economic Reforms: Many Asian countries have undertaken significant economic reforms to open up their markets and improve business climates....

< ECONOMIC DEVELOPMENT: QUIZ 2 > ASIAN GROWTH I. INTRODUCTION 1. Key drivers of growth i. Economic Reforms: Many Asian countries have undertaken significant economic reforms to open up their markets and improve business climates. ii. Technological Advancements: Rapid technological adoption and innovation, particularly in information and communication technologies, have driven growth. iii. Globalization and Trade: Increased participation in global trade and investment has been crucial. Asian countries are major hubs in global supply chains. iv. Demographic Trends: A large and growing population provides both a vast labor force and a significant consumer market II. MAJOR ECONOMIES AND THEIR GROWTH DRIVERS / FUTURE TRENDS AND PROSPECTS ▫ Technological innovation ▫ Regional Cooperation ▫ Sustainability and Inclusivity ▫ Geopolitical Factors 1. CHINA i. Economic Reforms 1. Market-Oriented Reforms 2. Special Economic Zones (SEZs): Creation of SEZs to attract foreign investment and technology ii. Global Trade and Investment 1. Belt and Road Initiative (BRI) - A global development strategy aimed at enhancing regional connectivity and embracing an economic belt along the Silk Road 2. Export-Led Growth iii. Urbanization 2. India i. 1991 Economic Reforms - Liberalization policies that included reducing trade barriers, deregulating domestic businesses, and privatizing state-owned enterprises ii. Service Sector Growth 1. IT and Software Services iii. Policy Initiatives 1. "Make in India": A campaign to encourage national and international companies to manufacture their products in India 3. JAPAN i. Economic Miracle 1. Industrialization and technological advancement ii. Strong Industrial Base 1. High-Quality Manufacturing iii. Trade and Global Integration 1. Export-Oriented Growth iv. Government Policies 1. Abenomics - Japan has implemented a set of policies under Abenomics, including monetary easing, fiscal stimulus, and structural reforms, to revitalize its economy and address demographic challenges 4. SOUTH KOREA i. Industrialization and Technology ii. Export-Oriented Economy iii. Chaebols - Support for large family-owned conglomerates (e.g., Samsung, Hyundai) that drive industrial growth and export success 5. ASEAN Countries i. ASEAN Economic Community (AEC): Efforts to create a single market and production base with a free flow of goods, services, investment, and skilled labor ii. Manufacturing and Exports iii. Major Players 1. Indonesia: Large domestic market and resource-rich, focusing on infrastructure and manufacturing. a. Making Indonesia 4.0 - combines elements of both industrialization and structural change by focusing on the adoption of Industry 4.0 technologies to enhance productivity and competitiveness across various sectors 2. Vietnam: Rapid growth in manufacturing and export-oriented industries. a. Doi Moi policy - Vietnam's economic reforms have led to significant structural change, transitioning from a centrally planned economy to a socialist-oriented market economy. It has become a manufacturing hub in Southeast Asia 3. Thailand: Strong in automotive and electronics sectors, but facing political instability a. Thailand 4.0 - transition to a digital economy and the development of high-tech industries, with a focus on robotics, biotechnology, and smart agriculture 6. BANGLADESH i. Export-Oriented Garments ii. Overseas Remittances iii. Trade and Investment Policies  7. VIETNAM i. Đổi Mới Policy: Economic reforms introduced in the late 1980s, transitioning from a centrally planned to a market-oriented economy. ii. Export Growth 8. PHILIPPINES i. BPO Industry ii. Remittances iii. Build, Build, Build Program - Focus on improving infrastructure to support economic growth. 9. PAKISTAN i. Strategic Location ii. Agricultural and Textile Sectors III. AVERAGE GROWTH RATE (2019 – 2023) 1. NOTABLE PERCENTAGES i. CHINA – 8.1% in 2021 ii. INDIA - -7.3% in 2020 and 8.9% in 2021 iii. JAPAN – n/a iv. SOUTH KOREA – n/a v. ASEAN REGION – n/a vi. BANGLADESH – 8.2% in 2019 vii. VIETNAM – 8% in 2022 viii. PHILIPPINES - -9.6% in 2022 ix. PAKISTAN – 6% in 2022 x. SRI LANKA - -9.2% in 2022 2. SUMMARY Average Growth Rate (2019-2023) i. China 4.7% ii. India 3.4% iii. Japan 0.8% iv. South Korea 1.6% v. ASEAN Region 2.8% vi. Bangladesh 6.2% vii. Vietnam 5.4% viii. Philippines 5.5% ix. Pakistan 3.4% x. Sri Lanka -0.6% IV. POST PANDEMIC ECONOMIC STRATEGIES 1. CHINA i. Economic Rebalancing  1. Domestic consumption ii. Infrastructure Investment 1. BRI iii. Support for Small and Medium Enterprises (SMEs) iv. Green development goals 2. INDIA i. Atmanirbhar Bharat Abhiyan - A self-reliant India initiative aimed at promoting domestic manufacturing and reducing reliance on imports ii. Reforms and subsidies iii. Digital Transformation iv. Health Sector Strengthening 3. JAPAN i. Abenomics ii. Industrial Policy iii. Social Welfare Expansion iv. Environmental goals 4. SOUTH KOREA i. Digital and Green New Deal ii. Support for Businesses iii. Diversification strategy iv. Regional Cooperation 5. ASEAN REGION i. Regional Economic Integration 1. ASEAN Economic Community (AEC) - Strengthening economic integration to facilitate trade and investment across the region 2. Regional Comprehensive Economic Partnership (RCEP) - implementation of the RCEP to enhance trade relations with major global economies 6. BANGLADESH i. Stimulus packages ii. Garment industry support iii. Digital Economy 7. VIETNAM i. Economic Reforms 1. Doi Moi policy ii. Export Growth iii. Digitalization 8. PHILIPPINES  i. Build, build, build program ii. Stimulus measures iii. Revitalizing tourism 9. PAKISTAN i. Fiscal reforms ii. Agricultural support 10. SRI LANKA i. Debt Restructuring ii. Support for Tourism and Agriculture NOTE: POST PANDEMIC -> PENT-UP DEMAND TRADE DEFICIT AND BUDGET DEFICIT RICE TARIFFICATION LAW 2019 EXPORT-ORIENTED GROWTH / EXPORT-LED GROWTH – China, Japan, South Korea, and Taiwan Why the Philippines has so much Foreign Reserves? o Business Process Outsourcing (BPO) o Remittances o Prudent Monetary Policies THE REASON WHY LOTS OF WORLD LEADERS WANTS THE PHILIPPINES o Geopolitical Advantage o Resource Richness o People Power o Economic Potential Topic 5: Role of Institutions in Development o New Institutional Economics (NIE) – is a theoretical framework that examines how institutions influence economic behavior and outcomes. o Rule of Law and Property Rights – are fundamental components of a well-functioning society and economy ▪ Rule of Law - ensures that laws are clear, just, and applied consistently. ▪ Property Rights – provide individuals and businesses with the assurance that their assets won’t be arbitrarily confiscated. o Corruption and Governance ▪ Corruption – involves the misuse of public power or resources for personal gain ▪ Good Governance – encompasses transparent and accountable decision-making, effective institutions, and the rule of law.  Topic 6: International Trade and Development o Comparative Advantage and Trade ▪ Comparative Advantage – specialize producing goods and services they can produce at a lower opportunity cost relative to other goods. o Terms of Trade ▪ Export Prices ↑ > Import Prices = more imports for a given quantity of exports ▪ Import Prices ↑ > Export Prices = ability to purchase imports may decline o Dependency Theory and Trade Relationships ▪ Core-Periphery Model – the global economic system perpetuates a core-periphery structure, where developed countries exploit and dominate developing countries through trade and economic relationships ▪ Import Substitution – reduce dependence on the core by adopting import substitution strategies. Topic 7: Industrialization and Urbanization o Urbanization Trends and Challenges ▪ Urbanization – refers to the process of increasing the proportion of a population living in urban areas. o Industrial Policies and Development ▪ Import Substitution Industrialization (ISI) ▪ Export-Led Growth (ELG) ▪ Technology and Innovation ▪ Infrastructure Development ▪ Skills Development Topic 8: Sustainable Development o Environmental Sustainability – refers to the responsible use of natural resources to meet present needs without compromising the ability of future generations to meet their own needs. ▪ Resource Management ▪ Biodiversity Conservation o Millenium Development Goals (MDGs) - focused on issues such as poverty reduction, education, gender equality, child mortality, maternal health, and combatting diseases like HIV/AIDS. o Sustainable Development Goals (SDGs) - consists of 17 goals and 169 targets aimed at ending poverty, protecting the planet, and promoting prosperity and well-being for all. o Green Growth – refers to economic growth that is environmetally sustainable and resource- efficient ASEAN member states 1. Brunei 2. Cambodia 3. Indonesia 4. Laos 5. Malaysia 6. Myanmar 7. Philippines 8. Singapore 9. Thailand 10. Vietnam