Economic Development of Southeast Asia.ppt

Read Malcom Dowling: “Asia’s economic miracle” NIEs: Singapore, HK, Taiwan, Korea SE Asia: Indonesia, Thailand, Malaysia What are the 4 “critical” elements of E/SE Asian growth? Ask yourself: is anything different since 1997? Is what was true in 1997 still true today? * * * * * Need a map! * * The region was globalized before most people even believed in globes! Specialization: SE Asia imported Chinese ceramics and silks, Indian weaving, Western military and transport technologies. -- In exchange for spices, cotton textiles, specialty timber and foodstuffs. Tribute: Deference to China exhibited through tribute payments to the Chinese emperors. Now: inclusion of China in “ASEAN plus 3”. * * * Redirection of trade: Booth (1991) summarizes. For actual data, see Myrdal, Asian Drama, table 13-4. * * Source: Booth (1991: 31). * * Damage from WWII: different countries recovered at different rates (Booth 1991: 23) Economic nationalism: especially pronounced in Burma and Indonesia. Thailand, Philippines and Malaysia followed more open policies. * * Initial trade as % GDP was very small in immediate post-colonial era Burmese road to socialism vs. gradual opening to trade: correlations with growth? How can trade exceed 100% GDP? * Imports and exports are roughly equal in the long run Reduced export orientation also means diminished capacity to import (Burma, again) Cambodia’s transformation * Initial share of mfg in exports (for countries where data are available) is very low. What accounts for the remainder? == NR exports (food, other ag., timber, fuel, … ) By 1990s all ASEAN economies had mfg exports 50% total exports Rate of increase of M share uneven: -- Early ‘takeoff’ in Singapore: 1960s -- Malaysia’s rapid industrialization in 1970s-80s -- Indonesia’s late run in the 1980s (we’ll return to this) -- And the Philippines’ even later run in 1990s Any common causes? NR wealth? Policy? Growth? * * Economic Development of Southeast Asia Ian C