Question

Much has been made of the Four Tigers and correlated economies that have grown exponentially in the last 50 years.

In light of these accolades, and based on the text lecture, do you believe that there is an Asian model of growth? If so, could that model be applied to Latin American nations? If there is not an Asian model of growth, why have so many nations in that region experienced fantastic growth while many nations in Latin America grow slowly, if at all? Please explain.

Answer 1

The four tigers of the Asia region are the countries, named as Hong Kong, Singapore, Taiwan and South Korea. These nations are among the first few nations in Asia, who achieved fastest growth rate and got industrialized. These nations have a common characteristics that make a business model of growth. These characteristics are stable political system, maximization in resource utilization and liberal policies for business establishment, expansion and trade. It happens because government of these nations have concentrated effort towards the growth and development to make the nation grow. Further, these nations have populations that has higher skill sets and intellectual pool, facilitating the growth.

The model of economic growth can be applied in Latin american nations, but it is very difficult to do so. The first reason for the difficulty is the political instability. When it happens then government focuses to secure their power, rather focus upon the growth. The second reason is the strong conflict between growth and social equality. The Latin nations has poverty as a big issues and leaders make a promise to make equality of income and it becomes a hindrance for economic growth. Further, the drug war also negatively affects the economies of these Latin nations. These are the reasons that the growth model of 4 tigers of Asia, is very difficult to replicate in these Latin nations.