East Asian Development : Asia

Besides the experience of travel itself, identify one theme or pattern that seems to be repeated throughout the test. Examples (political\ systems, economic development, religion). What significance does this theme or pattern play in shaping the ancient world? Are there any chapters/people/events that contradict your pattern or theme?’

After the end of the World War II the world faced the challenges of economic and social recovery. The majority of developing countries based their economies on Import Substitution Industrialization (ISI), the state-oriented approach to a trade and economic policy. ISI supports the replacement of import with domestic production in order to reduce foreign dependency. This protectionist policy dominated in developing countries, especially in Latin America and sub-Saharan Africa, during the first 30 years after the World War II. By 1980s, when the main gains of ISI were exhausted and it demonstrated its inefficiency, the countries of East Asia adopted a new development strategy. Consequently, this new export-oriented and market-friendly strategy, so-called East Asian model, has determined the successful economic and trade policy of East Asian countries during the next several decades. To understand the reasons of the shift from ISI to the East Asian model, it is needed to carefully examine and contrast these two approaches and their supporting theories.

There were many changes and continuities in East Asia, in the relationship of religion and politics from 1450-1750. One main change is the “kaozheng”, or research based on evidence; which led to much critisism of the Neo- Confucian orthodoxy. A main continuity was the system of Neo- Confuciasm, which continued during the Ming and Qing dynasties in China.

In this essay we look in-depth on how government strategies and economic policy play a crucial role in the success of High Performance Asian Economies (HPAEs) during 1960 to 1990 (World Bank 1993).There are eight countries within HPAEs: South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia and Japan. Its economic development has significantly rise that it was name ‘East Asia Miracle’ (World Bank, 1993).

How did East Asia become so successful? The countries all had a rough start at the beginning, but who didn’t? In the late 1990’s Eastern Asia were struggling to make ends meet. Most countries in Eastern Asia begin making money by agriculture. East Asia propelled into the world with more and labor and growth and put themselves on the map.

Trade policy in developing countries obtained major influence from the changing views in economic development, namely, inward looking and outward looking (Moon, 1998). For about 3 decades after World War II (WWII), the trade policy of developing countries relies on inward-looking development. This type of development is implemented through autarky trade policies to protect country’s local manufacture industry. There are so many critics delivered during the inward looking development implementation. Then, around eighties, most of developing countries started to change its trade policies in to more outward-looking policy. Those two policies conflicts each other’s. One emphasizes the importance of the principle of comparative advantage, campaigning free market and export oriented policies, while the other highlights to foster domestic market through Import Substitution Industrialisation (ISI).

Since the 1960s, Asia has become richer quicker than any other region across the world. China and the High Performing Asian Economies (HPAE) have been the fastest growing economies ever, demonstrating phenomenal economic growth in the years between 1965 and 1990. Compared to large parts of Asia Sub-Saharan Africa and Latin America, the HPAE’s have been highly successful at achieving high growth rates. Most of this success can be attributed to the staggering growth in Japan, the four tigers including Hong Kong, the Republic of Korea, Singapore and Taiwan as well as the NIE’s of Southeast Asia, Indonesia, Malaysia and Thailand. Controversial issues have been raised in relation to the affiliation between the government, the private sector and the market. As a consequence of the coexistence of public policies and rapid growth in some of the HPAEs particularly Japan, Korea, Taiwan and Singapore. Moreover government intervention within these economies has been a necessity to promote development.

The so-called East Asian Development Model was devised as a reaction to sustainably high growth rates in many East Asian countries in the post-World War II period and particularly in the last 40 to 50 years. Generally, there are two competing models of economic developments for developing countries: On the one hand import-substitution industrialisation (ISI) and on the other hand export-led industrialisation (ELI). Many Latin American and African countries favoured the former after the Second World War and erected trade barriers, introduced tariffs and tried to promote local industries. In the first couple of decade particularly South Asian (India) and Southeast Asian countries (Indonesia, Malaysia, Vietnam) also applied this model to a certain extent.

The definition of the phrase ‘Settlement pattern’ is associated with the understanding of how a particular society used the available resources in its region. The phrase can also be described as the actual land upon which a settlement is built. So what exactly is the pattern of settlements in Southeast Asia?

“The (Asian and Pacific) region remains host to over half of the world’s slum population...At the same time, the percentage of urban population living in slums (these are households with no durable housing, insufficient living area, no access to water nor sanitation) has skyrocketed since 1990 and reached 30.6 per cent in 2010 (about 500 million people). Poverty is now growing faster in urban than in rural areas.”

The most representative regional economic organization in East Asia is ASEAN, which was established in Bangkok and formed by five founding members, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei, Laos, Myanmar, Vietnam and Cambodia also joined successively to form the ten countries of ASEAN. ASEAN is abbreviated by Association of Southeast Asian Nations, which was built to contain the Communist forces with the purpose to steady military affairs and political neutrality initially. According to Tong (2005), the content of East Asian economic integration can be classified as Free Trade Agreement (FTA) and Comprehensive Economic Partnership (CEP). Previously, East Asian economic integration focuses on the operation of FTA which applies the zero tariffs on member countries; nowadays, economic cooperation agreement is inclined to CEP which contains wider issues of economic cooperation such as tariff reduction, deregulation of investment policy, enlargement of factors of production and etc. to draw the relation between member nations and achieve a higher level of integration (Jin, 2003). Moreover, the continuing goal of ASEAN is to promote the inter-regional economic development, enhance the partnership and maintain the peace in the region (Taiwan ASEAN Studies Center, 2014). Before Asian financial crisis, ASEAN is a representative of the regional economic organization that especially focuses on

In this paper, I shall provide you with important and detailed information, entailing who ASEAN-India is, how ASEAN-India was founded, why there was a need for ASEAN-India, and what type of business conducted, along with its contributing countries. This paper will further discuss each agreement that was signed into effect, to include The Framework Agreement on Comprehensive Economic Cooperation, The Trade in Goods Agreement, Trade in Services Agreement, and the Investment Agreement. Each agreement is centered on ASEAN-India Free Trade Area. Once reading this paper, one will gain a comprehensive understanding as to how ASEAN-India came to be and what each above-mentioned category represents.

Asia, and especially East Asia, is a region that has experienced significant economic growth in a relatively short period of time; yet it is a region without a strong regional institution. There are several regional organizations in Asia starting with the Association of Southeast Asian Nations (ASEAN) established in 1967 (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam), ASEAN plus three (China, Japan, South Korea) in 1997, ASEAN Regional Forum, East Asia Summit, Asia-Pacific Economic Cooperation (APEC), etc. Despite the numerous regional institutions within Asia, there has not been a cohesive structure that is prominent like that of the European Union in Europe.

Association of Southeast Asian Nation (ASEAN), a 10-member organization established in August 1967, moves toward a deeper integration through creating a unified community in political, economic, and socio-cultural aspects of the region. It is a region of great diversity but most countries have achieved rapid economic development for the most of the past 25 years. Its diplomacy and cooperation are characterized by caution, pragmatism, and consensus-based decision making – the “ASEAN Way” (Ponciano Intal, et al., 2014). Taking steps to achieve their goal and embracing its motto, “One Vision. One Identity. One Community.” the organization established the ASEAN Economic Cooperation (AEC) in 2015. This aims to promote an all-inclusive cooperation across the region, gearing towards making South East Asia a globally competitive single market and production base characterized by: free flow of goods, services, investments, skills, and capitals. Moreover, it intends to form a region of equitable economic development integrated into the global economy (The ASEAN Secretariat, 200)

The Association of Southeast Asian Nations (ASEAN) was formed by Indonesia, Malaysia, Philippines, Singapore, and Thailand in 1967. Today, it consists of 10- member states with the addition Brunei, Cambodia, Laos, Myanmar and Vietnam. The region now moves forward for deeper integration of creating one community in terms of political- security, economic and socio-cultural aspects. As ASEAN continually evolves, it still upholds its defining principle, the “ASEAN Way”.