Chapter 13.5, Problem 1RQ

To determine

The reason why some Southeast Asian countries have experienced continued economic growth and social development, while others have experienced stagnation in the same period.

Answer to Problem 1RQ

The governments of the Southeast Asian countries such as Singapore, Thailand, and Malaysia have been progressing and developing, especially in running the economies. They have adopted specific investment strategies and supported them well. On the otherhand, the countries such as Burma, Philippines, and Cambodia had a government that has been afflicted by a group of dictators, by military regimes, and by corruption. Some groups, especially Burma, Cambodia, Laos, and East Timor, also, have been badly affected by decades of ruthless armed fight.

Explanation of Solution

South Asian countries have been experiencing fluctuations in its economic and social growth, when certain countries progressed rapidly, others remained inactive. The governments of Singapore, Thailand, and Malaysia have witnessed good progress in its economy and so social development as well.

Singapore changed itself from a transshipment port city to one of the richest and modern states in the world. It could be designated as the financial and communication center and also the sophisticated industrial center of the region. The role played by the government was very active here and they promoted investment. The government has also provided finance for the purpose of, education, housing, and social services, however, it is only partially democratic. The country could advance both economically and socially.

Malaysia has also experienced a fast growth in economy. The high-tech sectors with intense labor-demand, particularly exhibited an advancement. However, the economic improvement was uneven throughout the country. The greatest development was taking place in the western region of peninsula, while the traditional population of Malaysia continued to be less wealthy. Moreover, those belongings to the South Asian lineage are also showing much progress. Taking this into account, the government has took effort in developing “affirmative action” strategies and programs that could help the Bumiputra (which means the “sons of the soil”) who were the native Malay people.

Thailand exemplifies many economic instabilities of the region. Most of the developments and thereby the economic growth has been taking place in the historical center around Bangkok. The Lao-speaking northeast and Malay-speaking distant south continued to remain as the poorest regions of the country.

During $1950\text{s}$, the most highly developed country in Southeast Asia was Philippines. The development was disrupted from the $1960\text{s}$. The living standards were deteriorating critically over the $1980\text{s}$. Though the population was educated well and rationally healthy according to world standards, the autocracies, political uncertainty, and corruption along with the crony capitalism have obstructed the economic development and growth. The export of labor has been considered as a strong foundation of the economy, which provided the required revenues. The country has also turned into a center for contracting out business operations.

In recent years, Vietnam has given up its communist strategies and has welcomed multinational organizations. The Southern Vietnam continues to be more commercial than the Northern Vietnam. The government remains to exert a heavy effort and control. Over the later twentieth century, Cambodia encountered poverty, war, and genocide. Its economy was principally dependent on agriculture for livelihood. The recent economic growth is caused due to the exploitation of oil, mineral resources, and tourism. The extensive international investment has also aided, however, problems have taken place with poor people being evacuated to give area for new developments. The country was witnessing extensive criminal activities also.

Although Burma is the least economically developed country, it has abundant potential with plentiful natural resources, fertile agricultural lands, and a rationally well-educated population. Nevertheless, ever since $1948$, the economy has been mostly secluded and standing. Recently, proposals have arisen for an open economy recently, with better trading with China, India, and other neighbors. Some specialists believe that if the government adopts more open and globally involved strategies, the country would be self-confident for extensive economic development.

If Laos is considered, many of its people perform subsistence agriculture and the region suffers from comparative remoteness, rough landscape, and poor infrastructure. The government of Laos is aiming at mining, hydropower, tourism, and investment from Vietnam, Thailand, and China to support their economy. Of the South Asian countries, the weakest and poorest country is the East Timor. Since it has been independent lately, the expectation of its social and economic growth is vested in the incomes from offshore oil and natural gas deposits.