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    Government Policies and Reforms (Financial, Industrial, Corporate) - Asia & Asian Tigers

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    The four Asian Tigers - Hong Kong, Singapore, South Korea and Taiwan - experienced spectacular economic growth from the 1960s due to policies promoting trade, innovation, education, and flexible adaptation. While their development models differed somewhat, all four emphasized outward trade orientation, human capital investment, and evolving supportive institutions. Their governments also played important roles through targeted financing programs and policies to attract foreign investment, upgrade technology, stimulate private sector competitiveness, and address economic and social challenges through the financial crisis of 2007 and beyond.

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    Government Policies and Reforms (Financial, Industrial, Corporate) - Asia & Asian Tigers

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    Alex
    48 views2 pages
    The four Asian Tigers - Hong Kong, Singapore, South Korea and Taiwan - experienced spectacular economic growth from the 1960s due to policies promoting trade, innovation, education, and flexible adaptation. While their development models differed somewhat, all four emphasized outward trade orientation, human capital investment, and evolving supportive institutions. Their governments also played important roles through targeted financing programs and policies to attract foreign investment, upgrade technology, stimulate private sector competitiveness, and address economic and social challenges through the financial crisis of 2007 and beyond.

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    Government policies and reforms (financial, industrial, corporate)

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    Asian Tigers

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    The four Asian Tigers - Hong Kong, Singapore, South Korea and Taiwan - experienced spectacular economic growth from the 1960s due to policies promoting trade, innovation, education, and flexible adaptation. While their development models differed somewhat, all four emphasized outward trade orientation, human capital investment, and evolving supportive institutions. Their governments also played important roles through targeted financing programs and policies to attract foreign investment, upgrade technology, stimulate private sector competitiveness, and address economic and social challenges through the financial crisis of 2007 and beyond.

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    © All Rights Reserved
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    48 views2 pages

    Government Policies and Reforms (Financial, Industrial, Corporate) - Asia & Asian Tigers

    Uploaded by

    Alex
    The four Asian Tigers - Hong Kong, Singapore, South Korea and Taiwan - experienced spectacular economic growth from the 1960s due to policies promoting trade, innovation, education, and flexible adaptation. While their development models differed somewhat, all four emphasized outward trade orientation, human capital investment, and evolving supportive institutions. Their governments also played important roles through targeted financing programs and policies to attract foreign investment, upgrade technology, stimulate private sector competitiveness, and address economic and social challenges through the financial crisis of 2007 and beyond.

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    Government policies and reforms (financial, industrial, corporate)- Asia & Asian Tigers

    The four Asian Tigers, also known as the Four Dragons – Hong Kong, Singapore, South
    Korea and Taiwan have developed spectacularly from 1960s towards present times. The four
    have been described as “Asia’s poster child” due to the accelerated growth in finance,
    innovation and technology. Studies point out that knowledge and innovation together with
    regional integration trough trade and policy coherence are the major drivers of Asia’s
    economic expansion. The four Asian tiger economies share similar characteristics such as
    outward orientation, high human capital, evolving institutions and most importantly, flexible
    policies.

    However, the nature of regional networking for each of the four economies was different.
    South Korea was developed in terms of industrialization and had already independent brands
    and large companies, known as chaebols, while the other Asian Tigers – Singapore, Hong
    Kong and Taiwan were focused mainly on subcontracting and international procurement for
    foreign transnational companies (Arora and Ratnasiri, 2015). Furthermore, especially for the
    case of Taiwan and Singapore, financial and investment policies played an important part in
    their economic development. When it comes to the national strategy for economic growth, the
    government played an important role in guiding the scientific and technological progress. For
    instance, according to Wonglimpiyarat, J. (2013) the Singaporean government implemented
    various innovation financing policies in order to encourage investments towards the
    development of innovative capabilities. In this sense, the Economic Development Board is the
    governmental agency responsible for attracting foreign investments to Singapore and for
    positioning Singapore as a global business center. Consequently, Taiwanese government also
    focused on upgrading technology in the country and managed to implement successfully
    extensive financing programs. The Ministry of Economic Affairs in Taiwan has established
    numerous research institutes, programs and venture funds in order to provide equity and to
    stimulate the competitiveness of SMEs, thus managing to support industrial innovation
    (Wonglimpiyarat, 2013).

    On the other hand, in South Korea chaebol has been the known form of business
    conglomerate and due to its unique corporate governance it has created a great extent of
    controversy. Its structure is based on centralized ownership, which enabled companies to
    adopt efficient decisions when faced with economic hardship. Despite its good functioning,
    the Korean chaebol lacks external monitoring and raises issues regarding its corporate
    governance and the allocation of resources in terms of production (Park and Yuhn, 2012). In
    addition, in order to address several issues, especially those related with unemployment and
    disadvantaged individuals, the South Korean government introduced considerable policies
    (the most known one being the Social Enterprise Promotion Act), thus managing to create a
    “more formalized civic society” (Bertotti et al, 2014).

    According to studies, the four Asian economies have faced serious challenged during the
    global financial crisis in 2007. In this sense, the intervention of Asian governments was
    prompt and helped to lead to a revival of Asian economies. In Hong Kong, for instance, free
    trade agreements and tax breaks were used in order to increase banks profitability, thus
    transforming Hong Kong into a regional financial center. In South Korea, several reforms
    have been initiated by the government in order to address issues such as corporate governance
    and labor market among others. In addition, the Monetary Stabilization Bond was a unique
    policy tool created by the South Korean government to “control excess liquidity and manage
    export driven economic growth” (Cherng et al, 2013).

    Industrial development together with technology dissemination have gained momentum due
    to the inflow of foreign direct investment, thus making Southeast Asian economies attain
    great success in terms of industrialization growth. Among the four Asian Dragons, South
    Korea stands out because of the government’s involvement in creating programs that “provide
    databases and services”. Important policies that refer to trade, industry, energy and other
    resources are under the control of Ministry of Commerce, Industry and Energy (MOCIE).
    Also, the Industrial Information Network (IIN) has managed to become an influential
    organization and with the help of government funds has succeeded in increasing industrial
    productivity and competitiveness of companies (Choi, 2007).

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