Asian_Tigers_Flashcards

Question 1

What are the ‘Asian Tigers’?

Answer 1

four economies—South Korea, Taiwan, Hong Kong, and Singapore
- that achieved rapid industrialization and economic growth from the mid-20th century.

Question 2

Why are the Asian Tigers considered examples of inclusive institutions?

Answer 2

• such as land reforms, investment in human capital
• fostering economic freedom, which allowed broad segments of the population to participate in and benefit from economic activities.

Question 3

How did colonial history influence the Tigers’ development?

Answer 3

• Hong Kong and Singapore developed trade-oriented policies as British colonies
• Taiwan and South Korea adopted practices influenced by Japanese colonization and U.S. post-war reforms.

Question 4

What role did economic freedom play in the Tigers’ success?

Answer 4

-Economic freedom, characterized by low taxes, high savings rates, and liberal trade policies, was critical for the Tigers.
- It facilitated investment, innovation, and efficient allocation of resources.

Question 5

What challenges did the Tigers face in their early development?

Answer 5

In the mid-1950s, the Tigers were densely populated, resource-poor, and under geopolitical threats, such as potential communist invasion. Despite this, they adopted outward-looking economic policies.

Question 6

How does the Tigers’ story relate to ‘Why Nations Fail’?

Answer 6

• Their success underscores the importance of inclusive institutions and policies over extractive systems.
• The Tigers show how good policies and economic freedom can overcome geographical and resource limitations.

Question 7

What distinguishes the Tigers from other developing nations of their era?

Answer 7

Unlike many countries pursuing ISI and state-led models, the Tigers relied on trade, innovation, and private sector-led growth, with support from land reforms and U.S. influence.

Question 8

Are the lessons of the Tigers still relevant today?

Answer 8

Yes, but with evolving global dynamics like premature deindustrialization, modern economies must emphasize human capital, education, and adaptability while maintaining economic freedom.

Question 9

How can the Asian Tigers be categorized into two types?

Answer 9

1. City-States (Hong Kong, Singapore): Trade-driven economies with high economic freedom.
2. Japanese-Style Tigers (South Korea, Taiwan): Benefited from land reforms and export-oriented industrial policies influenced by Japan.

Question 10

Premature Deindustrialization and Why Nations Fail – Bullet Points

Answer 10

• contrast to Asian tigers
• Premature deindustrialization happens when manufacturing declines at a low level of economic development, limiting growth potential.
• Weak or extractive institutions hinder industrial growth, failing to support innovation or adapt to globalsation.
• Brazil 1980s