Transcript Chapter 11 Section 5

East Asia’s Economic & Social Development
CHAPTER 11 SECTION 5
JAPAN…
Set the pace for the world economy from 19601990 but in the early 1990’s Japan experienced a
deep recession & its growth has slowed. It is still
one of the world’s top 3 economic powers (with US
& China);
 The “Economic Miracle” refers to Japan’s
comeback following almost total destruction in
WWII; the economy is based on exports (at first
simple, inexpensive items; later more
sophisticated products like cars & electronics). By
the 1980’s it led the global high-tech economy.

JAPANESE CAPITALISM
Japanese capitalism is characterized by far greater
government control than we have in the US. The
Ministry of Int’l. Trade & Industry (MITI) controls
most business activity.
 In the US, giant corporations may be illegal
(monopolies), but in Japan they are encouraged
resulting in less investor control.
 Most Japanese employees work for 1 company for
their lifetime; there is very strong loyalty between
company & employee & vice versa.

JAPAN SINCE THE RECESSION
The Japanese still live with high inflation &
most goods/services are quite expensive,
however, they still have one of the highest GDP
per capita rates in the world.
 Unemployment & extreme poverty remain lower
than in the US, but they have disparities
between social classes like we do.

SOUTH KOREA
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
When the Japanese occupied SK during WW!! Their
industrial development was concentrated in the north
(resource rich) so SK had a very underdeveloped
economy; many years of war on the peninsula did not
help econ. Dev.;
In 1960 SK’s gov. started a program of export-led
economic growth & with heavy gov. involvement they
achieved impressive growth. The US has always been a
major trading partner of SK. Their heavy investment in
education helped them become a major player in the
global high-tech economy.
TAIWAN…

Like SK & Japan, Taiwan’s gov. has a lot of
control over its economy but a major
distinguishing feature of Taiwan is the absence
of large conglomerates & reliance instead on
mid-size family run corporations. They believe
this protected them from the “Asian Crisis” of
the 1990’s, kicked off by Japan’s severe
recession.
HONG KONG…
China lost control of Hong Kong to the British after
losing the Opium Wars in the mid 1800’s.
 Under British control the gov. took a very “laissez
faire” (hands off) approach to the economy, which
is different from other countries in the region.
 When China regained control in 1997 they made
Hong Kong into a SAR (special administrative
region) & have not introduced many changes to its
economic management, keeping it one of the
world’s leading economies.

CHINA’S ECONOMIC GROWTH
Deng Xiaoping introduced the profit incentive
into Chinese society & this jump started the
decades of growth that have moved China into
the #2 spot in overall GDP (#1=US; #3=Japan);
 The East Coast has seen the most economic
growth & development & the further west you
move the less developed China becomes;
 Here’s how the World Bank explains it:
 China's economy

PROBLEMS FOR CHINA…
Ghost cities 60Minutes Clip
 http://articles.chicagotribune.com/2013-0603/business/sns-rt-us-china-economy-pmihsbcbre95201h-20130602_1_growth-fearsfactory-activity-economic-growth
 Uneven economic development
 Slowed growth rate
 Housing market in trouble
