Transcript Newly Industrialising Countries (NICs)

Taiwan
South Korea
Hong Kong
Singapore
The 4 Asian tigers….
Newly Industrialising Countries
(NICs)
Key Questions
Newly industrialising countries are……
Examples of NICs include…….
Singapore has changed as a result of its
recent industrialisation. Changes
include……
There are 3 main characteristics of NICs - but what are
they ?
You have copies of a series of text extracts from website
sources.
Who provides the ‘best’ definition ?
• What are the similarities between the definitions ?
• Can we identify 3 main characteristics ?
BBC BITESIZE
In the 20th century many countries in east and south east Asia
industrialised - including South Korea, Taiwan, Singapore, Japan,
Philippines and Thailand. These nations are called newly industrialised
countries or NICs. They are also sometimes referred to as tiger economies
because of their rapid growth rate.
The governments of these NICs kept close control over industrial
development, and encouraged industries to export manufactured products
to the more developed and richer countries abroad.
The profits generated by exports were re-invested in the domestic
economy. Domestic businesses grew, wages rose, and workers spent their
new wealth on home-produced goods and services - thus stimulating
further growth. This kind of cycle or knock-on effect, in which money paid
out by businesses is re-invested in the economy, is sometimes called the
multiplier effect.
The success of NIC economies has contributed to the decline, over the last
30 years, of manufacturing industries in MEDCs such as the UK. Industries
struggled to compete with the cheaper competition from NICs, where
production costs and wages were less.
TUTOR2U.NET
Newly Industrialised Countries (NIC's) are LDC's that have undergone
recent, rapid industrialisation and experience rising incomes, high
growth rates and international involvement. e.g. Asian tigers Taiwan,
Singapore, Hong Kong, and South Korea, achieved high rates of
growth in the late 20th century.
Typically NIC's have made progress because of appropriate
government intervention to make markets work better through
investment in human capital and by adopting an export orientation.
It is useful to classify countries by groupings for identification of
common problems and policy purposes. The danger lies in
stereotyping and making generalisations that are an oversimplification of complex reality.
GEOGRAPHY.LEARNONTHEINTERNET.COM
NICs (Newly industrialised countries) tend to have a large proportion
of people working in secondary industries. The % of the population
working in primary industry starts to decline. This is because people
move from jobs in rural areas to urban areas to work in factories as
the industrial base develops.
S-COOL.CO.UK
Newly industrialised countries are those that have recently had substantial
growth in their manufacturing output and consequently exports. They include
South Korea, Singapore, Taiwan and Hong Kong.
Many have followed a similar system. Firstly the country invests in industries
that can produce goods they would normally import and supports these new
industries by putting extra taxes on imported goods to make them uncompetitive.
Then when these industries are established they look to replicate many of the
products in the world export market. They concentrate on high technology
industries, first mimicking existing products then improving them. Their
economy typically grows by about 6-8% a year.
“Living Graph”
3 Stages….
1
This stage has
traditional, labour
intensive industries,
using low levels of
technology and local
raw materials such as
textiles.
2
The country develops Import
Substitution Industries (ISIs)
at home to replace expensive
imports, which are subjected
to high levels of tax.
3 The country moves into Export
Orientated Industries (EOIs)
which are high-technology and
require a lot of capital
investment. They require a lot of
Research and Development
(R&D), but generate rapid growth
in the economy.
Where on the graph ?
Yu Hui stares through the window
of the TV shop and wishes she
could afford one of her own.
200 new jobs are announced at
the local microwave factory,
which opened 10 years ago.
Mr. Yamuichi gets a new job
making cars for Daihatsu
Kim has had to retrain from her
job as a seamstress to working
on a circuit board checking team.
Jo has only 2 days off a month
from his managerial job.
Changes in Singapore
• 1°N, 103°E
• Located at the southern-most tip
of South-east Asia.
• A deep water harbour in a
strategic trade position linking
routes from Europe to Australia
and the west coast of the
Americas
• Hard work ethic of the people
• Leadership – Singapore is the
work of one man and his political
ideology. Lee Kuan Yew.
All quotes and images that follow
by Lesley Allen – Tanglin Trust
Secondary School, Singapore
“At the moment there is a feeling of wealth and payback time
here. The budget has just given cash paybacks to the people
of Singapore, with the less well-off getting more. Lee Kuan
Yew has just got back from China and there is a real drive to
make more trade links with the Chinese.”
“The drive to economic take off has happened but they
don't want to tail off (and let complacency set in) – “world
class” is a term that is often applied to developments and
reasons for growth. Some of the stricter laws seem to be
being amended, some of them seemed silly to us in the
first place but helped to control/ clean the place up and
now the rewards are there for all.”
“Any old Chinese buildings are now in the process of
preservation or gentrification - Even trees are now becoming
heritage trees. It’s a strange thought: conservation as a sign of
economic wellbeing and development…”
“There is fierce competition with
Malaysia as they offer cheaper
rates at ports and industrial areas
so Singapore is trying to widen its
global market as it can't really
under cut the prices of Malaysia.
Dyson vacuum cleaners are now
made in Malaysia and even Royal
Doulton have re located to
Indonesia - lots of china clay
there.”