Asian economy

Asian economy Between 1960 and 1990 the South-East Asian countries grew faster than any other region of the world. The economies of Hong Kong, Indonesia, the Republic of Korea, Malaysia, Singapore, Thailand and Taiwan showed miraculous growth in income and came to be called Tiger economies.

Most of this growth has been due to superior accumulation of physical and human capital. Government policy of maintaining macro-economic stability (low rates of inflation and equilibrium in fiscal and external accounts) coupled with strategic intervention in the form of investment in human capital formation, focus on economic openness, trade policies, regulated credit and aggressive export promotion provided the basis for their high growth rates. In most of these economies the impact was seen through high levels of savings, good budgetary management, efficient taxation policies and restrictive current expenditures.  Asian economy is playing vital rule in Asia.

The political leadership clearly realised the need for initiating the development process by translating the new vision into concrete policies and programmes, and utilised the bureaucracy in designing and implementing appropriate economic measures by giving weightage to merit independence of political interventions. Such independence however was linked with accountability and transparency in action and policies. The enhanced industrial activities were also supplemented by attracting foreign investment through consistent policies, political stability, good law and order situation and provision of socio-political infrastructure.

Every effort was made to utilize the expertise of nationals living abroad who were in fact involved in policy consultancy and technological updatation. Notwithstanding the different political systems, three variables run across the Tigers’ development process : broad-based policy consensus, sustained policy continuance and commitment to the same, coupled with competence. So Asian economy is important.

The experience of Tiger economies can help policy makers and bureaucrats in Bangladesh to understand the range of policies that contribute to rapid economic growth. Their astute macro-economic management, with minimum inflationary impact, took good care of distributional aspect of economic development, and was people friendly. Growth strategies based on labour intensive technology promoted employment.

The emphasis on rural development through investment in rural infrastructure and agricultural growth provided income and employment opportunities for the rural poor. These are the definite areas with lessons for countries like Bangladesh. So Asian economy is most important.

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