Tiger Cub Economies
Encyclopedia
The term Tiger Cub Economies refers to the economies of the four dominant countries in the Southeast Asia
after Singapore.
The Tiger Cub Economies are: Indonesia
Malaysia
Philippines
Thailand
These economies follow the four Asian Tigers (Singapore
, South Korea
, Republic of China (Taiwan)
and Hong Kong
).
s are called cubs. The term Tiger 'Cub' Economies came after the Four Asian Tigers: Singapore
, South Korea
, Taiwan
and Hong Kong
. The Tiger 'Cub' Economies follow the Four Asian Tigers, which pursued an export-driven
model of economic development
.
These countries and territories focused on developing goods for export to highly-industrialized nations. Domestic consumption of foreign products was discouraged through government policies such as high tariff
s.
The East Asian Tigers singled out education
as a means of improving productivity; these nations focused on improving the education system at all levels; heavy emphasis was placed on ensuring that all children attended elementary education and compulsory high school education. Money was also spent on improving the college and university system.
Except for Indonesia, these are newly industrialized countries
. Indonesia and the Philippines are also included in the Next Eleven
list of economies.
The Republic of Indonesia, fourth most populated country, is a Tiger Cub Economy. Indonesia’s economy in the first few decades after its independence was marred by political mismanagement. Yet, the country’s remarkable resilience to endure the deepest natural and political strife has ensured that Indonesia is now one of Southeast Asia’s fastest growing economies. Indonesia is fast becoming one of the world's most important political and economic success stories.
Despite being a market-based economy, the government exercises control over key areas. With around 158-state owned or public sector units, the government regulates the prices of all basic goods such as rice, electricity or fuel. Agriculture led the economy in output until 1991, when it was overtaken by manufacturing. In 2005, agriculture contributed around 13% of the GDP although it employs an estimated 44% of Indonesia’s workers. Once a major importer of rice, several reforms by the government ensured that rice production grew at 5% annually between 1969 and 1984, mainly concentrated in Java. This helped Indonesia achieve a level of self-sufficiency in the key commodity. The country now exports tea, cocoa, spices, coffee, and natural rubber although they constitute less than 10% of Indonesia’s total exports.
Jakarta
, with a population of more than 23 million people is the largest city in Indonesia, the home of the Indonesia Stock Exchange, and also the seat of The Association of Southeast Asian Nations
(ASEAN) secretariat.
From being little more than a manufacturer of handicrafts and textiles, Indonesia’s manufacturing sector progressed phenomenally. During Suharto’s New Order regime, Indonesia grew to be a key producer of steel, aluminum, and cement. Between 1985 and 1995, the country’s GDP grew by around 95%, even as inflation remained well within 10%.
However, the Asian economic crisis struck a deathly blow. Indonesia collapsed dramatically and its currency plummeted. Forced to take massive aid from the International Monetary Fund (IMF), the Indonesian government had to resort to a number of austerity measures aimed at reforming the financial sector. The IMF subsequently withdrew aid in 1998, stating that the government had failed to abide by its terms – the effect was cataclysmic. The GDP plunged 13.2% in 1998, shrinking again in 1999, and almost half of all corporations became insolvent in 1999. Social unrest spread and unemployment peaked. A change of government with Suharto stepping down finally offered Indonesia a ray of hope. The IMF offered aid again and the battered economy began to find its feet once more although growth has been a bit erratic. Industry represented 41.7% of the GDP according to 2006 figures and exports such as wood products, clothing, footwear and textiles accounted for 56% of Indonesia’s total exports in 2004.
The services sector contributes to 46% of Indonesia’s GDP (2006). During the 1990s, services expanded at an annual rate of 8.6%, more than twice as fast as agriculture, and continues to grow. Tourism remains an important source of revenue with around five million tourists visiting Indonesia in 2005, although travel advisories to this earthquake-prone region are frequent.
Indonesia’s major trade partners are Japan
, the European Union
, the U.S, Singapore
, and South Korea
. Trade with the other ASEAN members too is increasing. Currently, the country is the world’s top exporter of liquefied natural gas (LPG). Indonesia, which was a long-time member of OPEC
, recently conveyed its decision to pull out of the organization in 2008. Mining and mineral production represents around 11.9% of GDP with around 0.5% of the country’s labor force engaged in this sector. Life expectancy at birth is estimated at 71.6 years for women and 67.8 for men, or 69.7 years total. With a 12-year public and private education system, around 3.7% of the government’s expenditure is ploughed towards education.
Seismic shifts in its economic history have been mirrored in the country’s banking sector. Chaos reigned supreme during the 1997-98 crisis when many domestic banks collapsed. Relations with the IMF have been tense, and although the government established the Indonesian Bank Restructuring Agency
in 1998 to rebuild the private banking sector, the pace of reform has been slow. Inflation came down from 20.4% in 2000 to 13.6% in 2006. Foreign investment in Indonesia, however, has been on the decline ever since the banking crisis and it remains to be seen if promises of future stability might bring the fillip that this country needs.
Indonesian consumer and market-based economy has contribute to the resilience of Indonesian economy during Financial crisis of 2007–2010. Indonesia has seen the emergence of a confident new middle class as its economy continues to perform well, better than others in the region. Its success is partly because a huge proportion of the goods bought and sold in the nation's shops are also made in Indonesia, keeping jobs and money in the country.
The country already figures among the world's top three exporters of coal
, natural gas
, crude palm oil
and natural rubber
. It is home to the world's largest gold mine and second-largest copper mine. Its 237 million people give Indonesia a larger population than Brazil or Russia. The growth of its workforce over the next two decades will likely prove more promising than for any of the four BRIC countries. Its still relatively low Internet and credit penetration give the country room to grow.
Malaysia is a growing and relatively open
state-oriented market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans. In 2007, the economy of Malaysia was the 29th largest economy in the world by purchasing power parity with gross domestic product for 2007 estimated to be $357.9 billion with a growth rate of 5% to 7% since 2007
Today, Malaysia
is an active participant in Southeast Asia. Well-endowed with natural resources, its rich tropical forests, endless beaches, and cultural diversity attract a wide number of tourists from around the world. It is by far the most visited country in Southeast Asia
, ahead of the politically unstable Thailand at 22.1 millions visitors in 2008. Penang
, Borneo and Kota Kinabalu
remain prime destinations. Geographically, the country lies close to major world trade routes, bringing early exposure to a burgeoning global economy. Malaysian plantations cultivate cocoa, timber, pepper, pineapple and sugar cane, while rice paddies dot the northern reaches.
In the 1970s, Malaysia began to imitate the four Asian Tiger economies (Republic of Korea (South Korea), Republic of China (Taiwan), then British Crown Colony of Hong Kong and the Republic of Singapore) and committed itself to a transition from being reliant on mining and agriculture to an economy that depends more on manufacturing. With Japanese investment, heavy industries flourished and in a matter of years, Malaysian export
s became the country's primary growth engine. Malaysia consistently achieved more than 7% GDP
growth along with low inflation
in the 1980s and the 1990s. Today, Malaysia is one of the world's largest computer hard disk manufacturing sites.
The Southeast Asian nation experienced an economic boom and underwent rapid development during the late 20th century and has a GDP per capita of $14,400, being considered a newly industrialized country. As one of three countries that control the Strait of Malacca
, international trade plays a large role in its economy. At one time, it was the largest producer of tin
, rubber
and palm oil
in the world. Manufacturing has a large influence in the country's economy.
Its indigenous labor workforce has been supplemented by immigrants who continue to contribute to Malaysia’s growth. The economy has always been exceptionally open to external influences such as globalization. Foreign capital has played a major role throughout.
The Malaysian Ringgit
was unpegged from the U.S. dollar in 2005 leading to the currency appreciating by 6% against the dollar in 2006. The country’s GDP is projected to grow at 5.6% in 2008. Short-term foreign debt remains low, although reserves remain adequate. Low inflation persists.
In March 2005, the United Nations Conference on Trade and Development
(UNCTAD) published a paper on the sources and pace of Malaysia's recovery, written by Jomo K.S. of the applied economics department, University of Malaya
, Kuala Lumpur
. The paper concluded that the controls imposed by Malaysia's government neither hurt nor helped recovery. The chief factor was an increase in electronics components exports, which was caused by a large increase in the demand for components in the United States, which was caused, in turn, by a fear of the effects of the arrival of the year 2000 (Y2K
) upon older computers and other digital devices.
However, the post Y2K slump of 2001 did not affect Malaysia as much as other countries. This may have been clearer evidence that there are other causes and effects that can be more properly attributable for recovery. One possibility is that the currency speculators had run out of finance after failing in their attack on the Hong Kong dollar in August 1998 and after the Russian ruble
collapsed. (See George Soros
)
Regardless of cause and effect claims, rejuvenation of the economy also coincided with massive government spending and budget deficits in the years that followed the crisis. Later, Malaysia enjoyed faster economic recovery compared to its neighbours. The country has recovered to the levels of the pre-crisis era – as an example, the Kuala Lumpur Composite Index
hit an all time high of 1,386 on 20 June 2007 which is approximately 100 points higher than the pre-crisis record of 1,275 in 1993.
While the pace of development today is not as rapid, it is seen to be more sustainable. Although the controls and economic housekeeping may or may not have been the principal reasons for recovery, there is no doubt that the banking sector has become more resilient to external shocks. The current account has also settled into a structural surplus, providing a cushion to capital flight. Asset prices are generally back to their pre-crisis heights, despite the effects of the global financial crisis. Malaysia is also the world's largest Islamic banking
and financial centre.
As an oil and gas exporter, Malaysia has profited from higher world energy prices recently. Yet, the slowdown in the U.S. economy is bound to have some ripple effects here too. Historically, Malaysia’s economy has always been dependent on a limited range of products. Unfortunately, if the trend continues, the Malaysian economy will remain heavily dependent on electronic exports ($60.2 billion or 62% of total exports). Slower demand for electronic goods in particular and the possibility of further global financial market turbulence may be of some concern to Malaysia going forward.
According to World Bank
, Malaysia ranks 24th in Ease of doing business. Malaysia's strengths in the rank includes getting credit (rank 3rd), protecting investor (ranked 4th) and doing trade across borders (ranked 21st). Weaknesses include dealing with licenses (ranked 105th). The study ranks 178 countries in all aspect of doing business. In the investor protection category of the survey, Malaysia had scored a perfect 10 for the extent of disclosure, nine for director liability and seven for shareholder suits.
The government is moving towards a more business friendly environment by setting up a special task force to facilitate business called PEMUDAH, which means "simplifier" in Malay. Highlights includes easing restrictions and requirement to hire expatriates, shorten time to do land transfers and increasing the limit of sugar storage (a controlled item in Malaysia) for companies. The efforts of PEMUDAH is beginning to show fruits as their ranking improved to number 20 in 2009, with marked improvement in four areas: getting credit; dealing with construction permits; paying taxes; and enforcing contracts.
According to the vision Wawasan 2020
foresees a strong and confident Malaysia – powerful in the ASEAN region already, but embracing the world stage – the towering Petronas Twin Towers
that loom over Kuala Lumpur
an accurate symbol of this vision.
The Republic of the Philippines is rich in human and natural resources. It was once the second largest economy in Asia next only to Japan. It had strong economic growth, high standard of living, major infrastructure developments and one of the best education systems in Asia during the twenty year rule of President Ferdinand Marcos
. Allegations of corruption and cronyism plagued the Marcos administration. It was in the late 1980s that the Philippines was called the "sick man of Asia" as the economy suddenly collapsed. Capital flight remained after the assassination of opposition leader Benigno Aquino II. Marcos’ removal from office ushered in a new era for the Philippines, although corruption reached new levels during this period resulting to a further decline of the economy. Then, under Fidel V. Ramos
, the government embarked on a development plan called ‘Philippines 2000
’, which enhanced privatization in key industries like banking, electricity, telecommunications, shipping and oil. The Ramos administration's policies transformed the Philippines into Asia's new tiger economy.
Unlike other countries in the region, the Philippines contracted less dramatically during the Asian crisis of 1997, though inflation soared. In 2010, inflation was 3.8%, well below the double-digit inflation levels during the crisis. It should be noted that the Philippines was the first country to bounce back from recession among its neighbours.
Historically, the agricultural sector in the Philippines has underperformed, considering that it employs about 36% of the labor force even while contributing just 13.6% to the Gross Domestic Product (GDP). Bananas, sugar, pineapples and coconuts are some of the most important cash crops, and the Philippines remains one of the world’s leading producers of coconut products. In one of the most stunning cases of environmental degradation, the Philippines has turned from being one of the world’s biggest exporters of tropical hardwoods in the 1970s to being a net importer of forest products by 1990s.
Industry contributes to 33.2% of the GDP, with consumer goods such as processed goods, coal, and garments dominating the manufacturing sector. Metro Manila
and CALABARZON
serve as the country's major industrial centers. Mining was once one of the predominant industries, with the Philippines blessed with minerals like copper, gold, silver, chromium and lead. The closure of several mines and crumbling infrastructure coupled with worries about environmental havoc, have led to the decline of the mining industry. Encouragingly, Gloria Macapagal Arroyo’s government has announced a change in policy from ‘tolerance to promotion of mining.’
The Philippines is the second largest producer of geothermal power
in the world after the U.S., and geothermal power accounts for about 50% of domestic power generation, followed by hydropower, which accounts for about 33%. The domestic power mix is 2/3 from fossil fuels as of 2004.
One of the most competitive aspects of the Philippine economy has been the rapid growth of its services sector since 1980. Contributing to 53.2% of the GDP in 2006, segments such as telecommunications, business outsourcing and financial services have leapfrogged into the limelight, making the country one of the fastest growing BPO (Back Office Processing) destinations in the world.
Metro Manila
and Cebu
are some of the many which support a growing back office processing business in the Philippines. With the fifth largest English speaking population in the world, the country’s BPO sector is forecasted to earn $10 billion by 2010.
Owing to foreign investments the country became the 5th largest shipbuilding nation with 1.5% share of the global shipbuilding industry next to South Korea(50.6%), China(34.4), EU(5.7%) and Japan(3.7%).
A member of the World Trade Organization
, the Philippines’ most important trading partners remain the U.S. and Japan
, with the Netherlands
, Hong Kong
, People's Republic of China
and Singapore
also contributing to a significant share of its exports.
According to 2005 figures, life expectancy at birth was 68.9 for males, 73.3 for women, and 71 years overall. Although health status improvement has been slow compared to other countries in the region, the Filipinos are in a better state of health now than 50 years ago, according to data by the World Health Organization (WHO).
In 2007, the country’s economy grew at a rate of 7.3%, its fastest pace in 31 years, despite the slowdown in the U.S., its main trading partner. The government promises that it can maintain a 2008 target of 6.3% -7% growth and keep inflation well below the 5% level. The Philippine peso
was one of Asia's top-performing currencies in 2007. Yet, concerns remain over the country’s ability to sustain its growth, especially as the U.S. remains the Philippines’ largest investor with more than $6.5 billion in total Foreign Direct Investment (FDI).
The Philippines is one of the few countries that has successfully resisted the onslaught of the Financial crisis of 2007–2010. Despite the political problems that it has been facing for years, the Philippine economy has proven its resiliency and has a positive outlook on its future.
The Kingdom of Thailand’s economy is characterized by years of neglect during its unstable formative years following World War II
to a decade of continuous growth from 1985. Ten years later, Thailand was one of the world’s fastest-growing economies with an average growth of around 9% annually. During this period, the percentage of population living in poverty fell from 23% in 1981 to less than 10% in 1994. However, the disastrous slump of 1997 triggered a severe recession. During his reelection in 2001, Prime Minister Thaksin Shinawatra
introduced a set of policies that came to be collectively known as Thaksinomics
. These were mainly populist measures that tried to reverse the devastation and havoc wreaked by the 1997 Asian financial crisis.
Thaksin provided a three-year debt moratorium for farmers, heavily subsidized both gasoline and diesel, and began a universal medical program that offered almost free, basic healthcare to the rural poor. Importantly, the village-level business loans helped to revitalize grass-roots manufacturing and services and his emphasis on infrastructure created mega projects, attracting investment, and helping Thailand’s economy grow by nearly 6% between 2001 and 2006.
Today, the country is classified as a middle-income country in Southeast Asia, and continues to make rapid economic and social progress. Despite political turmoil during much of the 2000s and widespread economic difficulties in Europe and the United States, the country's GDP has continued to grow at significant rates, expanding at nearly 8% in 2010. Tourism has also grown sharply in spite of domestic politics, reaching an all-time high of nearly 16 million foreign visitors in 2010.
The economy is heavily export-oriented, with exports accounting for more than two-thirds of the Gross Domestic Product (GDP). With a population of 63.4 million (2006 World Bank Data) Thailand is classified as a upper middle-income country, having made the transition from low-income to middle-income (per capita income of $3000) within the span of just a few decades. Out of the four Tiger Cub economies, Thailand's GDP per capita is second highest.
Known as the “kitchen of the world,” Thailand is the world’s largest rice exporter. In January 2008, a looming global food crisis pushed the regional Thai grade B rice above $1000 a ton.
Large parts of the country are agricultural (around 44 million acres (178,061.8 km²) are under cultivation) with rice the leading crop. Agriculture contributes to around 11% of the GDP with major crops including rubber, corn, cotton, sugarcane and jute. The industrial sector has flourished with a contribution of 45% to the GDP, with Thailand serving as a hub for automotive manufacturing in the Southeast Asian region.
Major industries in the country also include textiles, electronics, cement and food processing. The services share of GDP was 45% in 2006. Including housing, retail trade, tourism, banking and finance, this sector has witnessed high growth in recent years, especially spurred by the popularity of Thailand as a major tourist destination in Southeast Asia. In 2007, international tourist arrivals numbered 14.46 million, a jump of 4.65% compared to 13.82 million tourists the year before. Inbound tourism generated revenues of baht 547,782 million ($16.5 billion) in 2007. Typically, tourism
contributes to a staggering 6% of GDP, more than any other Asian nation. The U.S. and Japan remain Thailand’s largest trading partners, although the creation of the Association of Southeast Asian Nations (ASEAN) Free Trade Agreement in 2002 has meant that Thailand has increased trade with other Asian economies.
The Thai economy is the world’s 67th freest economy, according to the Index of Economic Freedom
for 2009. In the Asia-Pacific region, Thailand was ranked tenth out of 41 countries, as the country scored high on factors such as monetary freedom and investment freedom. Life expectancy at birth is 69.9 years, according to 2005 annual estimates. For women, life expectancy at birth is 74.5 years, while for men it is 65.0 years. The capital of Bangkok
remains the economic, political, cultural, and commercial heart of Thailand – contributing to almost 60% of the GDP despite having less than 20% of the nation’s population. The capital's pace of growth with regard to investment and infrastructure development still far exceeds that of the rest of the country.
All of the figures shown are calculated by the International Monetary Fund, and are in United States dollar
s.
All of the figures shown are calculated by the International Monetary Fund, and are in International dollars.
The list is in billions of dollars.
The table is initially sorted according to the left-most ranking.
Indonesia and the Philippines are two more dominant ASEAN states as seen by their strong and resilient economies which were able to resist the impact of the global recession Both countries are listed in the Next 11 emerging economies of the world. These two countries were also projected to be one of the top 20 economies together with the BRIC
economies by 2050
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
after Singapore.
The Tiger Cub Economies are: Indonesia
Economy of Indonesia
Indonesia is the largest economy in Southeast Asia and is one of the emerging market economies of the world. The country is also a member of G-20 major economies. It has a market economy in which the government plays a significant role by owning more than 164 enterprises and administers prices on...
Malaysia
Economy of Malaysia
The Economy of Malaysia is a growing and relatively open state-oriented and newly industrialised market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans...
Philippines
Economy of the Philippines
The Economy of the Philippines is the 43rd largest in the world, according to the World Bank with an estimated 2010 gross domestic product of $200 billion, it is estimated that by 2015, the ranking of the Philippines would go up to the 18th and by the year 2050 it will land on the 14th...
Thailand
Economy of Thailand
The economy of Thailand is a newly industrialized economy. It is a heavily export-dependent economy, with exports accounting for more than two thirds of gross domestic product ....
These economies follow the four Asian Tigers (Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, Republic of China (Taiwan)
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
).
Introduction
The young of tigerTiger
The tiger is the largest cat species, reaching a total body length of up to and weighing up to . Their most recognizable feature is a pattern of dark vertical stripes on reddish-orange fur with lighter underparts...
s are called cubs. The term Tiger 'Cub' Economies came after the Four Asian Tigers: Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. The Tiger 'Cub' Economies follow the Four Asian Tigers, which pursued an export-driven
Export-oriented industrialization
Export-oriented Industrialization sometimes called export substitution industrialization or export led industrialization is a trade and economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage...
model of economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
.
These countries and territories focused on developing goods for export to highly-industrialized nations. Domestic consumption of foreign products was discouraged through government policies such as high tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s.
The East Asian Tigers singled out education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
as a means of improving productivity; these nations focused on improving the education system at all levels; heavy emphasis was placed on ensuring that all children attended elementary education and compulsory high school education. Money was also spent on improving the college and university system.
Except for Indonesia, these are newly industrialized countries
Newly industrialized countries
The category of newly industrialized country is a socioeconomic classification applied to several countries around the world by political scientists and economists....
. Indonesia and the Philippines are also included in the Next Eleven
Next Eleven
The Next Eleven are eleven countries—Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam — identified by Goldman Sachs investment bank and Jim O'Neill as having a high potential of becoming, along with the BRICS, the world's largest...
list of economies.
Indonesia
| Republic of Indonesia | |||
|---|---|---|---|
 |
|||
The Republic of Indonesia, fourth most populated country, is a Tiger Cub Economy. Indonesia’s economy in the first few decades after its independence was marred by political mismanagement. Yet, the country’s remarkable resilience to endure the deepest natural and political strife has ensured that Indonesia is now one of Southeast Asia’s fastest growing economies. Indonesia is fast becoming one of the world's most important political and economic success stories.
Despite being a market-based economy, the government exercises control over key areas. With around 158-state owned or public sector units, the government regulates the prices of all basic goods such as rice, electricity or fuel. Agriculture led the economy in output until 1991, when it was overtaken by manufacturing. In 2005, agriculture contributed around 13% of the GDP although it employs an estimated 44% of Indonesia’s workers. Once a major importer of rice, several reforms by the government ensured that rice production grew at 5% annually between 1969 and 1984, mainly concentrated in Java. This helped Indonesia achieve a level of self-sufficiency in the key commodity. The country now exports tea, cocoa, spices, coffee, and natural rubber although they constitute less than 10% of Indonesia’s total exports.
Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
, with a population of more than 23 million people is the largest city in Indonesia, the home of the Indonesia Stock Exchange, and also the seat of The Association of Southeast Asian Nations
Association of Southeast Asian Nations
The Association of Southeast Asian Nations, commonly abbreviated ASEAN rarely ), is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has...
(ASEAN) secretariat.
From being little more than a manufacturer of handicrafts and textiles, Indonesia’s manufacturing sector progressed phenomenally. During Suharto’s New Order regime, Indonesia grew to be a key producer of steel, aluminum, and cement. Between 1985 and 1995, the country’s GDP grew by around 95%, even as inflation remained well within 10%.
However, the Asian economic crisis struck a deathly blow. Indonesia collapsed dramatically and its currency plummeted. Forced to take massive aid from the International Monetary Fund (IMF), the Indonesian government had to resort to a number of austerity measures aimed at reforming the financial sector. The IMF subsequently withdrew aid in 1998, stating that the government had failed to abide by its terms – the effect was cataclysmic. The GDP plunged 13.2% in 1998, shrinking again in 1999, and almost half of all corporations became insolvent in 1999. Social unrest spread and unemployment peaked. A change of government with Suharto stepping down finally offered Indonesia a ray of hope. The IMF offered aid again and the battered economy began to find its feet once more although growth has been a bit erratic. Industry represented 41.7% of the GDP according to 2006 figures and exports such as wood products, clothing, footwear and textiles accounted for 56% of Indonesia’s total exports in 2004.
The services sector contributes to 46% of Indonesia’s GDP (2006). During the 1990s, services expanded at an annual rate of 8.6%, more than twice as fast as agriculture, and continues to grow. Tourism remains an important source of revenue with around five million tourists visiting Indonesia in 2005, although travel advisories to this earthquake-prone region are frequent.
Indonesia’s major trade partners are Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, the U.S, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, and South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
. Trade with the other ASEAN members too is increasing. Currently, the country is the world’s top exporter of liquefied natural gas (LPG). Indonesia, which was a long-time member of OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
, recently conveyed its decision to pull out of the organization in 2008. Mining and mineral production represents around 11.9% of GDP with around 0.5% of the country’s labor force engaged in this sector. Life expectancy at birth is estimated at 71.6 years for women and 67.8 for men, or 69.7 years total. With a 12-year public and private education system, around 3.7% of the government’s expenditure is ploughed towards education.
Seismic shifts in its economic history have been mirrored in the country’s banking sector. Chaos reigned supreme during the 1997-98 crisis when many domestic banks collapsed. Relations with the IMF have been tense, and although the government established the Indonesian Bank Restructuring Agency
Indonesian Bank Restructuring Agency
The Indonesian Bank Restructuring Agency ) is part of a series of strategic policies taken by the Indonesian government in response to the banking and economic crisis which befell the country following the onset of the Asian monetary crisis in mid 1997...
in 1998 to rebuild the private banking sector, the pace of reform has been slow. Inflation came down from 20.4% in 2000 to 13.6% in 2006. Foreign investment in Indonesia, however, has been on the decline ever since the banking crisis and it remains to be seen if promises of future stability might bring the fillip that this country needs.
Indonesian consumer and market-based economy has contribute to the resilience of Indonesian economy during Financial crisis of 2007–2010. Indonesia has seen the emergence of a confident new middle class as its economy continues to perform well, better than others in the region. Its success is partly because a huge proportion of the goods bought and sold in the nation's shops are also made in Indonesia, keeping jobs and money in the country.
The country already figures among the world's top three exporters of coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
, natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, crude palm oil
Palm oil
Palm oil, coconut oil and palm kernel oil are edible plant oils derived from the fruits of palm trees. Palm oil is extracted from the pulp of the fruit of the oil palm Elaeis guineensis; palm kernel oil is derived from the kernel of the oil palm and coconut oil is derived from the kernel of the...
and natural rubber
Rubber
Natural rubber, also called India rubber or caoutchouc, is an elastomer that was originally derived from latex, a milky colloid produced by some plants. The plants would be ‘tapped’, that is, an incision made into the bark of the tree and the sticky, milk colored latex sap collected and refined...
. It is home to the world's largest gold mine and second-largest copper mine. Its 237 million people give Indonesia a larger population than Brazil or Russia. The growth of its workforce over the next two decades will likely prove more promising than for any of the four BRIC countries. Its still relatively low Internet and credit penetration give the country room to grow.
Malaysia
| Malaysia | |||
|---|---|---|---|
 |
|||
Malaysia is a growing and relatively open
Open economy
An open economy is an economy in which there are economic activities between domestic community and outside, e.g. people, including businesses, can trade in goods and services with other people and businesses in the international community, and flow of funds as investment across the border...
state-oriented market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans. In 2007, the economy of Malaysia was the 29th largest economy in the world by purchasing power parity with gross domestic product for 2007 estimated to be $357.9 billion with a growth rate of 5% to 7% since 2007
Today, Malaysia
Economy of Malaysia
The Economy of Malaysia is a growing and relatively open state-oriented and newly industrialised market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans...
is an active participant in Southeast Asia. Well-endowed with natural resources, its rich tropical forests, endless beaches, and cultural diversity attract a wide number of tourists from around the world. It is by far the most visited country in Southeast Asia
World Tourism rankings
The World Tourism rankings are compiled by the United Nations World Tourism Organization as part of their World Tourism Barometer publication, which is released three times throughout the year...
, ahead of the politically unstable Thailand at 22.1 millions visitors in 2008. Penang
Penang
Penang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the...
, Borneo and Kota Kinabalu
Kota Kinabalu
Kota Kinabalu , formerly known as Jesselton, is the capital of Sabah state in East Malaysia. It is also the capital of the West Coast Division of Sabah. The city is located on the northwest coast of Borneo facing the South China Sea. The Tunku Abdul Rahman National Park lies on one side and Mount...
remain prime destinations. Geographically, the country lies close to major world trade routes, bringing early exposure to a burgeoning global economy. Malaysian plantations cultivate cocoa, timber, pepper, pineapple and sugar cane, while rice paddies dot the northern reaches.
In the 1970s, Malaysia began to imitate the four Asian Tiger economies (Republic of Korea (South Korea), Republic of China (Taiwan), then British Crown Colony of Hong Kong and the Republic of Singapore) and committed itself to a transition from being reliant on mining and agriculture to an economy that depends more on manufacturing. With Japanese investment, heavy industries flourished and in a matter of years, Malaysian export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
s became the country's primary growth engine. Malaysia consistently achieved more than 7% GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
growth along with low inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
in the 1980s and the 1990s. Today, Malaysia is one of the world's largest computer hard disk manufacturing sites.
The Southeast Asian nation experienced an economic boom and underwent rapid development during the late 20th century and has a GDP per capita of $14,400, being considered a newly industrialized country. As one of three countries that control the Strait of Malacca
Strait of Malacca
The Strait of Malacca is a narrow, stretch of water between the Malay Peninsula and the Indonesian island of Sumatra. It is named after the Malacca Sultanate that ruled over the archipelago between 1414 to 1511.-Extent:...
, international trade plays a large role in its economy. At one time, it was the largest producer of tin
Tin
Tin is a chemical element with the symbol Sn and atomic number 50. It is a main group metal in group 14 of the periodic table. Tin shows chemical similarity to both neighboring group 14 elements, germanium and lead and has two possible oxidation states, +2 and the slightly more stable +4...
, rubber
Rubber
Natural rubber, also called India rubber or caoutchouc, is an elastomer that was originally derived from latex, a milky colloid produced by some plants. The plants would be ‘tapped’, that is, an incision made into the bark of the tree and the sticky, milk colored latex sap collected and refined...
and palm oil
Palm oil
Palm oil, coconut oil and palm kernel oil are edible plant oils derived from the fruits of palm trees. Palm oil is extracted from the pulp of the fruit of the oil palm Elaeis guineensis; palm kernel oil is derived from the kernel of the oil palm and coconut oil is derived from the kernel of the...
in the world. Manufacturing has a large influence in the country's economy.
Its indigenous labor workforce has been supplemented by immigrants who continue to contribute to Malaysia’s growth. The economy has always been exceptionally open to external influences such as globalization. Foreign capital has played a major role throughout.
The Malaysian Ringgit
Malaysian ringgit
The Malaysian ringgit is the currency of Malaysia. It is divided into 100 sen...
was unpegged from the U.S. dollar in 2005 leading to the currency appreciating by 6% against the dollar in 2006. The country’s GDP is projected to grow at 5.6% in 2008. Short-term foreign debt remains low, although reserves remain adequate. Low inflation persists.
In March 2005, the United Nations Conference on Trade and Development
United Nations Conference on Trade and Development
The United Nations Conference on Trade and Development was established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues....
(UNCTAD) published a paper on the sources and pace of Malaysia's recovery, written by Jomo K.S. of the applied economics department, University of Malaya
University of Malaya
The University of Malaya is located on a campus near the centre of Kuala Lumpur, and is the oldest university in Malaysia. It was founded in 1905 as a public-funded tertiary institution...
, Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
. The paper concluded that the controls imposed by Malaysia's government neither hurt nor helped recovery. The chief factor was an increase in electronics components exports, which was caused by a large increase in the demand for components in the United States, which was caused, in turn, by a fear of the effects of the arrival of the year 2000 (Y2K
Year 2000 problem
The Year 2000 problem was a problem for both digital and non-digital documentation and data storage situations which resulted from the practice of abbreviating a four-digit year to two digits.In computer programs, the practice of representing the year with two...
) upon older computers and other digital devices.
However, the post Y2K slump of 2001 did not affect Malaysia as much as other countries. This may have been clearer evidence that there are other causes and effects that can be more properly attributable for recovery. One possibility is that the currency speculators had run out of finance after failing in their attack on the Hong Kong dollar in August 1998 and after the Russian ruble
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
collapsed. (See George Soros
George Soros
George Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes...
)
Regardless of cause and effect claims, rejuvenation of the economy also coincided with massive government spending and budget deficits in the years that followed the crisis. Later, Malaysia enjoyed faster economic recovery compared to its neighbours. The country has recovered to the levels of the pre-crisis era – as an example, the Kuala Lumpur Composite Index
Kuala Lumpur Composite Index
The Kuala Lumpur Composite Index is a capitalization-weighted stock market index. Introduced in 1986, it is now known as the FTSE Bursa Malaysia KLCI...
hit an all time high of 1,386 on 20 June 2007 which is approximately 100 points higher than the pre-crisis record of 1,275 in 1993.
While the pace of development today is not as rapid, it is seen to be more sustainable. Although the controls and economic housekeeping may or may not have been the principal reasons for recovery, there is no doubt that the banking sector has become more resilient to external shocks. The current account has also settled into a structural surplus, providing a cushion to capital flight. Asset prices are generally back to their pre-crisis heights, despite the effects of the global financial crisis. Malaysia is also the world's largest Islamic banking
Islamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
and financial centre.
As an oil and gas exporter, Malaysia has profited from higher world energy prices recently. Yet, the slowdown in the U.S. economy is bound to have some ripple effects here too. Historically, Malaysia’s economy has always been dependent on a limited range of products. Unfortunately, if the trend continues, the Malaysian economy will remain heavily dependent on electronic exports ($60.2 billion or 62% of total exports). Slower demand for electronic goods in particular and the possibility of further global financial market turbulence may be of some concern to Malaysia going forward.
According to World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, Malaysia ranks 24th in Ease of doing business. Malaysia's strengths in the rank includes getting credit (rank 3rd), protecting investor (ranked 4th) and doing trade across borders (ranked 21st). Weaknesses include dealing with licenses (ranked 105th). The study ranks 178 countries in all aspect of doing business. In the investor protection category of the survey, Malaysia had scored a perfect 10 for the extent of disclosure, nine for director liability and seven for shareholder suits.
The government is moving towards a more business friendly environment by setting up a special task force to facilitate business called PEMUDAH, which means "simplifier" in Malay. Highlights includes easing restrictions and requirement to hire expatriates, shorten time to do land transfers and increasing the limit of sugar storage (a controlled item in Malaysia) for companies. The efforts of PEMUDAH is beginning to show fruits as their ranking improved to number 20 in 2009, with marked improvement in four areas: getting credit; dealing with construction permits; paying taxes; and enforcing contracts.
According to the vision Wawasan 2020
Wawasan 2020
Wawasan 2020 or Vision 2020 is a Malaysian ideal introduced by the former Prime Minister of Malaysia, Mahathir bin Mohamad during the tabling of the Sixth Malaysia Plan in 1991...
foresees a strong and confident Malaysia – powerful in the ASEAN region already, but embracing the world stage – the towering Petronas Twin Towers
Petronas Twin Towers
The Petronas Towers are skyscrapers and twin towers in Kuala Lumpur, Malaysia...
that loom over Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
an accurate symbol of this vision.
Philippines
| Republic of the Philippines | |||
|---|---|---|---|
 |
|||
The Republic of the Philippines is rich in human and natural resources. It was once the second largest economy in Asia next only to Japan. It had strong economic growth, high standard of living, major infrastructure developments and one of the best education systems in Asia during the twenty year rule of President Ferdinand Marcos
Ferdinand Marcos
Ferdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...
. Allegations of corruption and cronyism plagued the Marcos administration. It was in the late 1980s that the Philippines was called the "sick man of Asia" as the economy suddenly collapsed. Capital flight remained after the assassination of opposition leader Benigno Aquino II. Marcos’ removal from office ushered in a new era for the Philippines, although corruption reached new levels during this period resulting to a further decline of the economy. Then, under Fidel V. Ramos
Fidel V. Ramos
Fidel "Eddie" Valdez Ramos , popularly known as FVR, was the 12th President of the Philippines from 1992 to 1998. During his six years in office, Ramos was widely credited and admired by many for revitalizing and renewing international confidence in the Philippine economy.Prior to his election as...
, the government embarked on a development plan called ‘Philippines 2000
Philippines 2000
Philippines 2000 was the socio-economic program of former Philippine president Fidel V. Ramos. The plan envisioned the Philippines achieving Newly-industrialized country status by the year 2000.-Platform:...
’, which enhanced privatization in key industries like banking, electricity, telecommunications, shipping and oil. The Ramos administration's policies transformed the Philippines into Asia's new tiger economy.
Unlike other countries in the region, the Philippines contracted less dramatically during the Asian crisis of 1997, though inflation soared. In 2010, inflation was 3.8%, well below the double-digit inflation levels during the crisis. It should be noted that the Philippines was the first country to bounce back from recession among its neighbours.
Historically, the agricultural sector in the Philippines has underperformed, considering that it employs about 36% of the labor force even while contributing just 13.6% to the Gross Domestic Product (GDP). Bananas, sugar, pineapples and coconuts are some of the most important cash crops, and the Philippines remains one of the world’s leading producers of coconut products. In one of the most stunning cases of environmental degradation, the Philippines has turned from being one of the world’s biggest exporters of tropical hardwoods in the 1970s to being a net importer of forest products by 1990s.
Industry contributes to 33.2% of the GDP, with consumer goods such as processed goods, coal, and garments dominating the manufacturing sector. Metro Manila
Metro Manila
Metropolitan Manila , the National Capital Region , or simply Metro Manila, is the metropolitan region encompassing the City of Manila and its surrounding areas in the Philippines...
and CALABARZON
CALABARZON
CALABARZON is one of the regions of the Philippines. It is also designated as Region IV-A and its regional center is Calamba City in Laguna...
serve as the country's major industrial centers. Mining was once one of the predominant industries, with the Philippines blessed with minerals like copper, gold, silver, chromium and lead. The closure of several mines and crumbling infrastructure coupled with worries about environmental havoc, have led to the decline of the mining industry. Encouragingly, Gloria Macapagal Arroyo’s government has announced a change in policy from ‘tolerance to promotion of mining.’
The Philippines is the second largest producer of geothermal power
Geothermal power
Geothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. Earth's geothermal energy originates from the original formation of the planet and from radioactive decay of minerals...
in the world after the U.S., and geothermal power accounts for about 50% of domestic power generation, followed by hydropower, which accounts for about 33%. The domestic power mix is 2/3 from fossil fuels as of 2004.
One of the most competitive aspects of the Philippine economy has been the rapid growth of its services sector since 1980. Contributing to 53.2% of the GDP in 2006, segments such as telecommunications, business outsourcing and financial services have leapfrogged into the limelight, making the country one of the fastest growing BPO (Back Office Processing) destinations in the world.
Metro Manila
Metro Manila
Metropolitan Manila , the National Capital Region , or simply Metro Manila, is the metropolitan region encompassing the City of Manila and its surrounding areas in the Philippines...
and Cebu
Cebu
Cebu is a province in the Philippines, consisting of Cebu Island and 167 surrounding islands. It is located to the east of Negros, to the west of Leyte and Bohol islands...
are some of the many which support a growing back office processing business in the Philippines. With the fifth largest English speaking population in the world, the country’s BPO sector is forecasted to earn $10 billion by 2010.
Owing to foreign investments the country became the 5th largest shipbuilding nation with 1.5% share of the global shipbuilding industry next to South Korea(50.6%), China(34.4), EU(5.7%) and Japan(3.7%).
A member of the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
, the Philippines’ most important trading partners remain the U.S. and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, with the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
also contributing to a significant share of its exports.
According to 2005 figures, life expectancy at birth was 68.9 for males, 73.3 for women, and 71 years overall. Although health status improvement has been slow compared to other countries in the region, the Filipinos are in a better state of health now than 50 years ago, according to data by the World Health Organization (WHO).
In 2007, the country’s economy grew at a rate of 7.3%, its fastest pace in 31 years, despite the slowdown in the U.S., its main trading partner. The government promises that it can maintain a 2008 target of 6.3% -7% growth and keep inflation well below the 5% level. The Philippine peso
Philippine peso
The peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...
was one of Asia's top-performing currencies in 2007. Yet, concerns remain over the country’s ability to sustain its growth, especially as the U.S. remains the Philippines’ largest investor with more than $6.5 billion in total Foreign Direct Investment (FDI).
The Philippines is one of the few countries that has successfully resisted the onslaught of the Financial crisis of 2007–2010. Despite the political problems that it has been facing for years, the Philippine economy has proven its resiliency and has a positive outlook on its future.
Thailand
| Kingdom of Thailand | |||
|---|---|---|---|
 |
|||
The Kingdom of Thailand’s economy is characterized by years of neglect during its unstable formative years following World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
to a decade of continuous growth from 1985. Ten years later, Thailand was one of the world’s fastest-growing economies with an average growth of around 9% annually. During this period, the percentage of population living in poverty fell from 23% in 1981 to less than 10% in 1994. However, the disastrous slump of 1997 triggered a severe recession. During his reelection in 2001, Prime Minister Thaksin Shinawatra
Thaksin Shinawatra
Thaksin Shinawatra is a Thai businessman and politician, who was Prime Minister of Thailand from 2001 to 2006, when he was overthrown in a military coup....
introduced a set of policies that came to be collectively known as Thaksinomics
Thaksinomics
Thaksinomics is a term used to refer to the economic set of policies of Thaksin Shinawatra, Prime Minister of Thailand from 2001-2006. There has been considerable controversy over the role Thaksinomics has played in Thailand's recovery from the 1997 Asian financial crisis...
. These were mainly populist measures that tried to reverse the devastation and havoc wreaked by the 1997 Asian financial crisis.
Thaksin provided a three-year debt moratorium for farmers, heavily subsidized both gasoline and diesel, and began a universal medical program that offered almost free, basic healthcare to the rural poor. Importantly, the village-level business loans helped to revitalize grass-roots manufacturing and services and his emphasis on infrastructure created mega projects, attracting investment, and helping Thailand’s economy grow by nearly 6% between 2001 and 2006.
Today, the country is classified as a middle-income country in Southeast Asia, and continues to make rapid economic and social progress. Despite political turmoil during much of the 2000s and widespread economic difficulties in Europe and the United States, the country's GDP has continued to grow at significant rates, expanding at nearly 8% in 2010. Tourism has also grown sharply in spite of domestic politics, reaching an all-time high of nearly 16 million foreign visitors in 2010.
The economy is heavily export-oriented, with exports accounting for more than two-thirds of the Gross Domestic Product (GDP). With a population of 63.4 million (2006 World Bank Data) Thailand is classified as a upper middle-income country, having made the transition from low-income to middle-income (per capita income of $3000) within the span of just a few decades. Out of the four Tiger Cub economies, Thailand's GDP per capita is second highest.
Known as the “kitchen of the world,” Thailand is the world’s largest rice exporter. In January 2008, a looming global food crisis pushed the regional Thai grade B rice above $1000 a ton.
Large parts of the country are agricultural (around 44 million acres (178,061.8 km²) are under cultivation) with rice the leading crop. Agriculture contributes to around 11% of the GDP with major crops including rubber, corn, cotton, sugarcane and jute. The industrial sector has flourished with a contribution of 45% to the GDP, with Thailand serving as a hub for automotive manufacturing in the Southeast Asian region.
Major industries in the country also include textiles, electronics, cement and food processing. The services share of GDP was 45% in 2006. Including housing, retail trade, tourism, banking and finance, this sector has witnessed high growth in recent years, especially spurred by the popularity of Thailand as a major tourist destination in Southeast Asia. In 2007, international tourist arrivals numbered 14.46 million, a jump of 4.65% compared to 13.82 million tourists the year before. Inbound tourism generated revenues of baht 547,782 million ($16.5 billion) in 2007. Typically, tourism
Tourism in Thailand
Tourism is a major economic factor in the Kingdom of Thailand, contributing an estimated 6.7% to Thailand's GDP in 2007.-Overview:Among the reasons for the increase in tourism in the 1960s were the stable political atmosphere and the development of Bangkok as a crossroads of international air...
contributes to a staggering 6% of GDP, more than any other Asian nation. The U.S. and Japan remain Thailand’s largest trading partners, although the creation of the Association of Southeast Asian Nations (ASEAN) Free Trade Agreement in 2002 has meant that Thailand has increased trade with other Asian economies.
The Thai economy is the world’s 67th freest economy, according to the Index of Economic Freedom
Index of Economic Freedom
The Index of Economic Freedom is a series of 10 economic measurements created by The Heritage Foundation and The Wall Street Journal. Its stated objective is to measure the degree of economic freedom in the world's nations....
for 2009. In the Asia-Pacific region, Thailand was ranked tenth out of 41 countries, as the country scored high on factors such as monetary freedom and investment freedom. Life expectancy at birth is 69.9 years, according to 2005 annual estimates. For women, life expectancy at birth is 74.5 years, while for men it is 65.0 years. The capital of Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...
remains the economic, political, cultural, and commercial heart of Thailand – contributing to almost 60% of the GDP despite having less than 20% of the nation’s population. The capital's pace of growth with regard to investment and infrastructure development still far exceeds that of the rest of the country.
The Tiger Cubs Today
This list contains the superlative economic achievements of the tiger cub economies. Information on Thailand and Malaysia is not available.| Country | Achievement | Field | Date |
|---|---|---|---|
 Indonesia |
Largest palm oil producer, output of 15,900,000 tons | Agriculture | 2006 |
| Indonesia |
Largest cinnamon producer, output of 60,000 tons | Agriculture | 2005 |
| Indonesia |
Largest clove producer, output of 110,000 tons | Agriculture | 2005 |
| Indonesia |
Largest area of permanent crops Land use statistics by country This article includes the table with land use statistics by country. Countries are sorted by their total cultivated land area which is a sum of total arable land area and total area of permanent crops... , 128,581 km² |
Agriculture Geography |
2005 |
 Malaysia |
Tallest Twin Towers Petronas Twin Towers The Petronas Towers are skyscrapers and twin towers in Kuala Lumpur, Malaysia... , 452 m |
Culture | 2010 |
 Philippines |
Largest coconut producer, output of 17,000,000 tons | Agriculture | 2008 |
| Philippines |
Largest Shipbuilding nation in SEA Shipbuilding Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both... , output of 400,000 gross tons |
Industry | 2008 |
 Thailand |
Largest Rice Exporter | Agriculture | 2009 |
Demographics
| Country Country A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously... or territory |
Area km² | Population | Population density per km² |
HDI (2010) | Capital |
|---|---|---|---|---|---|
| Indonesia |
1,910,931 | 237,556,363 | 124 | 0.600 | Jakarta Jakarta Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre... |
| Malaysia |
330,803 | 28,250,500 | 85 | 0.744 | Kuala Lumpur Kuala Lumpur Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million... , Putrajaya Putrajaya Putrajaya is a planned city, located 25km south of Kuala Lumpur, that serves as the federal administrative centre of Malaysia. The seat of government was shifted in 1999 from Kuala Lumpur to Putrajaya, due to the overcrowding and congestion in the Kuala Lumpur areas... |
| Philippines |
300,000 | 94,013,200 | 313 | 0.638 | Manila Manila Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,... |
| Thailand |
513,120 | 67,070,000 | 131 | 0.654 | Bangkok Bangkok Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom... |
Economy
| Country Country A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously... or territory |
GDP nominal millions of USD (2009) |
GDP PPP millions of USD (2009) |
GDP nominal per capita USD (2009) |
GDP PPP per capita USD (2009) |
|---|---|---|---|---|
| Indonesia |
539,377 | 962,471 | 2,329 | 4,151 |
| Malaysia |
192,955 | 384,119 | 6,950 | 13,800 |
| Philippines |
161,196 | 320,384 | 1,748 | 3,516 |
| Thailand |
263,979 | 546,095 | 3,941 | 8,051 |
Politics
| Country Country A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously... or territory |
Democracy Index Democracy Index The Democracy Index is an index compiled by the Economist Intelligence Unit that claims to measure the state of democracy in 167 countries, of which 166 are sovereign states and 165 are UN member states... (2010) |
Press Freedom Index Press Freedom Index The Press Freedom Index is an annual ranking of countries compiled and published by Reporters Without Borders based upon the organization's assessment of their press freedom records. Small countries, such as Andorra, are excluded from this report... (2010) |
Corruption Perceptions Index Corruption Perceptions Index Since 1995, Transparency International publishes the Corruption Perceptions Index annually ranking countries "by their perceived levels of corruption, as determined by expert assessments and opinion surveys." The CPI generally defines corruption as "the misuse of public power for private... (2010) |
Political Status |
|---|---|---|---|---|
| Indonesia |
6.53 | 35.83 | 2.8 | Unitary Presidential Republic |
| Malaysia |
6.19 | 50.75 | 4.4 | Federal Constitutional Elective Monarchy and Parliamentary Democracy |
| Philippines |
6.12 | 60.00 | 2.4 | Unitary Presidential Constitutional Republic |
| Thailand |
6.55 | 56.83 | 3.5 | Constitutional Monarchy and Parliamentary Democracy |
Future GDP
All of the figures shown are calculated by the International Monetary Fund, and are in International dollars.| Country | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Estimate as of |
|---|---|---|---|---|---|---|---|
| 13,551.394 | 13,869.030 | 14,392.045 | 15,195.960 | 16,148.905 | 17,160.275 | October 2009 | |
| 7,998.445 | 8,338.503 | 8,750.610 | 9,259.348 | 9,908.203 | 10,601.703 | October 2009 | |
| 4,149.380 | 4,356.391 | 4,579.963 | 4,854.887 | 5,179.712 | 5,541.479 | October 2009 | |
| 3,536.223 | 3,635.074 | 3,752.025 | 3,912.515 | 4,086.977 | 4,268.886 | October 2009 |
All of the figures shown are calculated by the International Monetary Fund, and are in United States dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
s.
| Country | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Estimate as of |
|---|---|---|---|---|---|---|---|
| 7,468.991 | 7,656.940 | 8,014.050 | 8,521.330 | 9,103.663 | 9,725.792 | October 2009 | |
| 3,972.987 | 4,168.637 | 4,399.357 | 4,660.487 | 4,984.137 | 5,330.263 | October 2009 | |
| 2,223.876 | 2,424.097 | 2,576.527 | 2,746.684 | 2,940.180 | 3,149.431 | October 2009 | |
| 1,720.785 | 1,819.725 | 1,873.879 | 1,942.658 | 2,013.962 | 2,087.882 | October 2009 |
All of the figures shown are calculated by the International Monetary Fund, and are in International dollars.
The list is in billions of dollars.
| Country Country A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously... | 2009 | 2010 | 2011 | | 2012 | 2013 | 2014 | Estimate as of |
|---|---|---|---|---|---|---|---|
| 960.776 | 1,021.822 | 1,088.228 | 1,168.547 | 1,262.938 | 1,368.711 | October 2009 | |
| 536.388 | 564.784 | 598.624 | 639.761 | 691.438 | 747.232 | October 2009 | |
| 376.206 | 391.570 | 413.244 | 443.744 | 479.589 | 518.288 | October 2009 | |
| 326.134 | 341.745 | 359.795 | 382.688 | 407.748 | 434.414 | October 2009 |
The table is initially sorted according to the left-most ranking.
| Country Country A country is a region legally identified as a distinct entity in political geography. A country may be an independent sovereign state or one that is occupied by another state, as a non-sovereign or formerly sovereign political division, or a geographic region associated with a previously... | 2009 | 2010 | 2011 | | 2012 | 2013 | 2014 | Estimate as of |
|---|---|---|---|---|---|---|---|
| 514.931 | 568.589 | 612.199 | 661.113 | 716.887 | 777.890 | October 2009 | |
| 266.434 | 282.351 | 300.957 | 322.009 | 347.815 | 375.689 | October 2009 | |
| 207.350 | 216.181 | 230.110 | 248.835 | 270.360 | 293.746 | October 2009 | |
| 158.702 | 171.078 | 179.693 | 190.014 | 200.928 | 212.469 | October 2009 |
Indonesia and the Philippines are two more dominant ASEAN states as seen by their strong and resilient economies which were able to resist the impact of the global recession Both countries are listed in the Next 11 emerging economies of the world. These two countries were also projected to be one of the top 20 economies together with the BRIC
BRIC
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
economies by 2050
| Rank | Country | 2010 | 2025 | 2050 |
|---|---|---|---|---|
| 1 |  United States |
14,535,000 | 20,087,000 | 38,514,000 |
| 4 | ' | 4,667,000 | 25,610,000 | 70,710,000 |
| 9 |  Brazil |
1,346,000 | 2,831,000 | 11,366,000 |
| 10 |  Russia |
1,371,000 | 3,341,000 | 8,580,000 |
| 11 |  India |
1,256,000 | 4,316,000 | 37,668,000 |
| 15 | Indonesia |
419,000 | 1,479,000 | 7,010,000 |
| 19 | Philippines |
162,000 | 582,000 | 3,010,000 |
| Rank | Country | 2010 | 2025 | 2050 |
|---|---|---|---|---|
| 1 | United States |
47,014 | 57,446 | 91,683 |
| 10 | Russia |
9,833 | 26,061 | 78,576 |
| 11 | Brazil |
6,882 | 12,996 | 49,759 |
| 14 |  Mainland China |
3,463 | 12,688 | 49,650 |
| 15 | Indonesia |
1,724 | 3,711 | 22,395 |
| 16 | Philippines |
1,688 | 3,372 | 20,388 |
| 19 | India |
1,061 | 2,979 | 20,836 |
See also
- Asian CenturyAsian CenturyThe Asian Century is a term used to describe the belief that, if certain demographic and economic trends persist, the 21st century will be dominated by Asian politics and culture, as the 20th century is sometimes referred to as the American Century, and the 19th century the British...
- Four Asian Tigers
- BRICBRICIn economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
- N-11Next ElevenThe Next Eleven are eleven countries—Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam — identified by Goldman Sachs investment bank and Jim O'Neill as having a high potential of becoming, along with the BRICS, the world's largest...
- Newly industrialized countriesNewly industrialized countriesThe category of newly industrialized country is a socioeconomic classification applied to several countries around the world by political scientists and economists....
- Gulf TigerGulf TigerThe Gulf Tiger or Arab Gulf Tiger is a nickname used to describe the period of rapid economic growth in the city of Dubai. The boom that Dubai has been experiencing since the 1990s is still going on, transforming the city from a desert village to a world class economic hub.- Characteristics :The...
- Tatra TigerTatra Tiger"Tatra Tiger" is a nickname that refers to the economy of Slovakia in period 2002 - 2007 and after 2010 following the ascendance of a right-wing coalition in September 2002 which engaged in a program of liberal economic reforms...
- Baltic TigerBaltic TigerBaltic Tiger is a term used to refer to any of the three Baltic states of Estonia, Latvia, and Lithuania during their periods of economic boom, which started after the year 2000 and continued until 2006–2007...
- Celtic TigerCeltic TigerCeltic Tiger is a term used to describe the economy of Ireland during a period of rapid economic growth between 1995 and 2007. The expansion underwent a dramatic reversal from 2008, with GDP contracting by 14% and unemployment levels rising to 14% by 2010...
- Nordic Tiger
- Anatolian TigersAnatolian TigersAnatolian Tigers is a term internationally used in the context of the Turkish economy to refer to and to explain the phenomenon of a number of cities in Turkey which have displayed impressive growth records since the 1980s, as well as to a defined new breed of entrepreneurs rising in prominence...
- 1997 Asian financial crisis