College of Economics and Management

COLLEGE OF ECONOMICS AND MANAGEMENT
NAME : AMAGORO WINNY
REG NO. : 1174-05014-14266
COURSE : BBA-FINANCE AND ACCOUNTING
COURSE UNIT : INTERNATIONAL TRADE THEORY
YEAR : TWO
SEMESTER : TWO
SESSION : WEEKEND
LECTURER : DR. KIWEEWA EMMANUEL
List and explain economic lessons that your country can learn from the
growth and the development experience of the four Asian tiger economies.
ECONOMIC LESSONS FROM THE ASIAN TIGERS, JAPAN, EUROPE AND
AMERICA
Introduction
Prior to the 1997 Asian financial crisis, the growth of the Four Asian Tiger
economies (commonly referred to as "the Asian Miracle") has been
attributed to export oriented policies and strong development policies.
Unique to these economies were the sustained rapid growth and high levels
of equal income distribution. A World Bank report suggests two development
policies among others as sources for the Asian miracle: factor accumulation
and macroeconomic management.
The Hong Kong economy underwent industrialization with the development

of a textile industry in the 1950s. By the 1960s, manufacturing in the British
colony had expanded and diversified to include clothing, electronics, and
plastics for export orientation. Following Singapore's independence,
the Economic Development Board formulated and implemented national
economic strategies to promote the country's manufacturing sector.
Industrial estates were set up and foreign investment was attracted to the
country with tax incentives. Meanwhile, Taiwan and South Korea began to
industrialize in the mid-1960s with heavy government involvement including
initiatives and policies. Both countries pursued export-oriented
industrialization as in Hong Kong and Singapore. The four countries were
inspired by Japan's evident success, and they collectively pursued the same
goal by investing in the same categories: infrastructure and education. They
also benefited from foreign trade advantages that sets them apart from
other countries, most significantly economic support from the United States;
part of this is manifested in the proliferation of American electronic products
in common households of the Four Tigers. The following are the
characteristics of the ASIAN tigers they focus on exports; they have
educated populace and they have high savings rates
Uganda can learn from the growth and the development experience
of the four Asian tiger economies in the following ways;
Focus on exports
Whereas other developing countries use import substitution strategies for
economic development, the Asian tigers focused on export-oriented
industrial development to richer countries. Domestic production was
discouraged through government policies such as high tariffs also trading the
surplus with the richer countries.
Human capital development

They developed specialized skills for their personnel in order to improve
productivity through raising their educational standards. Therefore in
Uganda if we are to adopt that aspect of specialization of skills and improve
on our educational standards through ensuring that one undertakes course
for which he best understands.
Abundant and cheap Labour
The four Asian Tigers economies had an abundant and cheap source of
labour which helped in the tiger economies to develop a very faster rate.
Accomplishing of various development projects at a cheap labour. They had
an abundance of cheap labour and this is highly needed for economic
development Uganda
Existence of an adequately developed financial system
Uganda needs to adopt an adequately developed capital market which could
ensure adequate mobilization of capital for industrial and economic
development.
Social and political stability
The ASIAN tigers were socially and politically stable which helped and
became a vehicle which perpetuated economic development. Therefore by
maintaining social and political stability together with a stable
macroeconomic environment can enable a country like Uganda develop at a
very fast rate.
Managing and controlling imports and exports

Uganda should ensure that High tariffs on imports in the early days to
discourage import and encourage export in order to realize its goals of
development.
People centered Leadership

Leadership that is interested in the welfare of the citizens would motivate
labour to work hard, thereby raising the level of productivity.
Developing an appetite for savings

High saving rate will increase the rate of capital formation. This should be
done by private institutions and government instead of spending prestigious
non-productive project.
Development of export industries and promotion of certain basic industries
that produce competitive goods for the world market.
Economic integration
Economic integration or co-operation: This has helped to limit wars which led
to waste of resources in the past. Co-operation in many areas of
development has created economies of scale in production and increased the
level of investment which can help developing countries like Uganda.
Export-oriented economies
Export-oriented economies: They bought cheap raw-materials from the
developing countries and produced manufactured goods in which they have
comparative advantage.
Massive investments in manufacturing industries with reduced reliance on

agriculture.
Massive investment in education and human capital development.
Agrarian and industrial revolutions in Britain led to discoveries and

inventions which changed the economic landscape of Europe.
A well developed financial sector:

A well developed financial sector: Europe has a well developed financial
sector with financial institutions among the leading ones in the world. This
makes for easy accumulation and transfer of capital for investment
In conclusion therefore, The Hong Kong economy underwent

industrialization with the development of a textile industry in the 1950s. By
the 1960s, manufacturing in the British colony had expanded and diversified
to include clothing, electronics, and plastics for export orientation; Focus on
exports ; Human capital development
; Abundant and cheap Labour Existence of an adequately developed financial
system; Uganda needs to adopt an adequately developed capital market
which could ensure adequate mobilization of capital for industrial and
economic development; Developing an appetite for savings ; High saving
rate will increase the rate of capital formation. This should be done by
private institutions and government instead of spending prestigious non-
productive project.; Development of export industries and promotion of
certain basic industries that produce competitive goods for the world market.
Co-operation in many areas of development has created economies of scale
in production and increased the level of investment which can help
developing countries like Uganda; A well developed financial sector: Europe
has a well developed financial sector with financial institutions among the
leading ones in the world. This makes for easy accumulation and transfer of
capital for investment
References
"Can Africa really learn from Korea?". Afrol News. 24 November

2008. Archived from the original on 16 December 2008. Retrieved 16
February 2009.
Korean Culture and Information Service. 1 March 2008. Archived from the

original on 22 April 2009. Retrieved 16 February 2009.
Leea, Jinyong; LaPlacab, Peter; Rassekh, Farhad (2 September 2008).

"Korean economic growth and marketing practice progress: A role model for
economic growth of developing countries". Industrial Marketing
Management. 37 (7): 753–757. doi:10.1016/j.indmarman.2008.09.002.
Derek Gregory; Ron Johnston; Geraldine Pratt; Michael J. Watts; Sarah

Whatmore, eds. (2009). "Asian Miracle/tigers". The Dictionary of Human
Geography (5th ed.). Malden, MA: Blackwell. p. 38. ISBN 978-1-4051-
3287-9.
Rodrik, Dani (1 April 1997). "The 'paradoxes' of the successful

state". European Economic Review. 41 (3–5): 411–
442. doi:10.1016/S0014-2921(97)00012-3. ISSN 0014-2921.
Chang, Ha-Joon (2006). The East Asian Development

Experience. ISBN 9781842771419.
Data for "Real GDP at Constant National Prices" and "Population"

from Economic Research at the Federal Reserve Bank of St.
Louis Archived 3 October 2019 at the Wayback Machine.

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COLLEGE OF ECONOMICS AND MANAGEMENT

NAME : AMAGORO WINNY

REG NO. : 1174-05014-14266

COURSE : BBA-FINANCE AND ACCOUNTING

COURSE UNIT : INTERNATIONAL TRADE THEORY

LECTURER : DR. KIWEEWA EMMANUEL

The Hong Kong economy underwent industrialization with the development

Human capital development

Abundant and cheap Labour

Managing and controlling imports and exports

People centered Leadership

Developing an appetite for savings

Massive investments in manufacturing industries with reduced reliance on

Massive investment in education and human capital development.

Agrarian and industrial revolutions in Britain led to discoveries and

A well developed financial sector:

In conclusion therefore, The Hong Kong economy underwent

"Can Africa really learn from Korea?". Afrol News. 24 November

Korean Culture and Information Service. 1 March 2008. Archived from the

Leea, Jinyong; LaPlacab, Peter; Rassekh, Farhad (2 September 2008).

Derek Gregory; Ron Johnston; Geraldine Pratt; Michael J. Watts; Sarah

Rodrik, Dani (1 April 1997). "The 'paradoxes' of the successful

Chang, Ha-Joon (2006). The East Asian Development

Data for "Real GDP at Constant National Prices" and "Population"

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