Tiger economies are those countries that have exhibited high levels of economic growth over an extended period of time. This growth is typically driven by exports and investment, and is often accompanied by rapid improvements in living standards. The term “Tiger economy” was first used to describe the economies of East Asia in the late 1990s, and has since been applied to a number of other countries, including Chile, India, and Mexico.
In the past decade, Southeast Asian tiger economies have been a hotbed for FDI. These countries enjoy a variety of qualities that make them attractive FDI destinations, including a large domestic market, developing infrastructure, and superior export logistics. However, despite these positives, these economies fall short of yesterday’s high economic growth rates, presaging a slowdown. As of Feb. 11, 2020, Thailand had the best economic growth rate of the group, riding its booming export and tourism sectors to higher growth. Malaysia, however, has been a clear laggard in the region.
The four Asian tiger economies all share a high level of education and a growing standard of living. Hong Kong, for example, has become an important financial center for the region and consistently ranks among the top 10 largest stock markets. Taiwan, with its population of 23 million, is a modern economy that exports of electronics and computers. It is also home to the largest manufacturer of Apple, which exports over $40 billion in vehicles annually.
Market-oriented economic policies
The success of the Tiger economies in the 1960s and 1990s can be emulated only if a country has a development regime that is conducive to market-oriented economic policies. The Tigers’ development regimes are closely related to the development regimes of the Asian tigers, four East Asian countries that underwent rapid industrialisation and sustained high growth rates. The lessons of the Tiger economies can be applied to contemporary development.
One of the primary differences between these four Tiger economies is their high savings rates. East Asian countries, especially China, often saved one-third of their GDP, compared to one-fifth in many Latin American and African countries. This higher saving rate was harnessed for domestic investment, allowing them to construct physical capital in their cities. At the same time, these economies made massive investments in human capital, encouraging a high level of education, including science and mathematics. These skills are important in business and engineering, but are also beneficial to the economy.
The rapid industrialization of the Tiger economies was driven by strong central states. These states had developed long-term plans for development and successfully guided ISI to the establishment of advanced industries. These governments also implemented these plans with the help of policy instruments and continued to adapt them to overcome challenges. As a result, these Tiger economies enjoyed a more competitive environment and developed advanced industries more quickly than their counterparts. This pattern has many lessons for today’s developing countries.
After the Second World War, the tiger economies of Taiwan, Korea, and South Korea began their industrialization programs. These countries followed a similar model of export-oriented development that included building large industrial estates and offering major tax incentives to foreign investors. These countries also implemented compulsory education programs for young people to secure a future workforce. With their advanced infrastructure, the tiger economies were able to export everything from textiles to toys and plastics to personal technology.
The proportion of saving in Tiger economies is set to increase over the next three decades. In contrast to industrial countries, where saving rates tend to decline with age, tigers are set to enjoy a high starting saving rate and will likely continue to do so in the future. Two factors are expected to affect the level of savings in tigers: the aging of the population and the development of social insurance systems. The first, which is more developed, is likely to reduce public saving rates in the tiger economies. The second, which is less developed, is likely to have the least negative impact on saving rates.
While there are many factors that may affect the fiscal situation in ageing populations, two main scenarios have been considered in this article. In one scenario, the budgetary implications of an aging population are examined by focusing on changes in key age groups in the population. In the other, the changes in social sectors and the costs of care are included. One scenario incorporates plausible policy changes and the cost pressures from the medical sector. However, both scenarios have similar outcomes, although the first is less likely to lead to any significant fiscal changes in the tiger economies.
While the West has grappled with problems such as inequality, ageing populations, and technology, the Tigers are facing new ones. These challenges require novel approaches to solve them. For instance, in many industries, tigers have reached the technological frontier. They are no longer catching up with global best practices. Consequently, they are struggling to expand their exports. But this is only one of the challenges tiger economies face.
In 2022, the US-China relationship will remain the top geopolitical dynamic. Both governments will prioritize domestic issues, including the 20th National Party Congress of China, the Winter Olympics in Beijing, and the US mid-term elections. But, despite these challenges, escalating competition among great powers will dominate the geopolitical landscape in the coming years. For the Tiger economies, this trend will continue to make life challenging for both developed and emerging economies.
In conclusion, Tiger economies are those that have experienced rapid economic growth and development. This is typically characterized by a shift from agriculture to industry and services, as well as increased foreign investment and trade. While there are many benefits to Tiger economies, there are also some potential risks. It is important to be aware of these risks and take measures to mitigate them so that the economy can continue to grow and thrive.