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The Rise of Manufacturing in NICs –
Asian Tigers
The Asian Tigers have experienced very rapid growth in GNP by developing a manufacturing sector.
They are success stories in spreading the benefits of economic growth. Generally this was through:
 Export growth behind tariff walls.
 The role of TNCs & foreign investment.
 The environmental costs.
The impact of American influence through foreign investment in the last 60 years is also very
important. In many ways they were just in the right place at the right time. They are all unique.
The 4 Asian Tigers are:
 South Korea
 Hong Kong
 Taiwan
 Singapore
South Korea
Hong Kong
Taiwan
Resources & types of
Industry

Limited agriculture
– mountainous

Limited Natural
Resources

Established
industries in
petrochemicals,
steel &
shipbuilding.

Outsells Japan in
Shipbuilding

No resources &
very limited
agricultural land.

Many refugees
from China were
entrepreneurs.

People have high
work ethic.

Very cheap
labour.

Textiles important
in development.

Many small firms,
mainly export.

Good natural
harbour.




Singapore



Rates of Growth
Roles of Government & Companies
Prospects & problems


Tariffs implemented to protect infant
industry.
Import substitution
Changes in government culture – less
dictatorial
Invested heavily in education
Foreign investment plays a massive role
in development
Development funded by the government.

Concentrated on textiles that would sell in
home markets where purchasing power is
low.
Infant industry protected by tariff
restrictions.
Virtually free trade
Invested heavily in education – strong
government.
Developed as part of British Empire.










Economic
growth +4.5%





Copper, coal, oil & 
gas limited.
Limited agriculture 
– mountainous.
Tinned food,
textiles &

machining
industry.
Invested heavily in
hi-tech – Science
parks.
No resources
Rely on
petrochemical &
oil industry.
Good natural
harbour.
Economic
growth +6.7%
Agriculture &
Primaries –76%
Services +510%
Secondary
+20%








Companies:

Less reliance on foreign investment

TNCs frequently present in association
with local firms

Increased links with other areas of the
economy e.g. oil for petrochemicals.

Development supported by governments.
Economic

Strong stable government

growth +6%

Taiwan promotes heavy industry,
Industry
petrochemicals
increased from 
Invest in education.
1962-1964


Some investment in hi-tech science
Agriculture
parks.
decreased

Government selects key export growth
industries & promoted them with financial
incentives.
Economic
growth +7.5%
No mass shift
from agriculture
to
manufacturing
as no farmland.





Education investment.
Strong, stable government.
Tariffs on imported goods.
Promoted key areas with financial
incentives.
Developed as part of the British Empire.




Becoming Developed
Country
Civil rights & wage
laws.
Competition from
developing countries
Danger of TNCs
pulling out.
Becoming Developed
Country
Civil rights & wage
laws.
Competition from
developing countries
Danger of TNCs
pulling out.
Taiwan is antiCommunist with
concerns over hardline policies in China.
Economic
development has
reached the stage
where its ability to
increase further
depends on its ability
for mass investment
& technology.
Becoming Developed
Country
Civil rights & wage
laws.
Competition from
developing countries
Danger of TNCs
pulling out.