Economic Growth

Economic Growth of Hong Kong & Singapore

AIU

Damia Bass

“A newly industrialized country, or NIC, is one that has fallen somewhere on the economic measurement scale between developing and first world countries.” These nations have strayed from a usually agricultural based market to a more modernized market. In the 1970’s and 1980’s Singapore and Hong Kong made this true (Investopedia, 2011). These nations are even developing presently, and there are many approaches they can facilitate to strengthen their position within the global economy. “In an effort to help encourage growth and stabilization within the Hong Kong and Singapore regions, the aid of the World Bank has been enlisted.”

The purpose of the World Bank is "to help developing countries and their people reach the goals by working with our partners to alleviate poverty." By centering on six specific ideas used by the World Bank to support their mission "...the Bank delivers technical, financial and other assistance to those most in need and where it can have the greatest impact and promote growth. These themes are focusing efforts on the poorest countries, post-conflict and fragile states, middle-income countries, global public goods, the Arab world, and knowledge and learning. (WorldBank, 2011) The key to successful economic development is to implement strategies that include "a market economy, a high saving rate, and investment in infrastructure and in human capital" (Rittenberg, & Tregarthen, 2009).

Since Hong Kong and Singapore became NIC’s in the 70’s and 80’s it quickly became one of the first priorities in an NIC. To have a stable market there needs to be a “division of labor” set in place for the “prices of goods and services are determined in a free price system set by supply and demand" (Altvater, 1993). In order to do this one must “bring about industrial stability by dismantling the Communist party and fostering discipline in employer-employee relations, to attract...