Second generation Tiger economies - Malaysia, Thailand, Philippines, Indonesia
They all have high GDP per capita growth rates and high manufacturing output.
Causes of growth:
- Comparative advantage
- Development of low skill/ labour intensive industry
- Command capitalism
- Electronics industry promotion law
- Suppression of grain prices
- Attraction of FDI - Cheap labour, increasing domestic demand, non-unionisation, proximity to China, export production zones.
- High gross domestic savings
- Increasing value of products
Disadvantages:
- Exploitation of women
- Child labour
- Erosion of national identity
- Deforestation
- Consumption of energy resources
- Pollution
- Loss of agricultural land
- Poor quality water supplies
- Poor infrastructure
- Loss of favourable trade agreements
- Over reliance in imported R&D
Advantages:
- Fall in poverty
- Rapid infrastructure improvement
- Gain foreign currency
- Growth of Asian TNCs
- Provides employment
- Less imports needed
Case study - Malayisa
1. Labour – Malaysia had cheap labour in abundance in the 1970s and fulfilled consumer demand in richer MEDCs
2. Transport – Malaysia had major ports such as Georgetown on Penang, this helped with trade
3. Education – Malaysia has and had a well-educated workforce
4. Government and politics – the country was governed by strong leaders including Dr Mahathir Mohamad who ruled from 1981 to 2003 who oversaw economic growth and increased prosperity for the people of Malaysia.
5. Industrial policy – Malaysia allowed foreign companies to come in and invest, then strongly promoting the development of locally owned industries through protection and laws to give these home-grown industries privileges compared with foreign investors.
6. Growth poles - manufacturing was concentrated in growth poles in Malaysia. Domestic goods such as food and drink and household goods are located in and around the capital city, Kuala Lumpur, which has an inland location. The export-orientated growth industries, mainly electronics but also including electrical goods, machinery, equipment and textile industries, are concentrated south of Georgetown along the eastern side of the island of Penang, close to the port and the road bridge connecting Penang to the mainland and international airport.
7. Development of TNCs – Malaysia has its own car manufacturer, Proton, which sells cars to every continent
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