Development in the Asian Region Part 3

Second, government gives its support to firms according to their success in world markets. There is no possibility of supporting loss-making firms and of benefiting well-connected rent-seekers.

Third, free entry subsidies for imports provide inputs to the export sector. It opened the import sector significantly, and avoided any trade barriers. As the export sector broadened, the quantity of imported goods also increased. As a result GDP ratios in East Asian economies increased to much higher levels than in Latin America (Krueger, 1999).

In addition to afore-said strategies and policies it is necessary to distinguish some tendencies that can have influence on the new "Asiatic world". J. Naisbitt published his book "Asiatic megatrends", where he declared that economic, political and cultural center of world would relocate to Asia. John Naisbitt speaks about the following trends (J. Naisbitt 1996):

1. Sunset of idea of the national state and appearance of "ethnic network" conception. Japan already ceased to prevail in the world economic system, and the "Chinese network" assumes its role. But it doesn’t concern the concrete state, but the association of ethnic Chinese, lived both in Asia and beyond its limits.

2. The transition from the economy based on the export to the economy developing due to growth of consumption. Internal demand of middle class excludes the export.

3. This trend will show up in prevailing of the Asiatic model of "guardian's state", that is more viable and modernized than western one.

4. This trend consist in fading of state intervention, development of market economy, and also in regional collaboration of the states located in the district of the Pacific ocean.

5. It includes the lowering of role of rural locality in combination with simultaneous urbanization, development of information societies and universal computerizing.

6. The trend can be regarded as "civilized jump". It means quick transition from agriculture to labour intensive production, and then to modern industrial technology.

7. Shows up in "asiasation" of world. The expansion of technologies will coexist with the Asiatic culture and public organization.

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