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Is There Any Thing Like Asian Business Model ?

2795 words - 11 pages

Introduction:East Asia's rapid economic growth and the crisis of 1997 have caught the world's attention. This rapid growth created big question in the minds of the other countries, Japan wanted to understand how the other Asian countries are able to sustain such a low rate of inflation and still sustain such high savings and productivity, so Japan went to the world bank as to hire them to find this out for them. The World Bank called this growth of the Asian economies as the Asian miracle. The phenomenal economic growth of East Asia, where most economies have followed in the footsteps of Japan over the last decade or two, is well known. Less well known is that such development has been achieved with equity distribution in the wealth, focus on exports and improve the human resources and to have a consensus between politics and business so as to increase the productivity in the economy!xrn_36_0_A16886625. Outsiders have pondered the success of East and South - East Asia what some call a miracle with wonder and admiration. Never before have countries expanded so fast for so long. From 1965 to 1990, the region's 23 economies grew faster than those of all other regions, and income inequality declined, sometimes dramatically. Most of this achievement can be attributed to the growth performance of eight economies: Japan; the "four tigers" they are Hong Kong, Korea, Singapore, and Taiwan; and the three newly industrializing economies of Southeast Asia Indonesia, Malaysia, and Thailand. Moreover, these eight economies share other characteristics that set them apart from other developing economies. As the Asian miracle has turned to meltdown, the critical question has become whether growth will resume. Based on research, considers the forces behind the East Asian growth miracle, the process of growth, the effect of saving, and the effect of foreign direct investment and multinationals. That rapid growth may resume in East Asia once the crisis has been resolved growth model followed by the Asian economies of that time included aspects of more rapid output and productivity growth in agriculture sector; higher rates of growth of manufactured exports, by following this growth model the share of their world exports of manufactures leaped from nine percent in 1965 to twenty one percent in 1990; higher growth rates of physical capital, they exceeded 20 percent of GDP on average between 1960 and 1990, supported by higher rates of domestic savings; higher initial levels and growth rates of human capital; and generally higher rates of productivity growth!xrn_38_0_A15266660. Below we will discuss one of the largest questions ever debated in the last 10 years, whether an Asian growth model exists to differ from European or American models. To support that we will...

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