Economic Development in East Asia Essay Example | Topics and Well Written Essays - 2250 words

Economic Development in East Asia - Essay Example Many countries started the modern economic growth post Second World War while some other countries chose to start them according to their preference. The biggest developer Japan decided to use the modern economy from 1985, where as china implemented it from 1980s. It followed the economy policy and preferred market economies over central economy. From then it has been a growing stage for each country as well as the East Asia as a whole. Globalization created so much impact on all the countries and only some could withstand the era of Globalization. East Asian countries did not face this problem. They were strong enough to accept and change towards globalization, and from then there has been a continuous growth in all the countries. As politics played a major role in the development of a country, many countries could not improve their economic standard immediately. They had to cooperate with the government and abide by their rules and regulations. The growth and development was seen in starting up new industries and inventing new things.(Nabende 2003). Import and Export underwent a transformation. Countries like Japan and China started to manufacture their own products instead of importing them from other foreign countries. This in turn resulted in exporting goods manufactured by them to the other countries. Manufacturing companies started to produce textiles, technological products and other industrial and home appliances. The shares of each country were based on their development and some of them had a tough time due to the massive improvement of China and Japan. (Sycip 1996).There was also a growth on the education and employment, which gradually improved the economy. After some years, the government started providing monetary support to the countries, which made the development easier. The trade and its market started to improve; import and export decided a countries role to develop other nations. Though East Asian countries were experiencing growth, in the 1980s there was a setback which the countries found it difficult to cope up with. Some of them reported zero growth and import and export were affected. This condition improved after years of struggle and fight. Japan was leading in the development stage and it faced a severe competition with the improvement of United States. The value of dollar and Yen kept in fluctuating. There was a tough competition between them. Financial Crisis Financial crisis disturbed and turned down the improvement of almost all the countries in the world. East Asian countries were the worst hit by the financial crisis. There was a drop in their currency value too. (Greenwood 2005).The U.S dollar continued to dominate and countries like Japan and China had their currencies floating. The recovery from this crisis took some time and improvement seemed to be tough. Due to this crisis, trading operations totally came to a halt. Countries with good economies could manage, where as smaller countries started to suffer. Investment went down and they found it difficult to tide over the situation. But then after sometime the countries started to recover and the recovery was rather a shock to the other countries. With the help of the government, countries gained financial support and their trading, import, export and investment seemed to improve. Trade assignments between the East Asian countr