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A great burst of globalization brought the 20th century to a close, creating upheaval in the world economy from roughly 1995 to 2008. And now a second upheaval is in the offing following the severe financial crisis that plunged the global economy into recession in 2008-09. The first upheaval witnessed a massive migration of manufacturing and certain business services that transformed Asia into the industrial heartland of the world. The second upheaval will likely consolidate Asia's industrial preeminence and could result in a concentration of industrial activities in the two most populous and fastest-growing Asian economies -- China and India. As the two Asian giants become the industrial equals of the United States, Germany, and Japan, the ramifications will affect trade and growth worldwide, the future of development in China and India, and industrialization throughout Asia. This book examines these developments, focusing specifically on China and India. Its analysis and conclusions will be of particular interest to policy makers and academics, as well as anyone with an interest in how China and India are likely to reshape industry throughout Asia.
Industrial clusters in Silicon Valley, Hsinchu Park, and northern Italy, and in the vicinity of Cambridge, U.K., have captured the imagination of policymakers, researchers, city planners and business people. Where clusters take root, they can generate valuable spillovers, promote innovation, and create the critical industrial mass for sustained growth. For cities such as Kitakyushu, Japan, that are faced with the erosion of their traditional industrial base and are threatened by economic decline, creating a cluster that would reverse the downward trends is enormously attractive. Growing Industrial Clusters in Asia offers practical guidance on the nature of clusters and the likely efficacy of measures that could help build a cluster. It draws on the experience of both established dynamic clusters and newly emerging ones that show considerable promise. The insights that result from its analysis will be of particular interest to policy makers, urban planners, business people, and researchers.
Countries worldwide are struggling to imitate the industrial prowess of the East Asian pacesetters, but growth accelerations have proven remarkably transient. Building a portfolio of tradable goods and services and steadily raising the level of investment in these activities, has generally defied the best policy efforts - in particular, bringing investment ratios on par with East Asian averages has presented the greatest challenge. Hence the search is on for growth recipes not so tightly bound to investment, to manufacturing activities, and to the export of manufactured products. In casting around for such recipes validated by demonstrated results, the experience of economies which have relied more on other drivers of growth - human capital and knowledge - is highly attractive. Finland and Ireland are among the tiny band of small nations that grew rapidly for well over a decade by achieving the maximum mileage from an adequate investment in physical assets and by harnessing the potential of human capital and technologies. Singapore combined high investment with a comprehensive and complementary strategy of building high quality human and knowledge assets. This approach enabled the three countries to diversify much faster into higher tech manufactures and tradable services and profit from globalization. The approach adopted by these three countries may be of greater relevance in the highly competitive global environment of the early 21st century because it does not necessarily assume heroic levels of investment. Moreover, it may be better tailored to the opportunities for middle and lower middle income economies threatened by the middle income trap and seeking growth rates in the 6 percent range, and for the smaller, late starting, low income countries with youthful, rapidly increasing populations that need to grow at high single digit rates in order to create enough jobs and to double per capita incomes in 10 years.
Tiger Economies Under Threat: A Comparative Analysis of Malaysia's Industrial Prospects and Policy Optionsby Shahid Yusuf Kaoru Nabeshima
In recent years, growth rates in the so-called 'Tiger economies' of Southeast Asia have been above the average not only for developing countries but for the world as a whole. Yet they fall short of the economic growth experienced during 1975-95. The underlying worry for policy makers is that the decrease presages the beginning of a downward trend, a worry that has been sharpened by the global recession. But are the Tiger economies under threat? And if so, what are the causes and how can they be addressed? This book employs a comparative analysis of the Southeast Asian Tiger economies, centered on Malaysia, to tackle these questions. The findings presented will be of particular interest to policy makers, academics, business people, and researchers.
Beijing and Shanghai comprise the axes of China's two leading urban regions. Their economic fortunes will affect the overall growth of China. The economic composition of the two megacities differs significantly and the future sources of competitive advantage also lie in different areas although there is some overlap. Shanghai with its diverse industrial base is the industrial powerhouse of China. Its strongest growth prospects still lie in activities associated with manufacturing industry buttressed by improvements in the technological and innovation capabilities of domestic firms and supported by the deepening of business services. In contrast, Beijing's future prospects are more closely tied to research intensive activities and the services industry. This book explores the contrasting development options available to Beijing and Shanghai and proposes strategies for these cities based on their current and acquired capabilities, experience of other world cities, the emerging demand in the national market, and likely trends in global trade.
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