Economies of Asia

Economy of India • Since independence (1947), struggle to

modernize & diversify the economy– Strongly agricultural– Very poor

• 1940’s-1990’s: command economy• Encouraged private involvement, creating a

mixed economy• Problems with uneven distribution of wealth

& child labor

• Grow cotton, tea, rice & sugar• Fishing important in some regions• Leading producer of coal & iron• Uses coal for energy; must import oil• Growing computer service industry• Money: rupee

Economy of China

• Since 1949, a command economy– Controlled jobs, homes, food, clothing,

transportation– Farms run by a community– Launched Five Year Plans to improve the

economy– Work toward independence– Major environmental consequences

• In 1979: began modernizing & expanding – Led to world’s fastest growth– Inflation, unemployment problems– More individual responsibility for production &

income

• 1992: government set up a free market economy, but under heavy regulation

• Open to tourism since 1979

• Manufacturing & mining bring in most money– Steel, textiles

• Able to grow enough grain to feed the population

• Irrigation & fertilizer allows 2-3 crops to grow on one plot in a year

• $30 billion trade surplus– Export clothing, soybeans & tea

• 44% of population works in agriculture & fishing

• Over 100 million workers belong to unions• Many goods shipped on China’s rivers• Media heavily monitored by the

government, which provides the news• money: yuan (7= 1 USD)

– Government controls the banks

World’s leading producer of…

• Electricity (and biggest consumer)• Textiles (cotton, silk, linen)• Rice • Cotton

Economy of Japan

• Rapid growth from 1950’s- 1970’s– Workers were educated & hard working– Companies offered good benefits– Consumers purchased a lot

• By 1968 Japan was the world’s 3rd biggest economy– 2nd today

• Internationally competitive high tech industries (cars, TV's)

North Korean Economy• After the war, Korea was very dependent on

Russia and China for economic aid• When that aid stopped, the economy

weakened– Famine and malnutrition

• Today, the government passed new laws to mend the economy– Rewards for production

South Korean Economy• Rapid industrialization and growth until 1997• In 1997, the economy collapsed

– Accepted international aid– reformed and restructured the economy

• Today, the economy is growing

• Produces cars, electronics and sea food

Vietnam’s economy• An agricultural economy• The government controls much of the

economy• Outdated airplanes and trucks• Trade deficit: imports more than it exports

Economic

Systems

PureMarket

PureCommand Mixed Economy

1000

North Korea 2%

India56%

Japan73%

China 53%