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Emerging Markets in Asia
Over the past decade the world has witnessed rapid long-term economic growth for East Asian countries. These newly developing countries are experiencing growth rates in GDP between 6% and 7%, compared to the 2% to 3% for most industrial economies. If this growth continues, South Korea and Taiwan could take away America's distinction as the world's richest country. This rapid economic growth is a result of several economic and political factors. The current pace of economic growth, expanding trade and communications, and the investment in equipment and education have all played a role in the sudden rise of the East Asian economies.
One primary factor that has spurred the long-term economic growth of South Korea and Taiwan is the pace of economic development. The pace has accelerated over time. As time progresses, countries seem to be able to grow at a much more rapid rate. South Korea was able to double its real income per head in an amazing 11 years from 1966 to 1977. It would seem that the later a country has developed, the faster it has been able to do so. Another important factor is the degree to which a country is behind the industrial leaders. …
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