Ease of Doing Business in the Asian Tiger Economies

A Better Look

Asia, the world's largest and most diverse continent, is home to world-class technology hubs, cutting-edge infrastructure, and densely populated emerging markets.Asia has experienced a rapid technological boom over the last three decades, with GDP growth in many of the continent's economies outpacing that of Western markets.As a result, expanding into Asia has become a key target for businesses looking to expand their global presence.According to the World Economic Forum, Asia's GDP now exceeds that of the rest of the world combined. By 2030, Asia is expected to contribute roughly 60% of global growth, and many business leaders around the world see Asia as a logical expansion destination due to its sustained economic growth and stability, which is also setting standards for competitors.

A Quick Overview on Asia-Pacific Competitive Landscape

Investors have recognised the opportunities for business development in Asian countries such as China, Singapore, Malaysia, India, and Hong Kong.This appears to be a continuous positive correlation due to their rapidly expanding economies, which continue to stimulate growth in various business sectors.The Asia-Pacific competitiveness landscape continues to be one of stark contrasts.According to the World Economic Forum's Global Competitiveness Report 2014-15, the region is home to the world's top ten most competitive economies, with another three ranking in the top twenty.On the other end of the regional spectrum, five countries rank below 100 in this study of 144 economies.The Asian Tigers continue to outperform, according to the report's Global Competitiveness Index (GCI) that have high-growth economies that have transitioned from agrarian societies in the 1960s to industrialised nations.Each country's economic growth is typically export-led, but with sophisticated financial and trading markets. Along with the Asian tigers, the "Asian cub" economies have experienced rapid growth over the last few years.Indonesia, Malaysia, Thailand, Vietnam, and the Philippines are among the Asian cubs.

Recognizing Tiger Economies

The Asian tiger economies grew significantly between the late 1980s and the early- to mid-1990s, thanks to large amounts of foreign investment.In 1997 and 1998, the countries experienced a financial crisis, which was caused in part by high debt servicing costs and an unequal distribution of wealth.The majority of these nations' wealth remained in the hands of a small group of people. Tiger economies have recovered relatively well since the late 1990s and are major exporters of goods such as technology and electronics and arre likely to grow in the coming years.

Birth Of Asian Tigers

The global economy was just beginning to recover from the traumas of world war 2 and the Korean War of 1950-1953 in the early 1960s.Tentative world peace, combined with significant advances in air travel and telecommunications, meant that borders were opening up all over the world, and the four 'tigers' were well positioned to benefit.All four countries had long-established ports and developed trade economies, as well as highly educated populations and solid postcolonial infrastructure. To secure the future of the workforce, the four 'tiger' governmentsused this opportunity to invest heavily in industrialization, constructing major industrial estates, offering tax breaks to foreign investors, and implementing compulsory education for their young populations.These countries quickly found themselves in high demand, exporting everything from textiles and toys to plastics and personal technology. The Four Asian Tigers were so strong that they were able to avoid the 1997 Asian Financial crisis and now they appear on the IMF's list of the world's most prosperous and stable economies on a regular basis, and each has developed its own highly successful niche.

Reasons for the Capital Formation

The primary reason for the Asian Tigers' rise in capitalism was their export policies.Singapore and Hong Kong, for example, implemented neoliberal trading regimes that encouraged free trade, whereas the other two countries took a different approach.Taiwan and South Korea, on the other hand, adopted hybrid regimes that were tailored to their export businesses.Due to the limited domestic markets in Singapore and Hong Kong, domestic and foreign prices were linked. All of the initiatives contributed to the countries achieving an average annual growth rate of 7.5 percent over three decades, allowing them to attain the status of developed countries.

How India can consider Venturing out into these Geographies

India must foster an environment that encourages globally competitive firms capable of driving and sustaining economic growth.The government's Ease of Doing Business initiative is critical to achieving and maintaining this favourable business environment. Many developed countries around the world, including the United States, United Kingdom, France, Germany, Japan, and South Korea, want to expand their business operations in India to the highest level.China is also investing heavily in the development of industrial parks in India in order to promote manufacturing.All of these are new international efforts by the international community to bring more development and strengthen ties with a resurgent India.Because of the above- mentioned developments and government actions, India has already surpassed the United States as the most attractive Foreign Direct Investment (FDI) destination in 2016, ensuring capital investments in six new industrial corridors and 100 smart cities planned around these corridors. This increased effort will soon transform the elephant into a tiger in the coming years.

India to roar as Asia’s Tiger

India has the potential to become the world's rising economic powerhouse, similar to how China is seen today.China is expected to remain the world's largest economic power, but the gap may begin to close by 2030. According to various reports, India's economic growth rate is picking up and will reach a peak in 2025.In comparison to other Asian countries, India's working-age population is unlikely to peak before 2050. To maintain this momentum, the government is putting a lot of emphasis on developing entrepreneurship and expanding the manufacturing industry by introducing schemes like 'Make in India' 'Startup India' by promoting bank financing for start-up ventures to boost entrepreneurship and encourage start-ups with job creation, and creating infrastructure for taking 'Digital India' to the next level.

How India can consider Venturing out into these Geographies

India must foster an environment that encourages globally competitive firms capable of driving and sustaining economic growth.The government's Ease of Doing Business initiative is critical to achieving and maintaining this favourable business environment. Many developed countries around the world, including the United States, United Kingdom, France, Germany, Japan, and South Korea, want to expand their business operations in India to the highest level.China is also investing heavily in the development of industrial parks in India in order to promote manufacturing.All of these are new international efforts by the international community to bring more development and strengthen ties with a resurgent India. Because of the aforementioned developments and government actions, India surpassed the United States as the most appealing Foreign Direct Investment destination in 2016, ensuring capital investments in six new industrial corridors and 100 smart cities planned around these corridors, which will not only increase productivity but also scalability.

What did we learn from the Four Asian Tigers?

Despite being one of the most popular markets for business expansion in the world, Asia has its own set of challenges.To be successful in the Asian market, businesses must conduct their due diligence before entering the market.Whatever the root cause it declines, a country must find practical solutions to the problems. One possible solution is to follow the progress of the Asian Tigers, which are heavily influenced by Confucius culture. By the early twenty-first century, all four had grown into high-income economies that specialised in areas of competitive advantage.

Final Thoughts

If Indians can instil this level of productivity among themselves, it will go a long way towards our country multifaceted development.People begin to respect each other's time, space, and efforts when they live in this manner.The goal should be to end up living in well-cared-for communities, working in places where people are always pragmatic, productive, and time conscious, and having high social capital among our people.It may appear to be a pipe dream at the moment, but by taking one step at a time, we can make our country a better place.