Impacts of Globalization on Asian Developing Economies

Impacts of Globalization on Asian Developing Economies

Developing countries in Asia come after the influence of Taiwan and South Korea to economic growth. The “developmental state model” has extended over a large area of Southeast Asia and China with some changes made. Even though it is labeled that these Asian countries have the same strong authoritarian system like Taiwan and Korea, it is seldom known that the outward circumstance they experienced in the 1990s was not similar from 1960s.

The most important major change ten years ago was globalization which gave extreme influence on the policies of nation, financial status and the development of economic institution. As a result, the action and process of the growth of state model for the second line NICs (newly industrializing countries are issues to different outcome caused by globalization.

During the year 1997, when Asia experienced a financial difficulty, it became an opportunity to take another assessment to the model of the state’s development. The financial crisis serves as attest of globalization to the model and the various effect of financial instability on East Asian developing countries emphasize that the globalization might give them different challenges and the cause of different outcomes, given that they all acquire the developmental state model.

As an advance messenger of industrialization, the challenges that Taiwan and Korea encountered in coping with globalization may serve as a lesson learned for other developing countries in Asia.

W.Chao