Industry In The Developing World NIC’s: South Korea

NIC’s There are a number of countries around the world that can be accurately described as Newly Industrialised Countries (NIC's). They all share the same characteristics, and one of the best examples is South Korea. South Korea is one of the countries in south- east Asia described as being part of the Tiger Economies.

NIC Characteristics An increasing exporter to the world market, usually by copying existing products and then re-producing them for a much cheaper price. Rapid growth in the manufacturing sector, which results in far more exports and a rapidly rising GDP.

3 Stages There are three stages to the development of an NIC, from its traditional society to a developed world society. The time frame for the whole process can be as little as 30 years.

Traditional Society Most industry is labour intensive, concentrating on small cottage-style traditional industries, using local raw materials. Examples could include food processing or textile manufacture. Often, the majority of people are still in the primary sector, doing things such as farming. There is little technology and most people have very little money. Most products are imported from abroad, meaning that the country is relying on other for many of its needs.

Import Substitution Industries The country decides to promote its own industries. New companies copy products from well-known companies, and then make them for a far cheaper price. The country operates a strict regime of trade tariffs and high taxes for any similar products being imported into the country. This is aimed at protecting their own companies whilst they grow. Example industries are car manufacture, computer manufacture and the manufacture of other electrical goods, such as hi-fi's.

Export Orientated Industries Once the new companies have become established in their own country they are unleashed upon the world market. These industries are now capital intensive, using high technology and aimed at making a big profit. The GDP of the country starts to rocket, often growing at well over 5% per year, which is an amazing rate. The country is now described as being an NIC.