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 3 rd biggest economy –2 nd 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Vietnam’s economy An agricultural economy The government controls much of the economy Outdated airplanes and trucks Trade deficit: imports more than it exports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 Pure Market Pure Command North Korea 2% India 56% Japan 73% China 53%