Introduction to Asian Cultures - Report Example

Modernity in Asia: Economic Development in Asia depends on Strong State Intervention Name Institution Date Introduction to Asian Cultures Question 1 Economic development in India and Vietnam depend on strong state intervention The Asian culture is a beautiful heritage comprised of many different nations, ethnic groups, religious practices, languages, and foods and arts. Some of the Asian groups include the Hindu, the Koreans, the Japanese and the Philippines among others. They live within and outside their border countries because the growing freedom of movement and search for employment opportunities. Within their own borders they strive to grow and develop their economies but they are also faced with a number of challenges that their respective governments ought to handle 1(University of Texas, 2012 p.1). INDIA Factors that have influenced growth and development in the Indian economy According to Athukorala (2012 pp. 157-8), the economic sector in India has grown tremendously in the recent couple of years, however, there is still a large room for more growth and development in the country2. The economic growth of India has helped improve the standards of living of more than 200 million people reducing the poverty level from half of the population to almost a fifth of their citizens no living below the poverty line. The growth was attributed to liberalization of resources and amendments of some policies. Another factor is the subsidies on petroleum and it’s by products with the intent of helping the poor. The strict policies that prevented foreign investors from investing are slowly being liberated to allow inflow of capital into the economy 3 (NDTV Profits, 2013 p.1). India operates a market led economy which has highly contributed to its growth. There are some states that have even taken the initiative of changing its administration models to create an attractive social setting for investors with a lean administration, encouraging formal education to promote literacy and improving living standards so as to improve the life expectancy ratio. India is a country endowed with fertile lands, a tropical climate that is favorable for agricultural practices and most importantly it has a large population that provides ready market for their goods and services. These factors have also helped in the growth and development of the Indian economy4 (Glewwe & Jacoby, 2004 pp.45-7). Challenges in further growth and development of the Indian economy The growth and development in India is also not short of challenges from the government. Job creation in India has been more effective in the informal sector than in the formal sector, this is because of the many labor laws that are practically chocking the manufacturing sector from developing. Another challenge facing the growth and development of the Indian economy is the heavy regulation in some sectors of the government. Glewwe and Jacoby (2004 p.48) point out that the government of India still has many restrictions in areas like labor, land, education, telecommunication and the transport system. It practically is the only player in those sectors with minimum to no foreign and domestic investors. After being colonized by the British, some lands had landlords while others were given directly to the farmers and developers. Lands that are under landlords are the most difficult to obtain and especially lands that have adequate roads and power. These are the most productive lands for investors especially in the agricultural and manufacturing sectors. Another worrying trend that is visible in India and that is capable of paralyzing growth is inequality and corruption. India has very big gap that exists between the rich and the poor. There’s also a worrying trend of gender inequality in the country due to their cultural practices that have women locked up doing housework and becoming fully dependant on their husbands. The gap between the rich and the poor is too large and sadly the rich are becoming richer while the poor even more poorer. This means the country has poor policies on distribution of resources. As a colony the British failed to establish an extensive plantation economy in India but instead focused on establishing private property laws that would enable them collect more taxes from peasant farmers. The practice of large scale commercial plantations would have developed the country further and would have reduced cases of hunger and starvation in the country 5(Indianchild.com, 2000). Government’s possible intervention activities towards the growth and development of India’s economy The government could liberalize some sectors of the government to allow both foreign and local investors to invest and participate in their management. These sectors such as labor, transport, education and land among others need new and fresh ideas from other sources other than the ones who normally set up the policies. New ideas are likely to induce inventions and innovations that could drive the economy further ahead and extra capital from the investors will enable the government to take on projects left pending due to lack of funds. The labor laws in India are many and too strict that they discourage investors and eventually growth and development. India has 200 labor laws, they ought to be reduced and the strict laws to be eased down a notch. Although India has fertile lands, the quality of those lands is wanting because of the poor state of roads and lack of power. Manufacturers and developers need to set up factories that can easily be accessed and also enable transport of both raw materials and end product. Power is also a necessity for them as they need it to run and operate their machinery. Corruption is a major enemy of development, if not handled well it is capable of paralyzing the country. The government should fire corrupt government officers and establish strict policies against corruption. Gender inequality is a thing if the past. The government should start projects that will help women take up their rightful position in helping the country grow and develop, this can be done directing funds to women self help groups especially those based in rural areas. There is also the large gap between the rich and the poor which can be reduced by equal distribution of resources and policies that encourage equality among its people in terms of resources and opportunities. The government of India has the potential of having an economy bigger and more influential than China. After rapid growths in India the government became complacent and hoping that the economy will fix itself, this was not to be the case since there are many challenges that require the intervention of the government for it to grow and develop to their desired level(Anil & Clement, 2005 pp.82-3)6. VIETNAM Factors that have enabled growth and development in the Vietnamese economy After emerging from decades of war which almost brought the country’s development and infrastructure to ruins, the Vietnam economy has developed beyond the expectations of many people and countries. With a government that is full of optimism and drive to achieve and succeed, Vietnam is sure to grow into one of the world’s power houses7 (Anil & Clement, 2005 pp. 95-6). The government implemented the Enterprise Law in the year 2000 and that has seen a great rise in formal private firms which was barely the case before the enterprise law was passed. Before that there was only a handful of private firms but with the passing of the Enterprise Law 2000 state owned firms only make up 40% of the entire number of firms which is a great improvement for the country. The Vietnam private sector has also flourished because of the support of associations such as The Asia Foundation which has helped the country in the promotion of international economic integration and also business development. Another organization that has helped to grow the country is The United States Agency for International Development (USAID). According to Ravallion and Chen (1997 p. 370), It has played many significant roles in the growth and sustainability of the country (Vietnam), the United States Department’s Bureau for Pacific Affairs, the World Bank and the Henry Luce Foundation among other private investors8. The government of Vietnam has also been working hard to increase employment in the country and with that an increase in per capita income thus a sharp decrease in poverty levels from over half the population living below poverty to barely a fifth to the population now living below poverty. Vietnam is a very densely populated nation which means it has an already available market for its products. Although it does export its products to various countries in the world the country has a good market for its products locally. The dense population also provides the necessary labor required for the production and manufacturing of goods and services in the country. The country has fertile lands that encourage agricultural activities such as planting food crops and rearing livestock. The country has also invested in improved education systems that will enable it to grow the number of semi skilled and skilled labor 9(The Asia Foundation, 2010 p.1). Challenges that have hindered the country from further development Although the private sector has developed a lot in the recent times, it has not been evenly spread out across the country. There are some areas that are more developed than others making development uneven in the country. The country has recently been investing more in the industrial sector and hence neglecting the agricultural sector. This is seen in the improvement of the industrial sector and a subsequent decline in the agricultural sector outcomes. More imports than exports are likely to hurt the country’s balance of payment by creating deficits. The deficits will force the country to borrow funds either locally or from international organizations. If locally it will end up reducing the amount of money supplied to the economy and drive people to use up their savings and investments to meet transactional needs thus push the economy backwards10 (Ahya & Xie, 2004 p. 59). There is also the issue of corruption. Corruption is the worst enemy to development of a country. Where the leaders misuse public funds for their own selfish benefits instead of using it for the development of the country will definitely take the economy backwards and not forward as people would wish. The decades of war in the country caused major damages to the infrastructure of the country. There are still trade restrictions in sectors such as education, software technology and the transport systems. These sectors should be opened up to both local and foreign investors to allow for funds to develop these sectors further as they are crucial to the economic development of the country. Investors are also likely to come up with ideas that will ensure continuous growth if they are allowed to participate in the management of the mentioned sectors. Foreign investors will bring in new ideas and know how that will also ensure the country can compete at international levels 11(Chan, S 2012). Inequality is also a challenge to the growth and development of the Vietnamese economy. There is a large gap between the rich and the very poor in Vietnam. Development has also not been spread equally across the 64 provinces of Vietnam with other provinces much more developed than others. This means that distribution of resources in Vietnam is not at fair levels across the country12 (Arrow, 1962 pp.160-2). Government’s intervention to ensure growth and development in Vietnam The government should put measures to ensure that development is even across the country. This can be achieved by ensuring equal distribution of resources to all provinces of Vietnam. Also the government can distribute factories into various parts of the country and not having the concentrated in one place. As much as the country would like to diversify if potentials it should not neglect the agricultural sector, in fact it should import machinery that will enhance agricultural productivity for exportation13 (Arrow, 1962 pp.164-5).. The government should do away with corrupt leaders who might end up bringing the country’s economic efforts down the drain14 (The Asia Foundation, 2010 p.2). They should be fired and punished severely for their misconducts. It should set up strict policies that warn the public officers and leaders against corruption in the country and indicate the consequences of such acts should they be proven15. Areas that have been marginalized should be identified and necessary measures put up to ensure they enjoy civilization and development as other areas of the country. They could also try to identify their strengths and exploit them such as tourist spots, minerals in the area and natural conservation areas among others. Trade restrictions should be revised and lifted to allow investors to come and contribute to their growth and development. The world has become a global village and therefore we should encourage international relations by encouraging foreign investors to come and bring funds and share their ideas and know how. Infrastructure should be improved to make transport of goods and services easier for traders and investors (Wan, Lu, & Chen, 2004 p.7). Conclusion There are other Asian countries that face similar challenges and strengths as India and Vietnam. Some of the government interventions will help develop them even further while some issues may require international intervention such as insecurity (civil wars and terrorism). Other issues such as natural disasters (floods, landslides, tsunamis, earthquakes and fires among others) require the governments to set up preventive measures to minimize the losses as not much of human intervention can help. Bibliography Anil K. Lal and Ronald W. Clement, 2005. Asia-Pacific Journal, Economic Development in India: The Role of Individual Enterprise. Vol. 12, no.2, pp 81-97. Ravallion, M. & Chen S. (1997) ‘What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?’ World Bank Economic Review, 11(2): 357-82 Indianchild.com, 2000, Economic Development in India, India's economic progress, achievements. Retrieved on 24th October, 2013 from < http://www.indianchild.com/economic_development_in_india.htm > Ahya, C. & Xie, A. (2004). The New Tigers of Asia. India and China: A special Economic Analysis. Morgan Stanley, July 26, 2004, 59p. Arrow, K. (1962), The economic implications of learning by doing. The Review of Economic Studies, Vol. 29, No. 3, pp. 155-173. NDTV Profits, 2013. Why the Indian Economy is primed to boom now. Retrieved on 24th October, 2013 from www.profit.ndtv.com/news/economy/articl... Chan, S.2012. Vietnam’s economic development: Policies, challenges and prospects for the future. Retrieved on 31st October, 2013 from < http://www.voxeu.org/article/macroeconomic-stability-vietnam> The Asia Foundation, 2010, Vietnam. Retrieved on 24th October, 2013 from < http://asiafoundation.org/resources/pdfs/Vietnam.pdf> Glewwe, P & Jacoby, H. G. (2004), ‘Economic growth and the demand for education: is there a wealth effect?’, Journal of Development Economics, Vol. 74, pp. 33-51 University of Texas, 2012, Asian Studies. Retrieved on 24th October, 2013 from www.utexas.edu/../acl-ba.php USAID from the American People, 2013, Economic Growth and Trade. Retrieved on 24th October, 2013 from < http://www.usaid.gov/vietnam/economic-growth-and-trade > Athukorala, P 2012, “Asian trade Flows: trends, Patterns and Prospects.” Japan and the World Economy 24: 150–62. Wan, G., Lu, M. and Chen, Z. (2004), Globalization and regional income inequality: evidence from within China. Discussion Paper No. 2004/10, United Nations University, World Institute for Development Economics Research. Read More

Another challenge facing the growth and development of the Indian economy is the heavy regulation in some sectors of the government. Glewwe and Jacoby (2004 p.48) point out that the government of India still has many restrictions in areas like labor, land, education, telecommunication and the transport system. It practically is the only player in those sectors with minimum to no foreign and domestic investors. After being colonized by the British, some lands had landlords while others were given directly to the farmers and developers.

Lands that are under landlords are the most difficult to obtain and especially lands that have adequate roads and power. These are the most productive lands for investors especially in the agricultural and manufacturing sectors. Another worrying trend that is visible in India and that is capable of paralyzing growth is inequality and corruption. India has very big gap that exists between the rich and the poor. There’s also a worrying trend of gender inequality in the country due to their cultural practices that have women locked up doing housework and becoming fully dependant on their husbands.

The gap between the rich and the poor is too large and sadly the rich are becoming richer while the poor even more poorer. This means the country has poor policies on distribution of resources. As a colony the British failed to establish an extensive plantation economy in India but instead focused on establishing private property laws that would enable them collect more taxes from peasant farmers. The practice of large scale commercial plantations would have developed the country further and would have reduced cases of hunger and starvation in the country 5(Indianchild.com, 2000).

Government’s possible intervention activities towards the growth and development of India’s economy The government could liberalize some sectors of the government to allow both foreign and local investors to invest and participate in their management. These sectors such as labor, transport, education and land among others need new and fresh ideas from other sources other than the ones who normally set up the policies. New ideas are likely to induce inventions and innovations that could drive the economy further ahead and extra capital from the investors will enable the government to take on projects left pending due to lack of funds.

The labor laws in India are many and too strict that they discourage investors and eventually growth and development. India has 200 labor laws, they ought to be reduced and the strict laws to be eased down a notch. Although India has fertile lands, the quality of those lands is wanting because of the poor state of roads and lack of power. Manufacturers and developers need to set up factories that can easily be accessed and also enable transport of both raw materials and end product. Power is also a necessity for them as they need it to run and operate their machinery.

Corruption is a major enemy of development, if not handled well it is capable of paralyzing the country. The government should fire corrupt government officers and establish strict policies against corruption. Gender inequality is a thing if the past. The government should start projects that will help women take up their rightful position in helping the country grow and develop, this can be done directing funds to women self help groups especially those based in rural areas. There is also the large gap between the rich and the poor which can be reduced by equal distribution of resources and policies that encourage equality among its people in terms of resources and opportunities.

The government of India has the potential of having an economy bigger and more influential than China. After rapid growths in India the government became complacent and hoping that the economy will fix itself, this was not to be the case since there are many challenges that require the intervention of the government for it to grow and develop to their desired level(Anil & Clement, 2005 pp.82-3)6.

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