Question

Compare and contrast the characteristics of economic growth in the High-Performance Asian Economies (HPAE) with the characteristics in Latin America. (Please write more than one page on word font 12.)

Answer 1

The Economic growth of the emerging state in Latin America has been lower than that of their Asian counterparts . The observable cause of the difference in performance is the former's heavy dependence on the production and processing of natural resources, delay in industrial and technological up-gradation.

However deeper causes can be found in the political economies of these Latin american countries: weak societal trust, public administration of average quality and low investment in industrial and technological upgrading.

Both Asia and Latin America are big places with enormous internal diversity. Economic performances in these regions have also varied over time. And yet, depending on the level of abstraction, the two regions can also be viewed as typifying alternate developmental pathways. While growth and inequality are not the only desirable components of development, they are core values especially because rapid growth with modest inequalities helps the poor. If it is compared to Latin America, Asian Economies have grown faster and have done so with relatively modest inequalities.

The roots of why many economies in Asia are growing faster with more modest inequalities than in Latin America run deep. Asian countries have created economies with high domestic saving rates, careful channelling of foreign direct investment into priority areas, the significant capacity to export manufactured goods and limited foreign debts. By contrast, many countries in Latin America remain more dependent on global economy, with lower domestic saving rates, a smaller role for the national capital, higher dependence on foreign capital to supplement limited mobilization of domestic resources, export focussed on lower value-added commodities and high foreign debt.

To conclude,the more nationalist version of the capitalist models of development seems to be serving the need of citizenery in those countries better by generating higher rates of economic growth and limiting the worst form of inequality.