Nowadays, many people fall into economic crises for a multitude many reasons. Russia and Ukraine’s war, the pandemic situation, and many other unfavorable factors. Many kinds of bad elements harm the economic situation of East Asia and the rest of the globe. However, the economic situations of the East and the West are not the same. They each fall into different kinds of economic crises. Today, I am going to look at East Asia’s economic recession and talk about how East Asia’s economy could increase shortly. Let’s look at three of East Asia’s biggest countries and the important economies of East Asia. Everyone usually thinks that East Asia includes China, Japan, North Korea, South Korea, and Mongolia. Before analyzing the topic, we have to know about the three countries’ economic characteristics.
The economy of East Asia
The economy of Japan is a kind of capitalist and free-market economy, and free-market, similar to most Western countries. It is the third-largest economy in the world and not just in East Asia. It has special products to compete with other countries, such as strong cars and electronics manufacturing industries. Also, Japan has very well-developed science. They have been awarded many kinds of Nobel prizes before, so maybe there is a correlation. There are so many developed economies, and their gross domestic products, which is simply called GDP, vary. Let’s analyze Japan’s GDP. It is composed of service sectors, a combination of industry, and agriculture. Service sectors occupy 73%; a combination of the industry is 26%, and agriculture occupies only 1% of the economy. The Japanese are included in many trade organizations. The most famous things are the Asia-Pacific Economic Cooperation, which is also called APEC, the World Trade Organization (WTO), the Organization for Economic Cooperation and Development, which is called, OECD, and finally G-20 and G-8.
Japan’s main products are cars, and this includes machinery items, such as semiconductors (for example, things that consist of microchips, elaborate fine parts, etc.), iron and steel products, as well as auto parts, and plastics. They also export to China and the United States and have significant imports to many other countries involved with South Korea. Japan’s main export products are oil, gas, clothes, coal, and semiconductors. They mostly import goods from the United States, Australia, Saudi Arabia, and China. The economy of China is more of a socialist market economy, and it involves a dominant and important state-owned sector, which operates the open-market economy. Despite criticism of socialist economies in the West, China has the world’s one of the largest economies. It is also the fastest-growing economy in the world.
In western economies, less than half of their GDP is based on the service sector, but the Chinese GDP is composed of service accounts, followed by industry, and agriculture. The service account is 48% and followed by industry at 43%, agriculture is 9%, and 3% of the industry is manufacturing. China is one of the biggest manufacturing economies in the world and is part of APEC, WTO, and the top G-20. China has a lot of valued exports to every nation in the world. China’s main export is machinery, electrical equipment, apparel, iron and steel, textiles, and medical equipment. This is exported to the United States, Hong Kong, Japan, South Korea, and more. China exports across the globe. China is important for the export market. Their main imports are machinery, optical and medical equipment, and plastic and chemical materials. They import from South Korea, Japan, Taiwan, Germany, the United States, and Australia.
South Korea has a mixed economic system. That means the public and private sectors are under government regulation. Like China, South Korea is a member of the Asia-Pacific Economic Cooperation (APEC). The country’s real GDP results from sustainable policies, which have significantly helped with their rapid economic growth and decreased poverty rates. The GDP of South Korea has averaged a 5.45% rate since 1988.
Taiwan uses a market system, where the market determines the prices of goods and services, and it’s limited by government intervention. Taiwan’s GDP reached $689.00 billion USD by the end of 2021 and is expected to reach the same GDP by end of 2022 too. It’s expected to reach $700.00 USD to $725.00 USD billion in 2023, which is based on various economic models. I’ll explain Mongolia and North Korea together. They are poorly performing countries in East Asia mainly due to their political climate. For instance, North Korea is led by a dictator, and many people are below poverty. North Korea can only export to fellow East Asian countries. Moreover, the largest part of its GDP comes from agriculture.
Political Economy in East Asia
The political development of East Asia has not received much attention since most countries are more focused on economic growth. Most governments use the economy as the central success measure. While China dominates Asia’s economy, each country still has its operating systems.
China is mostly politically aligned with Marxism and Leninism for the best economic performance, coupled with a sense of nationalism and good governance. They also believe that people meet their economic goals, and achieve material fulfillment and that they do not need to involve political economies. On the contrary, South Korea and Taiwan, which are democratic nations, believe the people and market all have a say in the country’s function.
Next, the Japanese economy is a free market, so they don’t have any limitations in their operation. However, uses administrative guidance such as other mechanisms and enhanced market competition. These Japanese practices contribute directly to the economies. For instance, labor markets, taxes, and competitive aspects.
North Korea and Mongolia seem to lie outside the East Asian political economies. They also struggled with economic stability, which caused their economies to decline or stagnate. From some perspectives, they have become marginalized nations in Asia, and it has caused a lack of political and economic growth.
Conclusion
In this writing, we talked about many nations which are part of East Asia, and their characteristics, their political characteristics too. They have advantages and disadvantages too. Nowadays we do not have time to fight and keep in check East Asia’s nations. We have to gather our power with them and solve this problem together to adapt to this terrible economic situation. References.
BOYCE, PAUL. “Recession Definition | Causes, Effects, and Solutions | BoyceWire.” Boycewire.com, 2 Febuary 2022, boycewire.com/recession-definition/. [Accessed 3 October 2022].
DePersio, Greg. “Ways Economic Growth Can Be Achieved.” Investopedia, 17 March 2021, www.investopedia.com/ask/answers/032415/what-are-some-ways-economic-growth-can-be-achieved.asp.
[Accessed 3 October 2022].
DePersio, Greg. “Ways Economic Growth Can Be Achieved.” Investopedia, 17 March 2021, www.investopedia.com/ask/answers/032415/what-are-some-ways-economic-growth-can-be-achieved.asp.
[Accessed 3 October 2022].
