NICs - Tiger Economies

A NIC is a Newly Industrialised Country. This means a country that has a rapidly developing industrial sector.

Some NICs are Japan, Thailand, Vietnam and Singapore. 

The items mentioned in the next column are very important. They describe how Governments can play a vital role in the development of industry. Particularly Governments of NICs have used a variety of ideas some are mentioned next door.

  • Government Legislation can encourage the building of factories with loans
  • They can enforce long working hours to help TNCs
  • Governments can relax health and safety and environmental regulations to help TNCs build factories
  • The Governments can ban strikes to help companies
  • Governments can also offer tax incentives and tax free zones  

NICs developed quickly for a number of reasons:

  •  Labour - people were prepared to work for long hours for little pay to begin withso things were produced rapidly
  • Government - introduced long-term industrial planning and tried to attract industry with financial incentives
  • Transport - all the countries were close to main shipping lanes. Ships are the cheapest way to transport goods long distances
  • Markets - goods were produced for a global market. Markets within Asia are increasing as people have more money.

South Korea is a rapidly developing NIC - here are some of the reasons as to why:

  • Stage 1 - 1960s: South Korea had few natural resources and little technical expertise. Early development focused on manufacturing that needed lots of workers - for example textiles
  • Stage 2 - 1970s: Investment grew heavy industries like shipbuilding, iron, steel and cars. The government planned to export these aboard.
  • Stage 3 - 19802-90s: Move to high-tech industries like computers and electronics