10-East Asia economic geography

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McMaster University *

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Oct 30, 2023

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GEOG 3RW3 REGIONAL GEOGRAPHY OF A SELECTED WORLD REGION Topic: EAST ASIA Instructor: Elnaz Abotalebi Office Location: BSB 342 Email: hajaboe@mcmaster.ca
Economic Geography • Economic geography is the study of the location, distribution and spatial organization of economic activities across the world.
Measuring economic development • Gross Domestic Product (GDP): an estimate of total value of all materials, goods and services produced by a country in a particular year. • Gross National Income (GNI): is the total domestic and foreign output claimed by residents of a country. • Purchasing Power Parity (PPP): it measures how much of a common “market basket” of goods and services each currency can purchase locally. • GNI PPP: this number represents the total value of goods and services a person could buy locally with his/her income.
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Human Development Index • Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: life expectancy, being knowledgeable and having a decent standard of living
• HDIs suggest that people are better off in Japan or South Korea where the standard of living is very high. • Overall, people in East Asia have better standards of living than people in South or Southeast Asia.
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SCHOOLS OF THOUGHT ON DEVELOPMENT • Geographers commonly use the relative terms developed (stationary) and developing (expanding) to indicate relatively rich or relatively poor countries.
SCHOOLS OF THOUGHT ON DEVELOPMENT • After the rise of communism in Russia and China, development experts assigned countries ideologically based designations. • Technologically developed, democratic nations formed the First World, • the communistbloc nations were called the Second World, • and the remainder became the Third World. • When the Soviet Union collapsed and China began adopting aspects of capitalism, and poorer countries such as Malaysia emerged as Economic Tigers, these assignations became obsolete. • Nevertheless , you will still hear the term “ Third World ” being used by some people.
Reshaping economic geography in China • China is the best example of how a country has reshaped its economic geography to reverse half a century of economic decline. – they broke the gridlock in the mobility of factors and goods both internally across provinces and between urban and rural areas and externally between China and the rest of the world
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China's New E conomic Direction Toward a Post-communist Economy • 1970s Deng Xiaoping took over after Zedong's death • Xiaoping allowed private ownership of businesses and farms • officials welcomed foreign businesses and technology • special economic zones where foreigners could own and operate businesses with little government interference
rapid growth in china • Gross domestic product (GDP) growth averaged nearly 10 percent a year • Lifted half a billion people out of poverty • Growth increased sharply in the first half of the 1980s • The transition was supported initially by an “ open- door policy ” that strengthened the investment along the coastal provinces • the open-door policy began with the establishment of the first special economic zones (SEZs) in 1980 in four cities
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SPECIAL ECONOMIC ZONES These SEZs were the precursor to a more broad- based improvement in China’s investment • Investor incentives • Low taxes • Easing of import and export regulations • Simplified land leases • hiring of contract labor permitted • Products may be sold in foreign markets and in china (under certain restrictions)
Three Ds of economic growth in China • realizing the benefits of agglomeration through a higher density of economic activities in its major urban centers • overcoming the distance factor by making a concerted effort to improve regional transportation and communications infrastructure, • eliminating internal and external divisions to promote national market integration and China’s participation in the global economy.
Key factors/policies • agglomeration benefits • Productivity of Chinese enterprises • fiscal policies • investment in transport services
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Economic Development: The Golden Coastline
HONG KONG • Means “fragrant harbor” - an excellent deep water port • Boomed during the korean war • 6 million people within 400 sq miles • Economy is larger than half of the world’s countries – great benefit to china • 1 july 1997- british transferred control to china – many businesses remained there • Acquired a new status as china’s only special administrative region
Chinese Development – Social Conditions in China • China has made large investments in medical care and education • Regional contrasts in social development, well-being – China’s Population issue • 1.2 billion people in China – Establishment of the “one child policy” – Gender imbalance, other unintended consequences – The Position of Women • Traditionally low position in Chinese society
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China’s Population Policy • Under Mao Zedong – no emphasis on reducing population growth rate. • Under Deng Xiaoping – One- child policy per family
Rural & Industrial Economies • China is still a largely rural society has a self-sufficient agriculture • 60% of Chinese work on farms • China produces rice, maize, wheat, and sweet potatoes • Shanghai leads China as a center of manufacturing and is one of the great industrial centers of the world • It has a huge textile industry & exports most of its cloth to the United States
Class Activity • Discuss how the growing economic power of East Asia could lead to social and cultural issues?
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Chinese Development – Local culture is affected by new foreign cultures – Social and Regional Differentiation • Chinese economic reforms resulted in social and regional differentiation (when certain groups and portions of a country prosper while others fail) – The Booming Coastal Region • Most of China’s economic benefits have flowed to the coastal region and Beijing • Uneven distribution of wealth • Gap between poor and rich increases – Interior and Northern China • China’s interior and northern portions have seen little economic expansion; Manchuria is a “rust belt”
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23 Industrial North: China’s Rust Belt; Formerly called Manchuria
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Two Very Different Economies; Mongolia and Taiwan • Mongolia still engages in herding & managing livestock • Mongolia is committed to developing other industries • Their natural resources are important to their developing economy • Taiwan has one of the world most successful economies with prospering manufacturing industries • It is an economic tiger (country with rapid economic growth due to cheap labor, high technology, and aggressive exports)
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Economic and Social Development: An Emerging Core of the Global Economy • Japan’s Economy and Society – Japan’s Boom and Bust • 1950s was beginning of the Japanese “economic miracle” – Use of cheap labor shifts from clothing and toys to more sophisticated goods • 1990s: economic slump caused by collapse of inflated real estate market • Japan still a core country, with global influence – Living Standards and Social Conditions in Japan • High standard of living, though a little lower than U.S. • Low unemployment, health care provided; low crime rates • Literacy high, infant mortality low, life-spans long
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JAPAN’S CORE AREA
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The Newly Industrialized Countries – The Rise of South Korea • 1960s program of export-led economic growth in South Korea • Shift from inexpensive consumer goods to heavy industrial products to high-tech equipment • South Korean companies increasingly became multinational – involving more than one country
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The Newly Industrialized Countries – Taiwan and Hong Kong (now part of China) • Both have higher per capita gross domestic product (GDP) levels than South Korea • Government-guided economic development in Taiwan • Hong Kong has a market freedom, with increased government control • Economies linked internationally
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THE JAKOTA TRIANGLE • Characteristics – Great cities – Enormous consumption of raw materials – State-of-the-art industries – Voluminous exports – Global links – Trades surpluses – Rapid development • Challenges – Social problems – Political uncertainties – Vulnerabilities
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