Advantage of its large population (Asia is the most populated continent in the world) but also equipped the population to have the needed skills to lead the new world of industrialization. In some circles of the economic world, debate has always raged as to which of the factors of production to give prominence to in the economic development model. But clearly, all three factors are interrelated and equally important. Empowering human resource through education is an effective way of ensuring that population growth does not become a curse but a blessing.
As Asia and Eastern Asia for that matter is one of the world’s most populated regions, if efforts are not made to resource the human capital with requisite skills and knowledge to play contributing roles in the economic drive, the populace would become a liability instead of an asset. It is also when the populace are adequately skilled that they can made judicious use of the capital and technology that is pumped into the economy. The region adopted a model of macroeconomic stability instead of microeconomic growth. Microeconomic stability could not have been adopted as a model because it focuses more on short term economic relief than long term strategies.
In their quest to achieving this, the economic climate of the region was positioned in a way that ensured that inflation was kept low, real exchange was made stable and competitive and government budgets deficit and foreign debts were kept within acceptable range. The long term impact that these policies on the macroeconomic state of the region was that it created very conducive working for investors to choose the Eastern Asian trade corridor instead of other trade corridors.
As these investors established their businesses, employed citizens of Eastern Asia countries, paid taxes and undertook social intervention projects, the economic growth of the region was sped up (Chenery & Srinivasan, 2010). Again, most of the companies that took advantage of macroeconomic stability to start their businesses continued to remain operating in the region and continue to operate there. This way, the region enjoyed and will continue to enjoy the economic benefits of the companies on long term basis. Because of the macroeconomic stability in the region, “when the economy is struck by external shocks, such as an export price shock or a large rise in world interest rates, fiscal and monetary policy are adjusted quickly to avoid inflation or exchange rate
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