Free SS3 Economics Lesson Note
This SS3 ECONOMICS Lesson Note was pulled from our book ( LESSON NOTE ON SS3 ECONOMICS ); Compiled to serve as reference material to help teachers draw out their lesson plan easier, saving you valuable time to focus on the core job of teaching.
The Lesson notes are based on the current NERDC curriculum (UBE compliant)
This Lesson Note On ECONOMICS For SS3 Covers The Following Topics
- ECONOMIC LESSONS FROM THE ASIAN TIGERS, JAPAN, EUROPE AND AMERICA
- HUMAN CAPITAL DEVELOPMENT
- PETROLEUM AND THE NIGERIAN ECONOMY
- MANUFACTURING AND CONSTRUCTION SERVICE INDUSTRIES
- AGENCIES THAT REGULATE THE FINANCIAL MARKETS
- FUNCTIONS AND ROLES OF REGULATORY AGENCIES
- INTERNATIONAL TRADE
- INTERNATIONAL TRADE II
- BALANCE OF PAYMENT
WEEK 1
Introduction to the Economic Status of the Asian Tigers, Japan, Europe and America
The Asian Tigers which is comprised of four countries in South East Asia- Hong kong, Taiwan, South Korea and Singapore- have over the years become the fastest growing economies as well as and some of the strongest economies in the world. These countries have been hailed as models of development for other emerging economies. The main factors argued for their growth are mainly high saving rates and investment rates, outward orientation, factor productivity macro discipline, and other public policies. Currently, the Asian Tigers rank in the same status as the United States of America and most Western/Northern European countries; in terms of industrialization and economic advancement that is. The imperative question therefore is- what is responsible for these measured economic advancements and what can African countries (most especially Nigeria) learn from these countries?
The Economic History of the Asian Tigers and Japan (1960s-2000s)
South Korea: In the 1960s, South Korea’s gross domestic product (GDP) per capita was comparable with the poorest countries through Asia and Africa. However, in the following four decades, the country experienced considerable growth, affected in part by a system of close government, directed credit and import restrictions. As of December 2015, the country has a total GDP of $1.4 billion and a per capita GDP of over $35,000, with a growth rate of 3.3%.
Taiwan: Despite its contentious relationship with China, Taiwan has thrived over the last four decades, and it boasts a per capita income of over $45,000. Although the country is not part of the United Nations, due to pressure from China, it still maintains a strong showing as an exporter, and its GDP is over $1.1 trillion, making this nation of 23.4 million people one of the strongest economies in Asia.
Hong Kong: Considered to be a special administrative region in China, Hone Kong has freedom over all of its activities, aside from defense, until 2047. At that point, the relationship between Hong Kong and China will again be assessed. The country ranks extremely high on scales measuring economic freedom, and as of 2015, it boasts a per capita GDP of over $36,000, 286% of the world’s average.
Singapore: Although it has only 5.5 million citizens, Singapore has a GDP of $452.7 billion or a per capita GDP of $82,762. Considered one of the least corrupt nations in the world, the country has a transparent regulatory environment and well-secured property rights, which provide commercial security to the private sector.
Review of the Development Strategies employed by Developed Nations: Focus on the Asian Tigers
Having briefly looked at the the history of the Asian Tigers and how they were able to successfully transform their economies from third world to first world, it is imperative [therefore] for us to also examine some of the development strategies that enabled them accomplish what they have been able to accomplish. Read on below-
They skilled up the Labour Force: In the 1960s these nations were poor and had abundance of cheap labour. This excess labour was absorbed by labour intensive industries. Eg in 1965 Korea industry sector only employed 9.4% as opposed to 21.6% in 1980 yet agriculture employment fell from 58.6% to 34% over the same period. The excess labour was transformed into productive workforce through the education reform and yet remained competitively cheap. The focus was placed on education at all levels, all children attending elementary education and compulsory high school education. Money was also spent on improving college and university system.
They accumulated Capital: With respect to physical capital, the reasons can primarily be traced to the high savings rates. Policies also probably played a significant role in increasing the investment rate of the economy (High savings rates do not automatically translate into high domestic investment rates but nevertheless, the high savings rates have led to high domestic investment rates in Taiwan for example).As much as capital accumulation was key to the growth of these countries, capital productivity (recall labor transferred to industrial sector was accompanied with education reforms to add to its productivity) was essential. Capital productivity was attained through adopt foreign knowledge and technology. The technological catch up coupled with capital accumulation was significant to the Asian tiger’s growth.
They employed Outward-oriented strategies/policies: The more rapid growth can be growth can be associated with much greater openness. Both exports and imports grew about twice as fast in the Asian economies as they did in Latin America. Asian economies maintained much high ratios of exports and imports to GDP. In Hong kong and Singapore, openness was achieved by ending all restrictions on imports and giving free rein to the export sector. In Japan and Korea, and Taiwan, trade barriers were initially during the early 1970s however, the tariffs were gradually reduced. Among the tactics used in different countries were: exchange rate policies to favor exporters, export incentives, and selective tariff protection; financial repression, slowing financial sector development and consumer lending to provide cheap financing to industry – for exports, and for key industries; a high level of consultation between bureaucrats and business – both individual companies and industry groupings.
Slow Population Growth Rates: This played a great role in reducing family sizes (dependency ratios), creation of an educated labour force, accumulation of household and government savings, rise in wages and impressive growth of investments in manufacturing technology. 1965 each of the Asian tigers established family planning programmes and as a result fertility declined. Emphasis was also placed on civil education, increasing the rate of entry of women into the workforce and education sector; leading to delayed marriages. By 1995, the average fertility level was an average of two children per family (couple). Compare it with the Uganda’s current fertility rate of 6.7 births per mother. Smaller families produced 3 major demographic changes; slowed growth in the number of school-age children, a lower ratio of dependants to the working age adults and a reduced rate of labour force growth.
Knowledge driven economy: It was realized that there is need for research and development if a country was to grow to economic maturity. The Asian Tiger governments committed to improving research and development. E.g. in Malaysia the research activity was/is determined by the needs of the industry including the needs of Small & medium industries. Even in these countries, the skills focus was professional and managerial occupational skills, research skills, professorship skill and technical skills. The industries became knowledge driven industries and e.g. in Singapore gradually 2 out of 3 jobs were for knowledged and skilled workers in manufacturing sector and 3 out of 4 of the export services sector. Investment in Research & Development meant that evidence advised policymaking in these countries.
Effective and stringent Public Policies: This consisted of credible macro economic policies that kept inflation low, interest rates low, fiscal policies that focused on raising saving rates and investment rates, as well as policies that enhanced the development of infrastructure. These factors consequently promoted private investment and growth. For example, in Singapore despite the lack of natural resources and the absence of a large domestic market, high growth rates and eventually development were realised. This remarkable success has been attributed largely to sensible and effective policies and the early attention paid to Singapore’s infrastructure
Pegging performance to milestones: Much has been written about pegging remuneration to performance in the business world. The unique feature of the Singapore system is that public service remunerationwas pegged to performance which was benchmarked against the milestones that hadbeen agreed upon by the agencies and the parent ministries. At the highest levels, political office holders and senior public servants had their salaries pegged to economic performance and the salaries of the top echelons of a group of key professional classes. At the lower levels, compensation was pegged against performance against milestones.
Quality and standardization: Emphasis was placed on production of high quality standardized goods that would compete at the global level. Experts on Standardisation and quality assurance were brought in from Japan, US and UK.
ASSESSMENT
- Which countries comprises the ‘Asian Tigers’?
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