Saturday, August 24, 2019
Developing Countries and Financial Liberalization Essay
Developing Countries and Financial Liberalization - Essay Example Asia has long been home to worldÃ¢â¬â¢s most dynamic economies. The last decade has shown us a broad flowering of entrepreneurship throughout Asia in the face of different challenges. Factors attributed to this trend include a huge wave of private equity and venture capital funding, but more importantly, regulatory laws for financing and capital acquisition were eased and the less stringent rules governing the listing of young companies at the various stock markets helped in many companies getting the money they need for business (Robinson, 2005). The ease of getting loans and the financial liberalization process helped the growth of Pacific Rim for countries such as China, India, Hong Kong, Taiwan and even Japan. In particular, after the Second World War, Japan came to represent a model of economic development. Of course the massive gains made by the economy were based on the manufacturing of electronics and automobiles but the financial liberation process certainly helped the cou ntry gain its footings after the destruction it experienced (Herring, 2006). Similarly, Hong Kong has always been rated as one of the more free economies and even though it went through a change of government i.e. from Britain to China, it has retained the financially liberal attitude of the British economy rather than the controlled system of the Chinese. Taiwan can also be put on the list of countries benefiting from financial freedom. Although it has had a share of political instability and outright threats of invasion from China, it has led the way in semiconductor and IC manufacturing (Bremmer & Zakaria, 2006). Perhaps the biggest surprises resulting from the process of financial liberation are the giants that started emerging in the early 1990s, China and India (Hubbard, 2005).