Looking at Asia Pacific...

Abstract

Under the tltle "the poor and lhe rlch" lhe Economist from May 2$", 1996 sought to explain why some countries are richer than others. Here are some imporfant conclusions: 1. Dlfferences between countrles exlst not beca use of a lack of resources but beca use of the Inablllty to use exlstlng resources efflclently and effectlvelYi many years to come. Asia Pacifico The region is on its way to become very affluent and will become the largest market in any sector of the world. The countries in the region are in different stages of development, but by large, they follow the same policies: open market, investments in education and infrastructure and, finally, policies which are interesting for business, transparent and stable. And highly competitive, because govemments realise that there is not a great deal of feelings in the flow of capital and technology. Each and every country in this region deserves a book, if not a library. And many indeed have been written. I would like to make a few brief observations about two countries, both on either side of the scale: Singapore and China. Singapore, not so long ago an "entrepôt economy", transformed itself into a very modem state in a little more than a generation. Actually, it is doing so well that, today, 90% of all families own their house or apartrnent. It also has the best infrastructure in the region and a per capita income of over U$25,000 per year. Asiaweek, one of the leading magazines in the region, publishes a number of key factors for success. The most important are: strong govemment, long term planning, foreign investment, c1ean administration, emphasis on education, law and order, a non "welfare state" and sensitivity to other cultures