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1/Today's @bopinion post is about Newly Industrialized Countries, and what they tell us about globalization and development.
These are the unsung success stories of the modern world economy. The next in line to become developed nations.
bloomberg.com/opinion/articl…
These are the unsung success stories of the modern world economy. The next in line to become developed nations.
bloomberg.com/opinion/articl…
2/By now, everyone should know that global inequality (as opposed to inequality within countries) is coming down, as poor nations catch up with rich ones. 
3/But a skeptic of globalization might say: Who cares? Even if Indian people have toilets and Ethiopians aren't starving, they're still generally poor, while the rich world still hoards fabulous wealth!
Well, Newly Industrialized Countries are the counter to this argument.
Well, Newly Industrialized Countries are the counter to this argument.
4/Here are some Newly Industrialized Countries. You can see their income per capita (adjusted for local prices), compared to the UK.
As you can see, countries like Malaysia, Turkey, Mexico, and Thailand aren't rich yet...but they're getting there.
As you can see, countries like Malaysia, Turkey, Mexico, and Thailand aren't rich yet...but they're getting there.
5/But aren't these countries caught in the "Middle Income Trap"?
NOPE. They're still catching up. In fact, since the Great Recession they're catching up faster than ever.
NOPE. They're still catching up. In fact, since the Great Recession they're catching up faster than ever.
7/Mexico has had to retool its whole economy away from oil, but now it's chugging along.
bloomberg.com/opinion/articl…
bloomberg.com/opinion/articl…
8/I had promised to write one post about each successful development story, but posts about Turkey, Poland, Romania, Thailand, etc. will have to wait!
9/So what can we learn from the success of the Newly Industrialized Countries?
First: Economic success is not limited to one region or one culture.
Malaysia and Turkey are mostly-Muslim countries. Mexico is in Latin America, Thailand in Southeast Asia, etc.
First: Economic success is not limited to one region or one culture.
Malaysia and Turkey are mostly-Muslim countries. Mexico is in Latin America, Thailand in Southeast Asia, etc.
10/Second, manufacturing exports are still really important. Industries like cars and electronics still seem to be the winners.
11/Third, if you aren't right next to a big market like the U.S. or Europe, you should at least maintain good diplomatic and trade relations with a big market.
12/Basically, the strategy of "export discipline" is still the winner.
Developing countries shouldn't listen to the naysayers that say this model won't work anymore. It is still working.
imf.org/en/Publication…
Developing countries shouldn't listen to the naysayers that say this model won't work anymore. It is still working.
imf.org/en/Publication…
14/Countries like Bangladesh, Indonesia, Ethiopia, Vietnam, Ghana, Philippines and Tanzania should follow the successful examples of Malaysia, Turkey, Mexico, Poland, Romania, and Thailand.
Let's keep adding to the list of Newly Industrialized Countries!!
Let's keep adding to the list of Newly Industrialized Countries!!
15/But the larger message here is: Globalization is working. Wealth is not being hoarded by the former colonial powers; an increasing number of formerly colonized nations are now becoming wealthy and powerful, through industrial policy, trade, and good economic management.
16/If we upend the global economic system, we'll be putting the success of countries like Turkey, Malaysia, Mexico, and Thailand at risk. AND we'll be endangering the futures of the next wave of industrialized countries.
Let's not do that, eh?
(end)
bloomberg.com/opinion/articl…
Let's not do that, eh?
(end)
bloomberg.com/opinion/articl…
