Asian tigers, also known as the ‘Little Dragons’ are a group of four Asian countries namely South Korea, Taiwan, Hong Kong, and Singapore. These four nations went through rapid industrialisation from the 1960s to the 1990s and had a growth rate of 7 per cent per annum. By the 21st century, all the Asian nations had developed into More Economically Developed Countries (MEDCs). In which, there is a competitive advantage within the production of many value-added goods, making their industrial sector, especially the manufacturing sector very powerful. The Asian Tiger countries focused on infrastructure development and education, export promotion, low tax rates, and macroeconomic stability.
Hong Kong, officially known as the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) is a metropolitan area administered by China and is located in the South China Sea. It is the world’s most densely populated region with a population of 7.5 million, according to the latest estimates and an area of barely 1,100 square kilometres. By 2020, The GDP (PPP) of Hong Kong is $439.459 billion. and its GDP per capita is more than $58,000- which is among the highest in the world. The Human Development Index (HDI) of Hong Kong is 0.949 and is ranked 4th in the world.
The year 2020 was very tough for Hong Kong as far as the economy is concerned. They encountered an economic crisis in 2019 due to a trade war between China and the US. Furthermore, the advent of COVID-19 in January 2020 in Hong Kong, a strict lockdown was imposed and the economy suffered badly with a negative growth rate of 9 per cent during the first quarter of 2020. Hong Kong and China have a tumultuous relationship history since the early 2000s. There are multiple factors behind it like changing world economic system such as Hong Kong’s quest for independence, and its ambiguous interpretation of the ‘One Country; Two systems’ principle. Hong Kong recently has desired to pursue a fully democratic form of government in the country and has run an international campaign for independence from the tentacles of China. This has resulted in China respond stringently, imposing crackdowns many times during the past one year.
South Korea, also known as the Republic of Korea, is a country located in East Asia neighbored by North Korea. The GDP (PPP) of South Korea is $2.293 Trillion and its GDP per capita is more than $44,000 according to 2020 estimates. The Human Development Index of South Korea is 0.919 which actually is very high. The economy of South Korea was well-performing in the pre-pandemic era. With the spread of COIVD-19 across the globe every country has to take strict measures to cope with it and South Korea was no different. Paralyzing lockdowns were imposed by South Korea to curb the excesses of the virus.
COVID-19 had crushed everybody’s economy except South Korea’s as their health policies proved to be effective and the economy recovered in the second half of the year 2020. Although South Korea had a negative growth rate of 1 per cent per annum in the year 2020, it is the least economically affected nation in the world after China. South Korea and China have not been on good terms historically. In fact, both these nations had not issued recognition to each other till the 1990s. But, in recent history preferences have changed and both nations have shown great interest to pursue good socio-economic and political relations with each other.
Taiwan, also known as the Republic of China, is a nation in East Asia. The GDP (PPP) of Taiwan is $1.276 trillion and its GDP per capita is more than $54,000 in the year 2020. The Human Development Index is 0.911 which is amongst the highest in the world. The pandemic of COVID-19 barely dented Taiwan as the nation even held presidential elections in January 2020. People in Taiwan managed a normal life during the pandemic but strictly followed social distancing. The relationship between Taiwan and China has not always been smooth. China considers Taiwan as its own province and Taiwan considers its self as an independent state. Although history says that Taiwan was a province of China but many nations in the world have recognized Taiwan as an independent state. The animosity is not likely to be assuaged between China and Taiwan as Taiwan is getting close to the USA by every passing day.
Singapore, officially known as the Republic of Singapore, is a sovereign state in South East Asia. The nation is bordered by the Strait of Malacca, an international chokepoint, and the South China Sea. The GDP (PPP) of Singapore is $615.698 billion and its GDP per capita is more than $107,000 in the year 2020. The Human Development Index is 0.939 and is the 3rd highest in the world. The pandemic of COVID-19 has badly affected the economy of Singapore. Both demand and supply-side shocks had led to a dip in economic activity in the nation. According to the Monetary Authority of Singapore (MAS), the economy of Singapore will take a little longer than ever to come out of this recession linked to the pandemic. The relationship between China and Singapore is getting deeper day by day. The warming of relations can be traced back to the 1990s. Since then common interests have led these two nations to a smooth and sustained relationship.
In a crux, we can say that the four Asian Tiger’s economies have been affected by the pandemic of COVID-19. But it is expected that they will bounce back and recover strongly. All these four nations should prioritize a smooth relationship with China to fully utilize the economic potential of China for sustainable development.
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