Economic Growth in Southern and Eastern Asia

SS7E10: The student will describe factors that influence economic

growth and examine their presence or absence in India,

China, and Japan

Quick Quiz: Factors that influence economic growth

• Human Capital• Natural Resources• Capital• Entrepreneurship

a.Raw materials that come from the land

b.Factories, technology, machinery

c.People who perform labor

d.Taking a risk to start a business

Investments Pay Off

Investments in Human Capital and Capital lead to a higher GDP!!!!!!!!!!!!!

India’s Human Capital

• Number of schools has grown in the past 20 years

• Overall literacy rate is 60%, but 95% for children 10-14 years old

• English is taught in all schools• Many are skilled in information

technology – “outsourcing” has become a major practice in India

India’s Capital Investment

• Neglected to invest in country’s infrastructure

• Terrible road construction• Frequent power outages• Airports, railways, and power plants

have suffered

India’s Natural Resources

• Has very fertile land • Good water supply• Important crops – rice and wheat• Forests• Coal Reserves

India’s Entrepreneurs

• Entrepreneurship is increasing!!• India’s government supports new

business owners• Government provides training and

facilities

China’s Human Capital

• Has improved educational system• Number of college students has grown• Many students are getting engineering

degrees (More engineering degrees)• Studies show engineering degrees = a

growing economy• China has also invested in technical

schools to train workers

China’s Capital

• Money has been used to help with manufacturing

• Manufacturing is half of China’s GDP• Country also has dependable water

services, electricity, and transportation

China’s Natural Resources

• Coal• Iron Ore• Petroleum• Natural Gas• Land for industry• Rivers for industry• Not much farmland

China’s Entrepreneurship

• Entrepreneurship has grown dramatically

• Private business is the fastest growing segment of the economy

• Government helps fund small business • Welcomes investment from foreign

countries

Japan’s Human Capital

• Has a high emphasis on education• Students take entrance exams to get

into high schools and universities• Labor force is very highly educated and

a major reason for economic success

Japan’s Capital

• Country has a history of investing in new technology

• Tax breaks are given to individuals and corporations who have had high rates of savings

• Savings have been used for new factories and machinery

Japan’s Natural Resources

• Very little farmland and natural resources

• Imports raw materials needed for industry

• Fishing industry is large in Japan• Country uses its educated workforce and

capital investment to overcome it lack of natural resources

Japan’s Entrepreneurship

• Low rate of entrepreneurship• Japanese companies offer a “job for life”

to its employees• Workers take pride in their position in a

company• Entrepreneurship is seen as “risky” and

discouraged in Japan