Since the 1990’s crisis most of the Tiger economies have become financially and now have stronger companies and regulatory frameworks in place to prevent another similar crisis. However, this has shown many Asian governments that the easy and predictable prosperity of export-led growth and cheap labour costs will not last forever. The emerging manufacturing giants of China and India are forcing the Tigers to look into creating new industries that add more value and create stronger service sectors to help provide stroeg demand at home, so that they can compete.
1. Development is impossible if Nigeria do not use the policy of import substitution, We can not continue to depend on import without developing our industrial sector.
2. Government should focus on the production of fertilizers, plastics and synthetic fibers from the country’s huge natural resources. This would encourage agricultural’ productivity.
3. Nigeria must find her comparative advantage. She must emphasis on products that can bring astonishing growth to her economy. An example is that Singapore and Hong Kong focused on being international financial centers while Taiwan and South Korea focused on their manufacturing sector with emphasis on Information Technology.
4. Nigeria should establish a banking system that favors the culture of the Nigerian
people.
5. Nigeria should formulate economic policies that would keep the country’s corporate and household debt at moderate and manageable levels.
6. The educational sector of the country must be given priority attention as obtained in the Asian Tigers.
7. Corruption, theft, and outright looting of government treasury must be discouraged A corrupt country cannot see through the process of development.
8. Jobs should be created for the teeming population of Nigerian youth. They must also be encouraged to create jobs in the informal sector of the economy.
9. The productive base of the economy needs to be restructured and diversified to reduce dependence on oil and imports.
10. Nigeria should vigorously pursue the achievement of fiscal and balance of payment viability.
11. Further devaluation of the naira must be stopped to prevent distortions in the economy.
Summary
The Four Asian Tigers or Asian Dragons is a term used in reference to the highly developed economies of Hong Kong, South Korea, Singapore and Taiwan. These nations and areas were notable for maintaining exceptionally high growth rates (in excess of 7% a year) and rapid industrialization between the early 1 960s and 1 990s. By the 21st century, all four have developed into advanced and high-income economies, specialization in areas of competitive advantage. For example, Hong Kong arid Singapore have become world-leading international financial centers, whereas South Korea and Taiwan are world leaders in manufacturing information technology. Their economic success stories have served as role models for many developing countries.
Despite a World Bak report crediting liberalness policies with the responsibility of the
boom. including maintenance of export-led trade regimes, various analysts criticized the
institution for overlooking a range of other state supported policies that facilitated growth.
The tigers experienced decades of supercharged growth based largely on state industrial
policies supporting exports to rich, industrialized nations.
Even the World Bank report acknowledged benefits from policies of the repression of
the industries. As a result these economies enjoyed extremely high growth rates sustained
over decades. Other important aspects include major government investments in education,
nan-democratic and relatively authoritarian political systems during the early years of
development, high levels. bond holdings, and high public, and private savings rates.
Questions
I. Name the countries that were referred to as Asian Tigers? Why was their growth
referred to as an economic miracle? Discuss.
2. What influence do the China economy have on the economies of the Asian Tigers.
3. Identify seven lessons from the Asian Tigers for any developing economy like
Nigeria’s.
4, Explain in detail the economic strategies employed by these countries called the Asian
Tigers.
In recent times, some commercial banks use savings withdrawal and savings deposit slips in addition to the passbook. Withdrawals can be made without prior notice. Nevertheless, the interest earned on the savings deposit account is relatively lower than that earned on fixed time deposit accounts.
At the same time, there is always an upper limit on the amount of money a customer may keep in a savings account. If a customer exceeds this stipulated maximum (which differs from bank to bank); the bank will advise him to transfer the excess into a time deposit account.
The Transfer of Money
Commercial banks help their customers in making payment on their behalf through the use of transfer facilities like bank drafts, certified cheques, bills of exchange or discounted bills of exchange and standing orders.
Customers operating demand deposit accounts do make payments through the issuance of cheques which are drawn on their banks. The commercial bank then transfers money on its customer’s behalf to the bearer or the person it is directed to pay money to. Likewise, bank drafts and bills of exchange are used similarly by customers of the bank in trade transactions.
Customers of the bank can as well give their banks standing orders; which are special arrangements between the customer and his bank, with regards to regular payments of rents, school fees, insurance premiums, annual dues of societies/bodies and salaries and wages of staffs in the case of business units.
This function is highly beneficial to the bank customer since it affords the
customer to pay money (even large sums) over a long distance without the need for
personal contact and the need to carry large sums of money around.
Provision of Loans, Advances and Overdrafts
This is the major source of income of commercial banks. Loans and advances are money loaned out to customers for a specified period of time and requires interest payments until the total loan is fully paid back.
Overdrafts are privileges granted to current (demand) deposit account holders to withdraw more money than deposited in their accounts. However, this amount loaned out (or the excess withdrawn over and above the amount in his account) carries a fixed rate of interest.
Furthermore, commercial banks lends to their customers by discounting bills of exchange. This implies that the bank on behalf of the bank customer (who is a debtor that made out a bill of exchange to his creditor) pays the creditor on behalf of the bank customer before the date specified on the bill of exchange. This enables the bank customer to meet his indebtedness and the creditor to receive speedy payments for goods sold or services rendered.
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