Becoming an industrialized economy is the primary goal of each country - Macroeconomics Essay introduction. Because of the relative factor of positive developments, many of nations are looking for techniques from external references to acquire information about structuring their respective economies.
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Using the experience of Hong Kong and Singapore, a newly industrializing economy can benefit from the outright exemplary contribution of these two economies. Basically, Hong Kong was able to achieve its full blown industrial capital because of the concept of laissez-faire. On the other hand, Singapore also had the opportunity to minimize government intervention to its trade and business sector resulting to great transparencies of trade interchanges. Moreover, the country implemented the concept of “entrepot” in which it acquires raw materials through importations and then sends the finished product back to the world market (Country Studies).
Basically, the World Bank can provide assistances to newly industrializing economies to follow what Hong Kong has done. Laissez-faire can provide an optimum level of growth because the state will not have direct responsibility or intervention in the activities within its market. This will help in efficiently distributing wealth among the different sectors of the country which will then narrow down to common individuals of the population. Moreover, a laissez-faire type of market can easily follow a secondary path just like what happened to Singapore. Since the business and trade sectors will gain full control of the market, it can also do the process of entrepot, contributing to additional revenues for the local industries.
Country Studies. N.D. Economy Patterns of Development. Country-Studies. Retrieved January 29, 2008 from http://www.country-studies.com/singapore/economy—patterns-of-development.html.