Economics & Politics of AsiaUNIT 3 OF ASIA

Section 1 – Climate & Environmental Issues

• Like all countries, nations of Asia face environmental issues.

• Pollution, maintaining wildlife, and protecting the natural environment in the face of attempts to industrialize, are all examples of environmental issues.

• most farmers use primitive farming methods; everything done by hand; water buffalo is used as plow

• in mountains people clear away the forest to farm; when soil is no good after a few years, they move on as rains wash the soil into the rivers

• rains ruin the soil by leaching which is the loss of minerals

• no roads to transport their products

• some farmers join cooperatives to help market products

and get low interest loans

INDIA• Overpopulation (more people than an

area can comfortably support) presents environmental problems for countries like India.

• More people means that more land is used for faming, grazing, and

development.• This disrupts the environment and can

create areas in which food and vegetation cannot grow.

• The need for fuel and the desire to industrialize also leads to deforestation (destruction of rainforests)

• As the number of people increases, more forests areas have to be destroyed to make room for homes, farms, cities, and businesses.

• Increased population means that more people generally drive cars, work in factories, produce products, and power the economy

• While these are not necessarily bad things they increase air pollution.

• In India, air pollution has created a cloud that stretches across much of South Asia known as the “Asian Brown Cloud.”

• It is a polluted mass of air that some scientists fear could harm millions of people across the world.

• Similar clouds are developing over East Asia, South America, and Africa.

• Water pollution is also a problem.• As the population grows, more and more

people use water supplies like the Ganges River.• People along the Ganges often use this river as a sewer and

deposit for trash, as well as drinking, bathing, and religious rituals.

• Meanwhile, in more developed areas, waste from factories can pollute the Ganges and other bodies of water.

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China• Today, China leads the world in its

pace and scale of economic development and foreign investment because of its large population, and the economic opportunities those consumers and producers represent.

• Their environmentally destructive factories however, produce large amounts of pollution.

• More people currently live in China than any other nation.• The Chinese face the unique challenges and opportunities

associated with feeding, housing, and building key industries to employ over a billion people.

• Because of lax environmental standards, however, the industries growing in China are polluting at unsustainable levels.

• The oil based economy and the traffic and industrial pollution they represent, make air and water pollution huge concerns.

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END THURS

Japan• Japan’s main environmental problem

is pollution• While Japan has benefited from

economic development since the end of WW II, progress has presented environmental challenges.

• As a small series of islands, space on Japan is limited.• Cities like Tokyo are incredibly crowded.• Traffic, factories, and business produce large amounts

of pollution as they provide economic opportunities.• Fortunately, because Japan is so highly developed, it

can afford to put in place new policies and technologies aimed at protecting the environment that poorer nations cannot.

Government Actions• Many governments are responding

to environmental problems.• India has set aside areas to protect

endangered land and animals• China now requires large plants and factories to install

pollution control devices• The Chinese government also enforces bans

forbidding families to have more than one child.• Japan’s newest laws environmental laws are some of

the toughest in the world.• They raise air and water standards, restrict pollution,

encourage recycling and establish national parks.

• South Korea has signed treaties with other nations to protect wildlife and wetlands

• Meanwhile at home, South Korea requires factories to limit harmful waste and water pollution more than ever before.

• While each country has sought to protect the environment, enforcing such rules often proves difficult.

• Many Asian populations live in underdeveloped regions.• Large numbers of people live at levels of poverty few in the US

could imagine• The desire to produce wealth, modernize industries, and provide

basic human needs often outweigh any environmental concerns.• Nations often extract natural resources

regardless of the environmental impact because they depend on these resources for income and survival.

• Governments often experience conflict between what is best for the environment and the immediate needs of their people.

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Impact of Location, Climate, and Population

India• A country’s location directly affects

what it is able to trade, what agricultural products it grows, and what industries it supports.

• India trades a lot of gems that are naturally found in the country.• Due to its cotton crops, it also exports a lot of textiles.• India also exports leather goods, engineering equipment, and

manufactured goods• Much of India’s agriculture takes place on small farms.• Among the most common crops are cereal, grains like rice,

wheat, sorghum, corn, and millet.• Rice is the most popular crop because it grows well in the wet,

hot climate that covers much of the country.• India also depends on other key natural resources, such as

petroleum, coal, iron, copper, gold, zinc, lead, and bauxite.

• rice. wheat, millet are main crops

• grows more peanuts, peppers and tea than any country in world; #2 in rice

• has many cattle but uses for milk and farm work; do not believe in killing cows

• crop yields are improving but still low for the growing population

• fertilizer still expensive through they use cow dung; also used for heating

• natural disasters strike many time like droughts, floods, cyclones, locusts, disease

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China• China is one of the most

important trading nations in the world.

• China buys large amounts of machinery, fuels, and chemicals from place like the US, Japan, Europe, and South Korea.

• It exports manufactured goods, electronics, industrial equipment, footwear, clothing, and many other products.

• China’s location means that only about 10 percent of its land can be sued for agriculture.

• Much of the land it too dry.

• The land that can sustain agriculture produces rice, millet, corn, tea, cotton, potatoes, and tobacco

• China’s industries have grown rapidly in recent years and provide much of the nation’s revenue.

• The most important industries in China are the machine building and metallurgical industries.

• China has also become one of the world leaders in the manufacturing of chemical fertilizers, synthetic fibers, and plastics.

• Other important industries in China are centered on toys, textiles,

clothing, shoes, and processed food (END FRI)

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Japan• Japan is the world’s second richest

country (US is first).• As a small island nation, it

depends heavily on trade.• Among Japan’s key exports are

electronics, computers, automobiles, machinery, scientific equipment, and chemicals.

• Meanwhile, Japan imports large amounts of food, textiles, fuels, and raw materials from countries such as China, the US, Saudi Arabia, UAE, Australia, and South Korea.

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Impact of Climate• The climate in Asia has been a major

factor in determining what agricultural produce and industries have developed in each country.

• The humid and tropical climate that covers most of the region has helped to

develop a large variety of plant life and vegetation.

• One of the most important crops in the region is rice.• Some countries, like Japan, have fewer natural resources.• For this reason Japan has focused on developing its

manufacturing industries.• Meanwhile, areas of the region that present more challenging

climates, such as the Himalayas or the Gobi Desert have produced little in the way of new industries or economic development.

GEOGRAPHY’S IMPACT ON PEOPLE• Geographic locations affects where people live, the work they

do, and how they travel from place to place.• In the Himalayas, people are more isolated and often depend on

subsistence farming and heading for survival.• In the Gobi Desert, nomadic heading is the normal way of life.• In fertile rural areas, much of the population lives as poor

farmers or small village artisans or merchants.• Meanwhile, in urban areas, people often work in factories and

live in overcrowded, polluted areas.• In cities and surrounding areas, cars, buses, and trains are

common forms of transportation.• In especially crowded cities, like Beijing, people often ride bikes

because the immense population makes it impossible for everyone to drive cars.

• Rural areas still rely on rivers and streams to travel by water.

Country Literacy RateJapan 99%

China 91%

Indonesia 90%

India 61%

Pakistan 54%

Bangladesh 44%

Literacy• Literacy (the ability to read and write) is very important for a

nation’s development.• Like most other parts of the world, Asian nations work to try and

improve their countries literacy rate.• More developed nations, like Japan and South Korea, have high

rates. • Less developed nations, like India, tend to have lower literacy

rates.• High literacy means that a population is educated

and prepared to compete with the rest of the world politically, economically, and otherwise.

• The more nations increase their literacy rate, the easier time they have growing economically and improving their citizens’ quality of life. End sec. 1

Section 2 - Modern Governments and Economic Systems of Asia

India’s Government & Economic System• India’s government operates as a

federal republic.• Power is divided between the

national and state governments.• The central government has three branches: executive,

legislative, and judicial.• The executive branch consists of the president, vice president,

prime minister, and the Council of Ministers.• The president serves as the chief of state and acts as the

nation’s chief representative.• Most of the real power rests with the prime minister• Prime minister - leader of the government and India’s top official. • The leader of the majority party in parliament serves as the

prime minister.• The Council of Ministers serves as the PM’s body of advisors.

• India’s parliament serves as the legislative branch.• It passes the country’s laws.• India’s Parliament is bicameral (has two houses).• The first house is called the Lok Sabha (House of the

People), and the second house is the Rajya Sabha (Council of the States)

• The judicial branch consists of India’s supreme court.• They are responsible for making sure the executive

and legislative branches carry out their

duties according to India’s

constitution• (End Mon.)

• 28 states make up India• Each has its own state governor and parliament• This governor is the chief executive of the state• The president appoints the local governors.• The Indian people

elect the local parliaments• Unlike the US, the

national government still has

ultimate authority over all state

matters.

• India has plentiful natural resources including coal, iron ore, diamonds, oil, and a variety of minerals and metals.

• It has a large population, second only to China.• The middle class in India is large and continues to

grow.• There is, however, a rather large portion

(28%) of India’s population that lives ` below the poverty line.

• India’s economy is a mixed economy• The government still controls industries and

businesses to some degree, but not nearly as much as it once did.

• After years of operating as a command economy, India changed course in the last couple of decades.

• Leaders discovered that state controlled production hurt India’s economy.

• In the last twenty years, India has allowed more private ownership and market competition.

• As a result, India’s economy has grown tremendously and the country is becoming a major player in world trade and international business.

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China’s Government and Economic System• China’s government operates under a one party

system in which all the political power rest with China’s Communist Party.

• Therefore, it is a very authoritative state with citizens holding limited power.

• Even when there are elections, citizens can only choose from candidates pre-approved by the party.

• China’s government consists of three branches: executive, legislative, and judicial.

• However, since all three are under the firm control of the party, there is no real separation of powers.

• China’s executive branch of government includes the president, vice president, premier, vice premier, and State Council.

• The Chinese president is the chief of state and speaks for China to the internal community.

• The premier is like a P.M. and acutely runs the government

• The National People’s Congress (NPC) serves as China’s legislature.

• It chooses both the president and the vice president.• It is a unicameral body (only one house).• Its main role is to review laws sent to it

by the executive branch.• Again, since all the leaders are part of the Communist Party, the

NPC almost always passes the laws.• Members of the NPC are elected by local councils.• The NPC only meets for 14 days each year.• The rest of the time the Politburo runs the country.• The General Secretary of the Communist Party heads the

Politburo and commands the army.• Finally, China's judicial branch is made up of the Supreme

People’s Court.• Unlike many other countries, this branch is not independent from

the executive branch.• It has no power to challenge actions of the other two branches.• Its role is to make sure the people obey Communist laws.

• China’s economy is a mixed economy that leans toward a command system.

• However, in the last twenty years, China has modernized its economy and

adopted certain characteristics of a market economy.

• The government allows some private industry and even foreign-owned businesses.

• China continues to move in the direction of a market economy in order to make production more efficient and meet the needs of their massive population.

• Still, the government exercises stricter control than in nations like Japan or the US.

China’s natural resources include coal, iron ore, oil, a variety of minerals and metals, and the potential for the world’s largest source of hydropower.

China produces the most coal of any country in the world, but it also consumes the most.

Despite its abundant natural resources, China was a poor nation for many years.

With the economic reforms of the 1980’s came increased agricultural and industrial output.

China produces all of the grain that its country needs. Since economic reforms were put in place, China’s economy

has had ups and downs, but from 1990 to this year, the economy grew at about 10% per year.

This is the highest growth rate in the world.

Japan’s Government and Economic System• Japan’s government is based on democratic principals

adopted after WWII.• The government has three branches: executive,

legislative, and judicial.• The executive branch includes the emperor, a prime

minister, and the cabinet.• The emperor serves as the nation’s head

of state; however, he has no real power.

• He merely acts as the representative of Japan.• The prime minister leads the government

had appoints the cabinet.• The cabinet helps the prime minster lead

the country (END Tues)

• The legislative branch consists of a bicameral body called the Diet.

• It consists of two houses: the House of Councilors and the House of Representatives.

• Japanese citizens elect the members of the Diet who are responsible for making the laws of the country.

• Japan’s supreme court heads its judicial branch.• It has complete independence and makes sure the

other branches carry out their duties according to the constitution.

• Japan’s economy is a thriving market economy and one of the wealthiest in the world.

• Prices of goods and services are based on supply and demand.

• The government owns very little industry and trade remains mostly unrestricted.

Throughout Asia, natural resources are unevenly distributed.

A lack of natural resources does not mean that a country

cannot be prosperous. Japan has few natural resources, but the Japanese use their trade to

get the funds that they need to purchase raw materials. They then use these raw materials to produce goods to sell in the

international market. With this strategy, Japan has become an economic powerhouse. Even the resources that Japan does have in abundance, like its coast

waters that provide fish, are not enough for Japanese demand. The Japanese, therefore, supplement their fish needs with fish

caught in distance waters and/or with imported fish.

Distribution of Natural Resources

Impact of Trade on India and Japan• Trade has played a crucial role in the

development of Asian nations.• In recent years, India has moved away from

a command economy to a market economy.

• It sold many state owned industries to private companies and opened its markets to more foreign trade.

• Foreign investment quickly rose.• Development and revenue increased.• Eventually, this increased India’s production

and exports.• Poverty and decreased and more middle-

class consumers exist in India than ever before.• Better health care, more public services,

improved education and a higher literacy rate have accompanied the economic improvements.

• Modern Japan depends heavily on international trade.• As a series of small islands, Japan cannot possibly

produce everything that it needs.• It also requires foreign markets to sell the goods it

produces.• Thanks to a market economy and foreign investments,

Japan’s economy is one of the richest and most productive in the world.

• Poverty is almost non-existent.• The average income in

Japan ranks among the highest in the world.

• Trade allows Japan to build and maintain its prosperity

• Countries bordering the Pacific Ocean are nicknamed the Pacific Rim.

• The include: China, Japan, Australia, North and South America, Russia, Korea, and many more.

• The Pacific Rim boasts some of the world’s most important cities and ports.

• For centuries, many of them have hosted ships traveling the world’s most used trade routes.

• Pacific Rim nations have important resources that are demanded in markets around the world.

• Some of these resources include oil, wood, coal, and rubber.• These nations also produce

important technology used across the globe.

THE IMPACT OF ASIA ON INTERNATIONAL TRADE• The countries of Asia have had a great impact on world trade.• For decades, Japan has produced some of the world’s most

popular products: computers, video games, cars, TVs, toys, electronic devices, etc.

• Since opening their markets up to world trade and competition, nations like China and India have also become major players.

• These nations produce textiles, processed foods, and various manufactured goods.

• Thanks to modern telecommunications (phones, the internet, etc.) that allow people to communicate anywhere in the world within seconds, even a number of US service industries are starting to rely on employees in Asia to help meet customers’ needs.

• Asian nations often produce products faster and cheaper than Western nations.

• Therefore, their products can be more affordable, creating consumer demand.

Trade Barriers• Trade barriers are anything, either man

made or natural, that interfere with trade.• As the world continues to globalize

(become more connected), more and more trade barriers are being removed.

• For example, when Western nations end tariffs, this helps countries like India.

• Tariffs raise the price of imports.• When nations do away with tariffs, Asian

products cost less.• This means more people buy them.• However, trade barriers can be useful for Asian nations seeking

to protect their own markets.• Without restrictions on foreign trade, less developed nations

sometimes have a hard time catching up to more developed economies.

Asian CurrenciesIndia – Rupee

China – Yuan

Japan – Yen

END Wed

Factors of Economic Growth• Factors include investments in

human capital, capital goods, available natural resources, and the contributions of entrepreneurs.

• These same factors impact Asia.• India relies on international help to help invest in human capital

and capital goods.• Foreign leaders also provide aid in capital growth.• Some of this help comes in the form of international donations.• Much of it comes as foreign loans.• The World Bank (international organization devoted to giving

financial help to developing nations) provides much of this help.• Projects financed by the World Bank have also included

investments in water sanitation, power output, and public services.

• As Indonesia struggles to develop, it also faces challenges to economic growth.

• The spread of disease, poor sanitation, and lack of modern health services are all problems for this island nation.

• Meanwhile, natural disasters, such as earthquakes or tsunamis (giant waves) commonly devastate Indonesia, hurting economic growth.

• China has made huge investments in human capital and capital goods over the last twenty years.

• The nation has introduced social programsthat have helped some escape poverty.

• Health care continues to improve as well.• Meanwhile, the nation produces large amounts of capital goods.• These goods continue to boost production and make China

competitive on the world market.

• Poverty (people living at an extremely low standard of living) is a huge enemy of economic growth.

• Poverty often means less education.• This makes for a less skilled workforce and

slow development.• Nations with high rates of poverty face the

challenge of trying to produce enough revenue to help ease the suffering, while lacking much of the human capital they need to produce the needed growth.

• How to overcome poverty and sustain economic growth will remain a major challenge for much of Asia in years to come.

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