Economic Growth: Politics or Policies Matter? Free Essay, Term Paper and Book Report
Today’s rapidly growing economies are classified as Newly Industrializing Countries or NICs and most of the NICs are located in Asia. Despite the current economic crisis, which remains as a mystery, NICs experienced a rapid economic growth over the last 40 years. Economic growth refers to an increase in the productive capacity of an economy. Japan was the first country to experience a rapid economic growth in Asia. Its economy continued to expand rapidly from the mid-1950s through the 1960s. The annual growth rate averaged close to 11% in real terms for the decade of the 1960s. This compared with 4.6% for the West Germany and 4.3% for the USA in the period from 1960 to 1972. And it was well above twice Japan’s own average prewar growth rate of about 4% a year. It is generally agreed that the rapid expansion of Japan’s economy from the late 1950s through the 1960s was powered by the vigorous investment of private industry in new plants and equipment. The high level of saving of Japanese households provided banks and other financial institutions with large funds fo......
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