Southeast AsiaThe Economy and Environment

The Economy of Southeast Asia

Fertile plains and river valleys major source of agriculture

Agriculture is the leading economic activity

Rice main crop Thailand and Vietnam world’s top

exporters of rice 3/4 of all workers in Laos, Cambodia

farmers Flooded rivers irrigate paddies

(flooded fields) Grow two crops a year, little modern

machinery used Rubber is a cash crop in Thailand,

Indonesia and Malaysia Sugarcane, coffee and spices other

regional exports

The Economy of Southeast Asia

Many species of fish found in rivers across region

Fish farming important part of economy

Southeast Asians consume twice the world average of seafood

Overfishing is a concern

The Economy of Southeast Asia

Forests and Mines Major industry on mainland Myanmar is the major world supplier of

teakwood Industry has contributed to

deforestation Mineral deposits Malaysia, Indonesia,

Thailand Malaysia world leading exporter of tin Oil deposits Malaysia, Brunei, Indonesia Oil accounts for nearly all of Brunei’s

export income Indonesia is the regions largest

petroleum exporter Pipeline construction growth industry

The Economy of Southeast Asia

Papua’s Resources Indonesia controls

western half of New Guinea

Government has set area aside for resource development

Timber and mineral deposits abundant

Foreign countries come in and extract resources but do little to invest in health, education or public services

The Economy of Southeast Asia

Industry Rapidly growing, people leaving

farming for urban manufacturing jobs

During last part of 20th century there was an economic boom based on natural resources, cheap labor and foreign investment

Debts and financial corruption led to economic crisis in 1997

Countries have had to balance growth with economic responsibility

The Economy of Southeast Asia

Singapore SE Asia’s most developed economy Ports, harbors and international trading links make it a major

manufacturing center Free Trade Zone established 1965, attracted foreign investment Moved into oil refining, electronics To keep skilled workers country has invested in education Malaysia diversified economy, Rubber and palm tree oil major exports, also manufactures

electronics and building supplies Developed heavy industry (steel making, auto assembly) World’s leading exporter of microchips

The Economy of Southeast AsiaLess Industrialized Countries Indonesia- late 1990’s political instability affected economic

growth Major supplier of raw materials for world markets Labor force lacks skills for industrialization, needs foreign aid for

development Laos, Cambodia, Vietnam, Myanmar developing even slower Wars, political changes keeping countries from developing Laos landlocked, remains largely agricultural Communist policies to collectivize agriculture reduces incentive to

get ahead Rich in mineral resources, lacks modern technology to develop Vietnam growing population, inadequate infrastructure slow

development Literate population shows potential for growth Natural beauty of coastline potential for tourism Cambodia political problems slowed growth, lack of skilled workers Myanmar self imposed isolation prevents economic progress

The Economy of Southeast Asia

Physical geography affects transportation and communication across region Water transportation the most common way

to move people and goods Shipping is an important industry in the

region Quality of land transportation depends on

the degree of development in the country More successful economies have better

transportation networks Highways and railroads generally link major

cities The physical geography of rural areas

make building transportation networks difficult

The Economy of Southeast Asia

Communication networks depend on level of industrialization

Singapore most well developed communication networks

Use of the internet and wireless communication is growing

Governments typically control radio and TV

Living in Southeast Asia

Countries in SE Asia are becoming more interdependent

Organizations formed to promote trade, development and economic stability

Seen as an alternative to foreign investment

Asian Development Bank (ADB), Association of Southeast Asian Nations (ASEAN)

ADB provides loans to support development for agriculture, transportation and industrial projects

ASEAN’s main goals to promote economic growth, cooperation among region’s countries (free trade, reduction of tariffs)

Members try to balance diverse nation goals with regional growth

2004 signed a trade agreement with Chinese

ASEAN member countries are working to form a common economic market (like the EU) by 2015