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
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