Economic Growth: Politics or Policies Matter?

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 …

…NICs such as standards of living, levels of productivity, geographic size, population, historical background, industrial structure, and human, natural and physical resources. Most importantly, human capital or the knowledge, skills, abilities and capacities remained insufficient. Malnutrition has often increased the cycle of poverty. There are many sources and types of inequalities including rural vs. urban, entrepreneurs vs. others, those with political and social connections vs. those without, and religious, ethnic, and racial differences among people.