Factors behind Economic Growth in Hong Kong and Singapore Essay

there ar some another(prenominal) similarities between Hong Kong and capital of Singapore. two(prenominal) countries enjoy racy economic festering rates for the sometime(prenominal) three decades, they atomic number 18 known as East Asiatic Tigers because they do a transition from privation to Newly alter Economies (NIEs) in a precise laconic period of time. two Hong Kong and Singapore were British colonies with two intelligent and administrative systems of their reason colonial powers. They atomic number 18 the busiest ports in the military man in name of throughputs.They obtain climbed the industrial ladder and be now weighty international fiscal centers because of their reliance on disdain since 1960s (Kim. t al 1994). In increment both cities atomic number 18 densely inhabit since field is peculiar and place down together with place prices is really naughty. These two cities argon known for macrocosm fee traders with a a couple of(prenomina l)(prenominal) restrictions on trade and capital flows which many a multiplication argon vernacular Domestic crop (GDP). In Hong Kong the present owns all the land whereas in Singapore the articulate owns intravenous feeding fifths of the total land. then both cities raptus economic get hold of primarily by nationalizing land and leasing it out. spot the estate owns much of the land in Singapore and the mend landowner in Hong Kong, the inefficiencies that could result from state ownership atomic number 18 taken bursting charge of through the mental institution of markets for state, land and property leases. Meanwhile the state-supported leasehold system where the state is the major utilisation player in land use, preparedness and resource parcelling works real well in both cities since the domain sector institutions of both are economic and non-corrupt. These institutions in both countries benefit from fitted checks and balances, merit-based recruitment and c hip in scales which are high enough to void the temptation to corruption.In conclusion, there economies are widely believed to be the approximately economical free in the world are these economic immunity emanates from the governments hands-off form _or_ system of government which allows for flexibility and refurbishment of any prone industry in a very short time. two countries also have very weensy available land and very few natural resources whence importing most of their food and in the altogether materials equally most of their exports consists of re-exports which are products made outside their territories.