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The category of '''newly industrialized country''' ('''NIC''') is a [[Socioeconomics|socioeconomic]] [[Categorization|classification]] applied to several countries around the world by [[political scientist]]s and [[economist]]s.
The category of '''newly industrialized country''' ('''NIC''') is a [[Socioeconomics|socioeconomic]] [[Categorization|classification]] applied to several countries around the world by [[political scientist]]s and [[economist]]s.


NICs are countries whose economies have not yet reached [[First World]] status but have, in a macroeconomic sense, outpaced their developing counterparts. Another characterization of NICs is that of nations undergoing rapid [[economic growth]] (usually [[export]]-oriented). Incipient or ongoing [[industrialization]] is an important indicator of a NIC. In many NICs, social upheaval can occur as primarily rural, or agricultural, populations migrate to the cities, where the growth of manufacturing concerns and [[factories]] can draw many thousands of laborers.
NICs are countries whose economies YOLO have not yet reached [[First World]] status but have, in a macroeconomic sense, outpaced their developing counterparts. Another characterization of NICs is that of nations undergoing rapid [[economic growth]] (usually [[export]]-oriented). Incipient or ongoing [[industrialization]] is an important indicator of a NIC. In many NICs, social upheaval can occur as primarily rural, or agricultural, populations migrate to the cities, where the growth of manufacturing concerns and [[factories]] can draw many thousands of laborers.


NICs usually share some other common features, including:
NICs usually share some other common features, including:

Revision as of 02:59, 20 July 2012

Newly industrialized countries as of 2011.

The category of newly industrialized country (NIC) is a socioeconomic classification applied to several countries around the world by political scientists and economists.

NICs are countries whose economies YOLO have not yet reached First World status but have, in a macroeconomic sense, outpaced their developing counterparts. Another characterization of NICs is that of nations undergoing rapid economic growth (usually export-oriented). Incipient or ongoing industrialization is an important indicator of a NIC. In many NICs, social upheaval can occur as primarily rural, or agricultural, populations migrate to the cities, where the growth of manufacturing concerns and factories can draw many thousands of laborers.

NICs usually share some other common features, including:

Historical context

The term began to be used circa 1970 when the Four Asian Tigers[1] of Hong Kong, Singapore, South Korea, and Taiwan rose to global prominence as NICs in the 1970s and 1980s, with exceptionally fast industrial growth since the 1960s; all four economies have since graduated into advanced economies and high-income economies. There is a clear distinction between these countries and the nations now considered to be NICs. In particular, the combination of an open political process, high GNI per capita, and a thriving, export-oriented economic policy has shown that these countries have now not only reached but surpassed the ranks of many developed countries.

All four economies are classified as High-income economies by the World Bank and Advanced economies by the International Monetary Fund (IMF) and U.S. Central Intelligence Agency (CIA). All of them, like Western European countries, possess Human Development Index considered as "very high" by the UN.

Current NICs

The following table presents the list of countries consistently considered NICs by different authors and experts.[2][3][4][5] Turkey and South Africa are classified as developed countries by the CIA.[6] Turkey was a founding member of the OECD in 1961 and Mexico joined in 1994. The G8+5 group is composed of the original G8 members in addition to China, India, Mexico, South Africa and Brazil.

Note: Green-colored cells indicate higher value or best performance in index, while yellow-colored cells indicate the opposite.

Region Country GDP (PPP)
(Billions of USD, 2011 World Bank)[7] 		GDP per capita (PPP)
(international dollars, 2011 World Bank)[8] 		Income inequality (GINI) 2008-09[9] [10] Human
Development
Index (HDI, 2011)[11] 		GDP (real) growth rate as of 2010 GDP (real) growth rate per capita as of 2008 Sources
Africa  South Africa 555,340 10,977 63.1 0.619 (medium) 2.78 1.29 [3][4][5]
North America  Mexico 1,659,016 15,121 48.3 0.770 (high) 5.52 0.75 [2][3][4][5]
South America  Brazil 2,309,138 11,845 54.7 0.718 (high) 7.49 4.06 [2][3][4][5]
Asia  China 11,316,224 8,394 45.3 0.687 (medium) 10.3 10.4 [3][4][5]
 India 4,469,763 3,703 32.5 0.547 (medium) 11.1 8.5 [3][4][5]
 Malaysia 447,595 15,578 46.2 0.761 (high) 7.16 2.86 [3][4][5]
 Philippines 393,987 4,111 43 0.644 (medium) 7.6 1.97 [2][3][4][5]
 Thailand 622,914 9,693 40 0.682 (medium) 7.8 1.84 [2][3][4][5]
Europe  Turkey[a] 1,054,560 14,615 39 0.699 (high) 9.0 -0.34 [3][4][5]

According to Goldman Sachs review of emerging economies, by 2050 the largest economies in the world will be as follows: China, USA, India, Brazil, and Mexico.[12]

For China and India, the immense population of these two nations (each with over 1.1 billion people as of January 2009) means that per capita income will remain low even if either economy surpasses that of the United States in overall GDP. When GDP per capita is calculated according to Purchasing Power Parity (PPP), this takes into account the lower costs of living in each newly industrialized country.

Brazil, China, India, Mexico and South Africa meet annually with the G8 countries to discuss financial topics and climate change, due to their economic importance in today's global market and environmental impact, in a group known as G8+5.[13] This group is expected to be expanded to G14 by adding Egypt alongside the five forementioned countries.[14]

Other NICs

Each author set a list of countries accordingly to the methods or type of economic analysis. This sometimes results in a country being mentioned as NIC in a particular work, but that is rarely considered as such by the other authors. This is the case of nations such as Argentina, Chile, Egypt, Indonesia and Russia.[2]

Brief economic analysis

NICs usually benefit from comparatively low labor costs, which translates into lower input prices for suppliers. As a result, it is often easier for producers in NICs to outperform and outproduce factories in developed countries, where the cost of living is higher, and labor unions and other organizations have more political sway.

This comparative advantage is often criticized by advocates of the fair trade movement.

Issues

Economic freedom is not always associated with political freedom in nations such as the People's Republic of China, where Internet censorship and human rights violations are common.[15] The case is diametrically opposite for India. While being a liberal democracy throughout its post-colonial history, India has been widely criticized for its inefficient government and widespread corruption.[citation needed] Thus, while in China where political freedoms remain tight, the average Chinese citizen enjoys a higher standard of living than his or her counterpart in India.[16]

South Africa faces an influx of immigrants from countries such as Zimbabwe.[citation needed]

Mexico's economic growth is threatened by civil strife in much of the country.[17]

See also

Groupings:

Notes

  1. ^ Turkey is physiographically considered a transcontinental country, mostly in Western Asia, partly in Eastern Europe. However, in terms of geopolitical regions, it is considered to be in Europe.

References

  1. ^ Japan and the Newly Industrialized Economies
  2. ^ a b c d e f Paweł Bożyk (2006). "Newly Industrialized Countries". Globalization and the Transformation of Foreign Economic Policy. Ashgate Publishing, Ltd. p. 164. ISBN 0-7546-4638-6.
  3. ^ a b c d e f g h i j Mauro F. Guillén (2003). "Multinationals, Ideology, and Organized Labor". The Limits of Convergence. Princeton University Press. pp. 126 (Table 5.1). ISBN 0-691-11633-4.
  4. ^ a b c d e f g h i j David Waugh (3rd edition 2000). "Manufacturing industries (chapter 19), World development (chapter 22)". Geography, An Integrated Approach. Nelson Thornes Ltd. pp. 563, 576–579, 633, and 640. ISBN 0-17-444706-X. {{cite book}}: Check date values in: |year= (help)
  5. ^ a b c d e f g h i j N. Gregory Mankiw (4th Edition 2007). Principles of Economics. ISBN 0-324-22472-9. {{cite book}}: Check date values in: |year= (help)
  6. ^ CIA World Factbook
  7. ^ "Report for Selected Countries and Subjects". World Economic Outlook. International Monetary Fund. 2011. Retrieved February 25, 2012. {{cite web}}: Unknown parameter |month= ignored (help)
  8. ^ Data refer mostly to the year 2011. World Economic Outlook, Sep 2011, International Monetary Fund. Accessed on April 11, 2012.
  9. ^ "GINI Index Data Table". World Bank. Retrieved 4 April 2012.
  10. ^ Note: The higher the figure, the higher the inequality.
  11. ^ United Nations report [1]
  12. ^ [2]
  13. ^ G8 Structure and activities
  14. ^ " France invites Egypt to join G14"[dead link]
  15. ^ http://www.amnestyusa.org/china/page.do?id=1011134
  16. ^ Meredith, R (2008) The Elephant and the Dragon: The Rise of India and China and What it Means for All of Us, "W.W Norton and Company" ISBN 978-0-393-33193-6
  17. ^ http://knowledge.wharton.upenn.edu/article.cfm?articleid=2695
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