Case Studies in applied Economics

The document titled “Discover the Big Winners of Models of Transition Peculiarly in some Asian Countries: Case of Studies Applied Economy” provides an in-depth analysis of the economic transitions experienced by various Asian nations, particularly focusing on China, Vietnam, Myanmar, and countries in Central Asia and Indo-Chine Française.

It begins by discussing the gradual evolution of entrepreneurship in these regions, where it initially served as a complement to state enterprises rather than a replacement. The text references the insights of Leo Paul Dana, who argues that young intellectuals in these countries concluded that a market economy, supported by a private small business sector, could expedite the benefits sought by socialist ideals.

The document highlights the historical context of Vietnam’s economic conditions in 1989, noting significant infrastructural deficiencies such as unreliable electrical systems and limited access to technology. It describes the banking system’s challenges due to an embargo, which restricted financial transfers and favored state-owned firms. The introduction of a commercial banking decree in 1990 marked a pivotal moment in establishing a more open banking environment.

The analysis further explores the economic growth rates in the region, citing actual growth figures that exceeded projections during the early 1990s. It emphasizes that classical growth rates alone are insufficient for least developed countries to transition into developing nations. Instead, it advocates for comprehensive strategies that include globalization policies and significant investments to stimulate industrial growth.

The document identifies China and Vietnam as the primary success stories of the transition era, where private initiatives have become integral to economic development. In contrast, it notes that Myanmar, despite being a leading rice exporter, has struggled with its transition due to a lack of comprehensive economic reforms and reliance on agriculture.

The text also discusses the concept of harmony between state-owned enterprises and private initiatives, particularly in Vietnam’s Doi-Moi Model, which emphasizes renovation without major political reform. It contrasts this with the experiences of other countries that adopted rapid transition strategies, which often resulted in economic shocks and instability.

In conclusion, the document provides general recommendations for improving economic transitions in the region. It suggests that countries should prioritize creating an environment conducive to private entrepreneurship while maintaining a balance with state enterprises. It underscores the need for strategic planning and investment to ensure sustainable economic growth and development in the face of globalization and market challenges.