ABSTRACT
This chapter examines Japan's successors - the group of so-called 'newly industrialising' countries (NICs) or economies (NIEs) that have followed in the wake of Japan. Although this term has been used to refer, in particular, to the 'tiger economies' of East Asia - namely Hong Kong, South Korea, Singapore and Taiwan - it is applicable to a broader group of countries. NICs or NIEs are countries that have been successful, in a way that other developing countries have not, in breaking through into rapid economic growth. Their growth has had a profound effect on the world economy. In particular, these countries have provided a potent source of new, import competition for the advanced industrialised countries in certain important sectors of manufacturing. The World Bank has produced evidence to show that relationship exists between the adoption of outward-looking trade policies and economic performance in developing countries. However, policies which are essentially defensive measures delay or prevent adjustment from taking place.
