Southeast Asia The Economy and Environment The Economy

Southeast Asia The Economy and Environment

The Economy of Southeast Asia Fertile plains and river valleys major source of agriculture Agriculture is the leading economic activity Rice main crop Thailand Vietnam world’s top exporters of rice 3/4 of all workers in Laos, Cambodia farmers Flooded rivers irrigate paddies (flooded fields) Grow two crops a year, little modern machinery used Rubber is a cash crop in Thailand, Indonesia and Malaysia Sugarcane, coffee and spices other regional exports

The Economy of Southeast Asia Many species of fish found in rivers across region Fish farming important part of economy Southeast Asians consume twice the world average of seafood Overfishing is a concern

The Economy of Southeast Asia Forests and Mines Major industry on mainland Myanmar is the major world supplier of teakwood Industry has contributed to deforestation Mineral deposits Malaysia, Indonesia, Thailand Malaysia world leading exporter of tin Oil deposits Malaysia, Brunei, Indonesia Oil accounts for nearly all of Brunei’s export income Indonesia is the regions largest petroleum exporter Pipeline construction growth industry

The Economy of Southeast Asia Papua’s Resources q Indonesia controls western half of New Guinea q Government has set area aside for resource development q Timber and mineral deposits abundant q Foreign countries come in and extract resources but do little to invest in health, education or public services

The Economy of Southeast Asia Industry Rapidly growing, people leaving farming for urban manufacturing jobs During last part of 20 th century there was an economic boom based on natural resources, cheap labor and foreign investment Debts and financial corruption led to economic crisis in 1997 Countries have had to balance growth with economic responsibility

The Economy of Southeast Asia Singapore SE Asia’s most developed economy Ports, harbors and international trading links make it a major manufacturing center Free Trade Zone established 1965, attracted foreign investment Moved into oil refining, electronics To keep skilled workers country has invested in education Malaysia diversified economy, Rubber and palm tree oil major exports, also manufactures electronics and building supplies Developed heavy industry (steel making, auto assembly) World’s leading exporter of microchips

The Economy of Southeast Asia Less Industrialized Countries Indonesia- late 1990’s political instability affected economic growth Major supplier of raw materials for world markets Labor force lacks skills for industrialization, needs foreign aid for development Laos, Cambodia, Vietnam, Myanmar developing even slower Wars, political changes keeping countries from developing Laos landlocked, remains largely agricultural Communist policies to collectivize agriculture reduces incentive to get ahead Rich in mineral resources, lacks modern technology to develop Vietnam growing population, inadequate infrastructure slow development Literate population shows potential for growth Natural beauty of coastline potential for tourism Cambodia political problems slowed growth, lack of skilled workers Myanmar self imposed isolation prevents economic progress

The Economy of Southeast Asia Physical geography affects transportation and communication across region Water transportation the most common way to move people and goods Shipping is an important industry in the region Quality of land transportation depends on the degree of development in the country More successful economies have better transportation networks Highways and railroads generally link major cities The physical geography of rural areas make building transportation networks difficult

The Economy of Southeast Asia Communication networks depend on level of industrialization Singapore most well developed communication networks Use of the internet and wireless communication is growing Governments typically control radio and TV

Living in Southeast Asia Countries in SE Asia are becoming more interdependent Organizations formed to promote trade, development and economic stability Seen as an alternative to foreign investment Asian Development Bank (ADB), Association of Southeast Asian Nations (ASEAN) ADB provides loans to support development for agriculture, transportation and industrial projects ASEAN’s main goals to promote economic growth, cooperation among region’s countries (free trade, reduction of tariffs) Members try to balance diverse nation goals with regional growth 2004 signed a trade agreement with Chinese ASEAN member countries are working to form a common economic market (like the EU) by 2015