Newly Industrialized Countries (NIS)

This 1st subgroup includes young states, which in terms of socio-economic development are closely close to the group of developed countries of the world. They came to the forefront of the world economy in the 60-80s as a result of the placement in them by large transnational companies of a number of relatively labor-intensive, although far from the most complex, mass production.

Each of the countries of this subgroup has passed a rather complex and peculiar path of socio-economic development.

For example, the early starting period of their socio-economic development was a characteristic and important feature of the NIS of Latin America. All four countries that received the status of NIS  (Argentina, Brazil, Mexico and Chile) gained independence before 1825, and despite the continuing specialization of raw materials in MRI in the XIX century. began to create the foundations of the factory industry. These countries became very attractive for foreign capital, as they have a large territory, population, rich and diverse natural resources. The governments of these countries have long pursued policies, aimed at improving the educational level and qualifications of the able-bodied population.

All these factors contributed to the creation in these countries by foreign companies of mass production of products of electrical, electronic, automotive and other industries.

In many ways, similar processes for the formation of industry, but under the conditions of British and Japanese colonial rule, took place in Hong Kong and South Korea. Thus, a qualitative leap in the development of the industrial sector became possible due to the creation in previous years of solid material prerequisites and large foreign investments.

In the global economy, the importance of SOUTHEAST Asian NIEs is growing rapidly. These include: Malaysia, Thailand, Indonesia and the Philippines (most recently they were joined by the NIS of East Asia – the Republic of Korea, Taiwan and Singapore, which in 1995 became a group of highly developed countries).

Among the factors ensuring successful progress in the industrialization of NIS in Southeast Asia, a significant role was played by external conditions associated with the expansion of foreign capital. Statistics show that for many years these countries were included in the zone of the most active penetration of foreign capital. At the same time, the geographical distribution of investments and their size were significantly influenced by political motives. For example, South Korea and Taiwan enjoyed special favor of the United States, which found themselves in the sphere of military and strategic interests of the United States and received several hundred million dollars for their compliance in the deployment of military facilities on the territory of these countries in the account of subsidies and loans.

Most countries in East and South-East Asia have adopted  a balanced growth economic model that assumes: first, a consistent shift in development priorities from agriculture to light industry, then to heavy industry and finally to precision technology; secondly, the transition from labor-intensive to capital-intensive, and then to knowledge-intensive production; thirdly, the transition from the policy of import substitution to the policy of export expansion; Fourth, stimulating market relations at all stages of economic reform.

All NIS are characterized by: a rather diverse sectoral structure of the economy; the widespread use of industrial forms of labor; a large proportion of means of production in industrial production; export of manufacturing products.

NIS owns a special industrial niche in the international division of labor, it is determined by the production of individual products of light industry, metal-intensive machine-building products, as well as microelectronic equipment of a limited range of technologies that have already become widespread in post-industrial countries.