Newly Industrialized Country (NIC)
Candlefocus EditorWhile metrics such as GDP, unemployment figures and the type of industries present are used to measure the level of industrialization, these metrics alone are not enough to measure the depth of structural and institutional change as a result of industrialization. Thus, it is difficult to draw up an exact classification of countries which should be considered as Newly Industrialized Countries.
Notably, countries in South East Asia have established a dominant position in this growing global economy. The four Asian Tigers – Hong Kong, South Korea, Taiwan and Singapore– have been particularly successful in making the transition from developing countries to Newly Industrialized Countries. Over the past few decades, these four nations have achieved remarkable economic growth and have become some of the most prominent economic powers in the world with rapidly growing jobs sectors in the service and technology industries, high levels of savings, technological advancements and rapid increases in education levels.
Other countries which have followed this path include Egypt, Turkey, India, Brazil, Argentina and Mexico. These nations have taken steps to liberalize their economies, develop international trade links and promote investment and have been able, over time, to substantially increase levels of growth, reduce poverty and improve overall standards of living.
For highly industrialized countries these Newly Industrialized Countries present both opportunity and challenge. On the one hand, NICs can outsource certain services to these countries in order to reduce cost and increase efficiency. At the same time, highly developed countries must monitor the developments in these countries, as the emergence and development of NICs in the global market, can sometimes lead to increased competition in their own markets.
In conclusion, Newly Industrialized Countries have made considerable strides in industrialization, resulting in rapid economic growth and improved standards of living. As a result, an increasing number of countries are reaching NIC status and are seeking out further opportunities. For advanced countries, the emergence of these countries offers both an opportunity and a challenge.