Pre-1945 Asia Economy

By | July 25, 2008

The economy of Asia comprises more than 4 billion people (60% of the world population), living in 46 different states. Six further states lie partly in Asia, but are considered to belong to another region economically and politically. As in all world regions, the wealth of Asia differs widely between, and within, states. This is due to its vast size, meaning a huge range of differing cultures, environments, historical ties and government systems. The greatest economies in Asia in terms of nominal GDP are Japan, China and India. The economies extend from Japan, like economy in the second place largest of the world by the nominal GDP, Cambodia as one of the poorest. In terms of GDP per purchasing power parity, China has the greatest economy in Asia and the second greater economy in the world, follow-up of Japan and India like economies of the world third and larger fourth respectively. South Korea also has one of the greatest economies in the world being 10th the larger in the world by the nominal GDP. One expects that South Korea have a greater economy than France from here 2020. Before the Second World War, the major part of Asia was according to the colonial rule. Only relatively few states managed to remain independent vis-à-vis with the constant pressure exerted by power of European. Such examples are Siam and Japan. Japan in particular managed to develop its economy due to a reform at the 19th century.

The reform was complete and is known today like Meiji Restoration. The Japanese economy continued to develop well in the 20th century and its economic growth created various lacks of resources essential with the economic growth. Consequently, the Japanese expansion started with a great area of Korea and China was annexed and thus, making it possible to the Japanese to fix the strategic resources. At the same time, the Southeast Asia was to thrive due to the trade and the introduction of various news technologies of this time. The volume of exchanges continued to increase with the opening of Suez Canal in the 1860s. Manila had its gallion or Manila gallion wherein products from the Philippines were traded to Europe. The Philippines was the first Asian country to trade with Latin America via Acapulco. Tobacco, coconut, corn, and sugar trade was the most in demand during that time. Singapore, founded in 1819, rose to prominence as trade between the east and the west increased at an incredible rate. The British colony of Malaya, now area of Malaysia, was the largest producer of the world of tin and rubber.

The Indies is Dutch, Indonesia, in addition, was now known for its production of spices. The British and the Netherlander created their own trading companies to control their commercial trade flow in Asia. The English created British East India Company while the Netherlander formed Dutch East India Company. The two companies maintained the monopolies commercial their respective colonies. In 1908, the crude oil was discovered the first time in Persia, day modern Iran. Afterwards, much of oil reservoirs were discovered and it was learned later than the Middle East has the greatest oil actions of the world. This returned the rules of the very rich Arab nations although the socio-economic development in this area trailed behind. At the beginning of the Thirties, the world underwent a total economic depression, now known under the name of great depression. Asia was not saved, and suffered the same pain as Europe and the United States. The volume of exchanges clearly decreased all around Asia and indeed the world. With a demand for fall, prices of various goods starting to fall and promote people have the country and the Foreigners impoverished in the same way. In 1941, Japan Malaya invaded and thus began the Second World War in Asia.

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