'Factors behind Economic Growth in Hong Kong and Singapore Essay\r'

'There ar many a(prenominal) similarities between Hong Kong and Singapore. Both countries enjoy high scotch growth rates for the past three decades, they argon known as â€Å"East Asian Tigers” because they make a transition from poverty to Newly change Economies (NIE’s) in a very(prenominal) short consequence of time. Both Hong Kong and Singapore were British colonies with twain sanctioned and administrative systems of their former colonial powers. They atomic number 18 the busiest ports in the world in terms of throughputs.\r\nThey have climbed the industrial ladder and argon now important international financial centers because of their reliance on trade since 1960’s (Kim. t al 1994). In addition both cities are densely populated since unload is infrequent and dirt together with property prices is very high. These devil cities are known for being fee traders with hardly a(prenominal) restrictions on trade and capital flows which many a times are Gross Domestic merchandise (GDP). In Hong Kong the utter owns all the play whereas in Singapore the state owns four fifths of the total land. thus both cities capture economic rent earlier by nationalizing land and leasing it out.\r\nWhile the state owns more of the land in Singapore and the sole property owner in Hong Kong, the inefficiencies that could result from state ownership are taken care of through the creation of markets for state, land and property leases. Meanwhile the public leasehold system where the state is the major role player in land use, planning and resource allocation works very well in both cities since the public empyrean institutions of both are efficient and non-corrupt. These institutions in both countries benefit from adequate checks and balances, merit-based recruitment and pay scales which are high enough to reduce the temptation to corruption.\r\nIn conclusion, there economies are widely believed to be the nigh economical free in the world ar e these economic freedom emanates from the governments â€Å"hands-off policy” which allows for tractability and renovation of any given industry in a very short time. Both countries alike have very little available land and very few natural resources therefore import close to of their food and raw materials equally most of their exports consists of re-exports which are products made outside their territories.\r\n'