Why do some countries grow faster than others? Innovative local companies play a key role.
The Good Men Project
Date: November 24, 2019
By: Chairil Abdini, Universitas Indonesia
South Korea, Taiwan, Malaysia and Indonesia all suffered from Japanese occupation during the second world war. But in the decades of peace that followed, South Korea and Taiwan revived, grew their economies and became rich. Their GDP per capita – what everyone in the country earns per year if income is equally distributed – are now on par with developed Western countries.
We are familiar with South Korean products, from cars and electronics to skincare. Taiwan exports refined oil, electronics and computers, such as Acer and Asus.
Malaysia, however, plateaued once it reached upper-middle income, a term the World Bank uses to define countries with a per capita GDP higher than US$1,045 but lower than US$12,736. In the meantime, Indonesia is still struggling in the lower-middle income level with GDP per capita below US$4,125. [FULL STORY]