In the 1970’s and 1920’s Singapore and Hong Kong were considered newly industrialized countries. To have a market economy there must be “a division of labor in which the prices of goods and services are determined in a free price system set by supply and demand” (Altvater, 1993). Now Singapore and Hong Kong are considered to have a market economy. The methods applied were to bring about industrial stability by dismantling the communist party and fostering discipline in employer-employee relations, to attract multi-nationals companies with existing technologies that were looking for new opportunities to expand globally, and to maximize the potential of its people so they can contribute the most to economic growth of the country (“How Singapore Came,” 2010).
Hong Kong and Singapore were able to attract the necessary capital, technology and training necessary for a free market economy. They did this by dismantling communist party and by recognizing property rights of individuals. They also fostered the discipline of employer-employee relations. Without all of these aspects there would be no free market systems. By implementing these strategies, they have been able to make leaps and bounds in their industries.
World Bank,. (2011). About us. Retrieved from http://go.worldbank.org/5TU8IISQ50 Altvater, E....