East Asia has been the most dynamic region in the world economy over the past several decades. Since 1979, China has enjoyed a nearly double-digit average rate of economic growth, much of it spurred by domestic market reforms and China's growing involvement in international trade. China has become a major destination for foreign direct investment. Growth has, however, been uneven, with the increasingly prosperous regions along China's southern coast outpacing rural inland areas. Economic development has brought other problems to China as well, including severe pollution, income inequalities, rising crime, growing unemployment and potentially serious resource constraints, especially in the areas of food, water and energy. Still, economic development has lifted tens of millions of Chinese out of poverty in recent years.
Hong Kong, long a British colony, recently came under the renewed sovereignty of the People's Republic of China. Hong Kong has a vibrant economy based upon finance and commerce. Income levels stand above those of some European countries. Under the terms of Hong Kong's return to China, its economy will continue to reflect its distinct laissez faire tradition and most governance will remain local. Although Hong Kong's economy has suffered as a result of the East Asian financial crisis, it continues to posses many strengths and stands poised to serve a key role in mediating China's trade and investment ties with the outside world.
Thailand compiled an impressive record of economic development during the eighties and nineties, up until the summer of 1997, when its currency, the Thai Baht, plummeted in value. Since then, Thailand has struggled, under the guidance of the International Monetary Fund, to escape from a severe and lasting economic downturn. Thailand's troubles triggered a region-wide financial crisis that has called into question the continuing survival and success of the so-called "East Asian Model" of economic development.
Links to Images of China, Hong
Kong and Thailand