Chapter 28

1. Chapter 28 Living in East Asia

2. Ch. 28 - Objectives • Discuss the type of governments and economies that East Asian’s have. • Identify the economic activities that play an important role in East Asia. • Describe how other countries in the region are challenging Japan’s economic dominance. • Explain how the countries in East Asia are economically interdependent.

3. Terms to Know • command economy • commune • cooperative • Asia-Pacific Economic Cooperation Group (APEC) • trade surplus • trade deficit • dissident • economic sanctions • World Trade Organization (WTO) • merchant marine

4. Drawing from Experience • Who makes the products you buy? • How do products from foreign countries compare in price to those made in the U.S.? • Does the place where a product is made influence your purchase? • This section focuses on the economy of East Asia.

5. Introduction • In the 1960s, many East Asian countries experienced huge economic growth. • However, in the late 1990s much of East Asia experienced an economic downturn. • With financial aid from Western countries and economic reforms, the region began a slow recovery by 2000. • What helped East Asia begin an economic recovery by 2000?

6. Political & Economic Systems • The economies of East Asia include market systems based on private control of business, • command systems controlled by governments, and • a mix of both systems.

7. Economies of East Asia Command/Communist Free Market Japan South Korea Taiwan • North Korea • Mongolia • China

8. Under market systems, • Japan, Taiwan, and South Korea • have become global economic powers. • China and Mongolia have recently switched from strict command systems to mixed systems. • North Korea remains under a command system. • What types of economic systems are found in East Asia?

9. Agriculture • East Asia economies have made a shift from rule-based agriculture to urban-based industry. • Agriculture is still very important to East Asian countries.

10. A. China • China has the most rural economy in the region. • In the 1950s, the communist government organized farmers into communes. • In these large farming communities, members shared the work and products equally, but • the government decided what methods the workers would use.

11. The results of this program were poor. • In the 1980s the government allowed farmers to own private gardens and sell their produce. • China now grows enough food to feed it’s people.

12. Mongolia • Most of Mongolia’s land is used for grazing. • Mongolia had a command economy (government controlled) until the early 1990s. • They moved toward a market economy (free) thereafter.

13. South Korea • People moving from rural to urban areas created a farm labor shortage. • Now South Korea depends upon the use of modern machinery.

14. North Korea • Farmers are organized into cooperatives – farms jointly owned by households. • The government controls production and distribution.

15. Japan & Taiwan • Both are island countries. • Both are mountainous. • They must use their farmland efficiently. • Both countries import food to feed their people.

16. Industry • Several East Asian countries have become important industrial centers in recent years.

17. Japan • After WWII, Japan became a global economic power. (With US help) • This was due to a highly skilled workforce and advanced technology. • The 1990s brought a downturn in their economy. • It was global.

18. South Korea • South Korea went from an agricultural to an industrial economy after the Korean War. • They too suffered from the global downturn in economies in the 1990s.

19. North Korea • North Korea relied on the Soviet Union (Russia) for economic aid until the breakup of the USSR. • North Korea was forced to begin trading with market systems. • In 2000, North and South Korea agreed to promote trade across the 38th parallel. • Families were allowed to visit across the border.

20. Taiwan • Taiwan is one of the world’s major trading nations. • By 2000, technology-based products were replacing traditional manufactured products as Taiwan’s major source of income.

21. In China Today • The government still controls major industries. • To improve the economy, China has adopted some features of a market economy. • The economic reforms have resulted in a steadily growing economy and an increase in the standard of living.

22. Question • What results have come from improved relations between North and South Korea?

23. Trade • Several East Asian countries have formed trading partnerships. • China, Japan, South Korea, Taiwan – • APEC… • Asia-Pacific Economic Cooperation Group.

24. APEC • This organization ensures that trade among its members is fair and efficient. • Still, trade disputes and political differences affect the region’s trade relations.

25. Japan • Japan depends on trade with other countries for its economic wellbeing. • Their government places high taxes on imports of finished goods. • This limits what other countries can sell to Japan. • These high taxes, combined with demand for Japanese products abroad, means…

26. Japan exports more than it imports, creating a • trade surplus. • Some of Japan’s trading partners have experienced… • trade deficits, • because they import more goods from Japan than they export to Japan.

27. China has modernized its economy. • It also has increased trade with market economies such as the U.S. • The U.S. opposes the treatment of dissidents, or citizens who oppose and speak out against government policies. • To influence China to change it’s policies, several countries have placed economic sanctions, or trade restrictions, on China.

28. The U.S. lifted some sanctions when China released some of its dissidents from prison. • In 2000, the U.S. granted China full trading privileges. • China was admitted to the WTO in 2001… • World Trade Organization, an international body that oversees trade agreements and settles trade disputes between countries.

29. China’s Mobile Execution Vans

30. China has the highest execution rate in the world.

31. Question • Why have several countries imposed economic sanctions on China?

32. Transportation • They are mostly concentrated in urban areas. • Japan, South Korea, Taiwan have nationwide railroad and highway networks. • Land transportation is not as well developed in other parts of East Asia.

33. In China, rivers are important routes from inland cities to seaports. • The Grand Canal of China is the world’s longest and oldest human-made waterway. • Merchant marine fleets – ships that transport goods – are vital to the region’s export trade.

34. Communication • Communist governments control communications and the news media in North Korea and China. • People in Japan, South Korea and Taiwan enjoy a free press and can access high-tech communications without government interference.

35. Question • Where are transportation and communication networks concentrated in East Asia? • answer: in urban areas

36. Key Points of Sec. 1 • East Asian economies include market and command systems, as well as a mix of both. • East Asia was once mainly agricultural, but trade and industry have brought prosperity and economic growth to most of its countries.

37. Most Chinese work in agricultural, although industry and commerce are thriving in certain areas as a result of government-sponsored economic reforms. • Japan is East Asia’s leading industrial country, followed by Taiwan and South Korea. • Trade and business investments bring together capitalist and communist countries in East Asia.

38. Ch. 28, Sec. 2 Objectives • Explain how East Asia’s industrialization and urbanization have affected the environment. • Identify the steps that East Asians are taking to solve environmental problems. • Examine the naturally occurring destructive forces that East Asia regularly faces.

39. Terms to Know • desertification • chlorofluorocarbons • aquaculture

40. Drawing from Experience • What environmental problems does your community face? • What steps are being taken to solve these problems? • In the last section you read about the economy of East Asia. • This section focuses on the environmental challenges facing the region.

41. Introduction • Modernization has brought a higher standard of living to East Asia. • It has also harmed the region’s environment. • Industrial growth, for example, has caused pollution. • East Asia also faces challenges from natural disaster.

42. Question • How has modernization affected East Asia?

43. The Power Dilemma (pg. 692) • East Asia’s economic growth has increased the region’s demand for power. • Some power comes from hydroelectric plants, but most comes from the burning of fossil fuels. • Burning these fuels has resulted in acid rain, pollution and global warming. • Several nations have begun to search for cleaner sources of power.

44. Japan, South Korea and Taiwan use nuclear power for 30% – 40% of their power needs. • Accidents in nuclear power plants have raised concerns about the safety of nuclear power. • Japan has developed alternatives to nuclear power and hydroelectric power and opened plants that generate power from wind and solar energy. • What is the source of most of East Asia’s power?

45. Environmental Concerns • East Asia faces serious environmental concerns. • China’s reliance on coal to run its industries has contributed to major air pollution. • China has had trouble disposing of waste products from sewers and factories.

46. Desertification • China has cleared thousands of acres of forests to meet the country’s need for lumber. • This deforestation has caused soil erosion and flooding. • Overgrazing has resulted in desertification, the process in which grasslands become drier and desert areas expand.

47. In response to these problems, China has started to plant trees along millions of acres of riverbanks. • It has begun a major dam construction to control flooding and • created wetland reserves and wildlife protection zones.

48. North Korea, South Korea and Taiwan also experience air and water pollution from industrial emissions. • Nuclear power provides some of South Korea’s power needs. • However the nation lacks safe disposal methods for nuclear wastes. • North Korea has nuclear power plants. • Still faces pollution from burning fossil fuels.

50. North Korea Nuclear Power