Does the rise of developing countries to become economic tigers, with well developed high technology industries, adversely affect developed countries?

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enotechris eNotes educator| Certified Educator

Level field competition creates the best results for the most people.  If a developing country can produce better, faster, cleaner, and cheaper goods and services than a developed country, the developed country can choose to compete and change the way its done things to the more efficient model, or move on to hopefully higher-level goods and services. Yes, jobs will be lost.  But new jobs are created.  That only happens, though, if individuals are free to invest and develop new goods and services. Unfortunately, the reverse can also happen if undue regulation stifles innovation -- an industry can be lost, and nothing evolves to replace it.  Great Britain certainly experienced this; hopefully the US will not be following that path.

With China and India industrializing and competing with the West, the standard of living will increase for those two countries, as will the demand for resources.  If the US is smart, they will do all they can by trading so that their rapid development continues.  When resources become scarce (or rather, expensive) new technologies create new sources of resources.




brettd eNotes educator| Certified Educator

Although the other side of this equation is that the manufacturing and high tech service industry that relocates with this kind of globalization hurts the job market in the developed world in some permanent ways.  In addition, as the demand increases in developing countries, so does their appetite for limited and insecure resources around the world, raising prices for commodities such as oil, gold, aluminum, etc. that developed economies have come to depend on.

Once could argue that the US is already fighting a war to help secure its access to Mideast oil. As more countries' economies develop a manufacturing base and a transportation base, the demand and competition for that oil becomes more intense.  It also adds to the worldwide carbon emissions output, which affects climate change.

pohnpei397 eNotes educator| Certified Educator

Economists would say that this might hurt developed countries in the short run but that it will help all countries in the long term.

In the short term, the rise of economic tigers will take jobs away from developed countries.  We can see this happening even today as jobs that were once done in the developed countries are outsourced to the developing world.

Economists say that in the long term this helps everyone because rising standards of living in the developing world will drive demand for high value-added goods and services that are more often produced in the developed world.

krishna-agrawala | Student

As growth in developing countries does not result in negative growth of developed countries, there is no absolute adverse affect on the developing countries. Yes, to the extent growth of developing countries is more than that of the developed countries, the advantage of greater economic power that developed countries enjoy definitely gets reduced. This, again causes no problem to the developed countries. It only puts a check on the feeling of superiority and perhaps arrogance that anyone with greater power is likely to develop.

In terms of economic prospects, the development of other countries definitely generates increased competitive pressure on any country. But at the same time this development also creates new markets as well as sources additional sources of supply. We talk today of the benefits of globalization for the whole world. This advantage of globalization is directly related to the growth and health of every country in the world. Thus development of any one country, developed, developing, or under developed, is beneficial for all other countries.

A very good example is given by Japan. The rapid growth of Japan after World War I, that enabled it to march ahead of many developed countries of that time to emerge as one of the most developed country of the world. But this development has not hurt any other country. If anything other countries have benefited by selling to as well as buying from Japan.

geeraph | Student

Thank You Mr. Pohnpei^^