Yermolovich T.

PhD Zhukova O.S.

PhD Petrachkova O.L.

Donetsk State University of Management

Great achievements of small countries

Analyzing the main tendencies of the last three decades it is necessary to mention some former depressed countries that have become rather successful exporters of manufactures. Five countries such as Brazil, Mexico, Hong Kong , South Korea and Singapore have called themselves the newly industrialized countries (NICs). Due to the acceptance of the concept that instead of withdrawing from the world economy they should turn it to their advantage , the NICs showed great success in expanding exports of diverse manufactures throughout the world. On the average , the NICs grew twice as quickly as the rich industrialized countries during the 1970s although Brazil as well as Mexico emphasize on exporting primary commodities such as coffee , soya and petroleum , all the NICs have significantly increased the share of manufactures in their total exports. In line with International Financial Statistics , the share of these countries in world exports rose from three percent in 1960s to seven percent in 1987 , and it led to a larger role of the NICs in the world economy than such countries as Sweden or Australia .

Some producers of manufactures in the rich industrialized counties worry about competition from producers in the NICs , while others accept this danger , but not in the near future , as the NICs have only seven percent of world trade in contrast , Japan’s share of world trade increased five times between 1950 and 1990, so the possibility of continued expansion of manufacturing production in the NICs and other LDCs should be taken seriously.

Although the LDCs are often thought to be countries exporting very labour-in-tensive low-quality manufactures such as cheap textiles , this stereotype is outdated. It is true that textiles are the largest manufactured commodity exported by the LDCs , but exports of both machinery and consumer goods are growing most rapidly . The LDCs are sure to become major producers of everything from cars to television sets.

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