Comparative characteristics of selected Asian countries
Gross Domestic Product
An analysis spanning fifty years of gross domestic product (GDP) levels reveals the presence of specific activities that contribute to fluctuations in economic development on the Asian continent. Numerous armed conflicts have particularly affected the economy of the United Arab Emirates and Kuwait. Wars with Israel (1973), Iraq (1973, 1990–1991) and the civil war in Lebanon (1976–1979) resulted in a slowdown in economic development and disputes within the Arab League. A similar situation also befell the economies of China and Pakistan. The East Asian country has been involved in numerous confrontations, particularly with Vietnam and Taiwan, in their pursuit of gaining control over strategic territories. Pakistani authorities have been engaged in multiple conflicts with India, notably in 1971, 1984, and 1999. Until the mid-2000s, the economically stable United Arab Emirates had achieved the highest level of GDP per capita among the selected group. Since 2007, the position of the leader has been taken over by another Asian Tiger, developing in the area of services and production — Singapore. The financial crisis (2007–2009) was associated with significant losses primarily for the countries of the Middle East. Within two years, the GDP per capita of the United Arab Emirates and Kuwait experienced a decline of 23.81% and 15.47% respectively. For comparison, Singapore in this period recorded a decrease in GDP per capita by $2,760.76 (6.36%). In the case of the discussed city-state and the United Arab Emirates, an upward trend can be observed following the financial crisis, which continued until the COVID-19 pandemic in 2020. On the other hand, China and Pakistan did not experience significant fluctuations in purchasing power parity per capita over the entire fifty-year period.
Export
Figure 2 presents the level of exports per capita over 50 years. The chart shows that Singapore is the most open to international trade. This is related to the pro-development policies of the Asian Tigers and foreign investment supporting the booming economy. The Southeast Asian country is characterised primarily by exports of electronic products and petroleum, as well as services related to transportation and banking. The United Arab Emirates and Kuwait show similar relationships. Declines in sales of goods and services are related to the numerous conflicts in the Middle East. In addition, they operate in similar trade areas. Their exports are mainly based on oil, natural gas and other mineral resources. The charts for China and Pakistan are similar, but the sectors in which they operate are markedly different. The East Asian country is characterised by high sales of telecommunications goods, machinery and auto parts. Pakistan, on the other hand, exports primarily apparel products and textiles.
Import
The high economic level of Singapore is also shown by imports of goods. The years 1980–1990 are the beginnings of the development of the countries belonging to it to Asian Tigers. Along with the increasing need to transform the manufacturing sector and expand activities in the high-tech area, the need for importing goods and services from abroad has also increased. As Singapore’s economy is heavily geared towards the tech sector, the state primarily purchases electronics and transportation services. In the case of the United Arab Emirates and Kuwait, the level of imports is highly related to the political situation in the Middle East. The increases observed in 1970–2000 correspond to the ongoing armed conflicts in the Arabian Peninsula. The year 1971 is particularly noteworthy. This period is the only moment when Kuwait reaches the highest level of imports per capita of the entire group. It is caused by increased military demand caused by the war with Iraq, which does not recognize the emirate’s independence. In the 21st century, the United Arab Emirates and Kuwait mainly buy goods and services from the transport sector and electronics. The results obtained for China and Pakistan indicate a slight upward trend in the demand for foreign products. The economy of the People’s Republic of China imports electronics and petroleum oils. On the other hand, underdeveloped Pakistan mainly purchases oil and iron waste.
Agriculture, hunting, forestry and fishing
The problem faced by the countries of the Middle East is the low level of agriculture, hunting, forestry and fishing. Due to unfavourable climatic conditions and infertile soil, conducting business on a global scale in this economic area is not feasible, despite its high technological development. This is particularly evident in the case of the United Arab Emirates. The scarcity of water resources, limited land for cultivation, and high production costs led to a significant decline in the value of production during the years 2000–2010. The low share of agricultural and fishing areas is also noticeable in the economies of Kuwait and Singapore, the main reasons for which are the small area of arable land, limited fish production and unfavourable climate. For China and Pakistan, an upward trend in the value of this sector can be observed. The People’s Republic of China strives to achieve food security through modernization of agriculture with advanced technological solutions. In turn, for Pakistan, the area related to plant cultivation and animal husbandry plays a greater role in the economy. Data from 2020 indicate that over 23% of GDP comes from agricultural activities in general. It is mainly the production of sugar cane, wheat and rice.
Mining, manufacturing and utilities
Over the past fifty years, the area of mining, manufacturing and utilities has undergone a dramatic transformation on the Asian continent. In 1970, two countries from the analysed group achieved the highest values in terms of mineral extraction and supplies of raw materials. The United Arab Emirates generated approximately $21.1 billion, while Kuwait generated around $41.6 billion, resulting in per capita amounts of nearly $90,000 and $56,000, respectively. The occurrence of numerous armed conflicts and the dynamic growth of the population led to the equalisation of the parameter level for the three countries. In 2020, Singapore achieved the highest value of generated goods from the entire group for the first time. In the world ranking, he was ranked ninth with a score of over $13,000. Two countries characterised by a much larger population, China and Pakistan, were ranked 46th and 177th.
Transport and storage
The advancement of technology, industry, and trade is intricately linked with the transport and storage sector. Singapore has a clear upward trend. The pro-investment approach of the Asian Tigers allowed for the modernization of technology and the expansion of the service industry. Only in 2009 (global financial crisis) and 2020 (COVID-19 pandemic) a significant decrease in the value generated by the transport area is visible. In the case of the United Arab Emirates and Kuwait, the level of the trade parameter is related to the then-current military conflicts. The observed reductions, particularly in 1975 and 1991, can be attributed to various factors, including political conflicts such as those involving Lebanon and Iraq. The years 2000–2009 are particularly noteworthy. Kuwait has witnessed the establishment of Jazeera Airways, a new airline, and CityBus, the first public transport provider. These developments have played a significant role in the notable increase in traffic within the country. In turn, China, compared to the entire group of countries surveyed, is average. In 2020, the estimated value of activities within the transport sector exceeded $1.3 trillion. Considering the population of approximately 1.4 billion in the East Asian country, this amounts to an average of around $1,131 per person. For comparison, it is $580 less than Kuwait, $2,477 from the United Arab Emirates and as much as $4,559 from Singapore. Among the five analysed countries, Pakistan is the worst. The main reasons for such a low level of transport are, among others: outdated management structure, neglect of the development of high-capacity transport, and incompetent land development.
Wholesale, retail trade, restaurants and hotels
Analysis of wholesale, retail trade, restaurants and hotels shows a strong correlation between the level of this factor and the social and economic situation. The declining trend evident for the United Arab Emirates and Kuwait is associated with a decisively growing population. Over the course of fifty years, the population of the countries has witnessed significant increases of 4,117% and 474%, respectively. In comparison, the total value of this sector in the mentioned countries experienced growth of 1,169% in UAE and 236% in Kuwait. On the other hand, when analysing the data for China and Singapore, it becomes evident that the growth in the size of the trade and hospitality services sector surpasses the population growth rate. For the East Asian country, this is an increase of 8 100% in the value of the economic sector against a 74% increase in population. In the case of the Southeast Asian country, the value of the parameters witnessed remarkable increases of 1,791% and 182% respectively. In the same period, Pakistan’s commercial services sector grew more than eight times, and two and a half times in per capita terms.
Government spending
Analysis of the level of government spending allows us to assess the development of the country’s public sector and infer the political situation in the region. Based on the data of Singapore, China and Pakistan, it is possible to infer a stable upward trend in the general government expenditure per capita index without major declines. The situation is different for the two Emirati countries. In the case of Kuwait, the period from 1990 to 2000 holds particular significance. In the early 1990s, one can see a sharp increase in government spending per capita, which more than tripled. The reason for this huge change was the outbreak of the Gulf War, which involved investment in the military area. Other notable jumps were related to, among other things: preparations for Operation Vigilant Warrior (1994) and Operation Desert Thunder (1998) and the establishment of the organisation providing Gulfsat satellite communications services. In contrast, two periods of serious growth in the level of government spending can be marked for the United Arab Emirates: 1972 — the effect of the creation of a union between the six emirates in 1971, and 1981 — the funding of Iraq in its war with Iran.
Household consumption expenditure
The consumer spending chart shows that for Singapore, China and Pakistan, household-generated costs are growing at a higher rate than the population. Furthermore, the data does not indicate the occurrence of any significant events that could cause substantial fluctuations in the level of the parameter (except in 2020 for the Southeast Asian country). In contrast, definite differences are noticeable for Middle Eastern countries. In the case of the United Arab Emirates, two sharp declines in 1974 and 2009 are particularly noticeable. The first of these is related to high levels of inflation caused, among other things, by the oil embargo following the outbreak of the Yom Kippur War. The cause of the second was the global financial crisis. Noticeable changes in the volume of consumer spending between 1982 and 2001 in Kuwait were somewhat related to armed conflicts in the Middle East. The noticeable increases came in the post-war era. In contrast, the stock market turmoil of 2007–2009 caused household costs to fall to around $12,410 per capita.
Foreign direct investment
Based on per capita foreign direct investment data, it can indeed be inferred that Singapore’s economy is the most prosperous among the analysed group. The stability of its political situation and well-developed infrastructure are key factors contributing to this economic prosperity. Singapore attracts significant investments, particularly in the finance, trade, and business services sectors, which play a vital role in driving the country’s economic growth. In 2019, Singapore received the highest value of inflows with $18,443.54 per capita. The United States, the Cayman Islands, the British Virgin Islands, Japan, and the United Kingdom are among the largest investors in the Singaporean economy. On the other hand, the remaining countries in the analysis show lower levels of foreign funding per capita. The United Arab Emirates ranks second in this regard, with investments primarily focused on wholesale and retail trade, financial services, and real estate sectors. Switzerland, the United Kingdom, India, the United States and France are among the major investors in ZEA. It is worth noting that there was a noticeable increase in outlays between 2004 and 2007, primarily driven by cross-border mergers and acquisitions in the construction sector. With the exception of the East Asian country in 2011, Kuwait, China, and Pakistan did not experience notable fluctuations in foreign direct investment throughout the analysed period.
