View source for Finance:Newly industrialized country

{{short description|Socioeconomic classification}}
The category of '''newly industrialized country''' ('''NIC'''), '''newly industrialized economy''' ('''NIE''')<ref name="factbook"/> or '''middle income country'''<ref>{{cite book|title=Essentials of Comparative Politics|chapter=Glossary|page=A-19|author=Patrick H. O’Neil|publisher=W. W. Norton & Company|year=2018|edition=6th|isbn=978-0-393-62458-8}}</ref> is a socioeconomic [[Categorization|classification]] applied to several countries around the world by political scientists and [[Social:Economist|economist]]s. They represent a subset of [[Finance:Developing country|developing countries]] whose economic growth is much higher than that of other developing countries; and where the social consequences of industrialization, such as [[Earth:Urbanization|urbanization]], are reorganizing society.

== Definition ==
NICs are countries whose economies have not yet reached a [[Finance:Developed country|developed country]]'s status but have, in a macroeconomic sense, outpaced their developing counterparts. Such countries are still considered developing nations and only differ from other developing nations in the rate at which an NIC's growth is much higher over a shorter allotted time period compared to other developing nations.<ref name="c10">{{cite book|title=Essentials of Comparative Politics|chapter=Chapter 10: Developing Countries|pages=304–337|author=Patrick H. O’Neil|publisher=W. W. Norton & Company|year=2018|edition=6th|isbn=978-0-393-62458-8}}</ref> Another characterization of NICs is that of countries undergoing rapid [[Finance:Economic growth|economic growth]] (usually [[Finance:Export|export]]-oriented).<ref>{{cite journal|url=https://www.imf.org/external/pubs/ft/wp/2016/wp16207.pdf|title=The Role of Newly Industrialized Economies in Global Value Chains|journal=IMF Working Paper|publisher=International Monetary Fund|author=Dominik Boddin|date=October 2016|access-date=28 September 2020}}</ref> Incipient or ongoing industrialization is an important indicator of an NIC. 

== Characteristics of newly industrialized countries ==
Newly industrialized countries can bring about an increase of stabilization in a country's social and economic status, allowing the people living in these nations to begin to experience better living conditions and better lifestyles. Another characteristic that appears in newly industrialized countries is the further development in government structures, such as democracy, the rule of law, and less corruption. Other such examples of a better lifestyle people living in such countries can experience are better transportation, electricity, and better access to water, compared to other developing countries and low infant mortality rate.

== Historical context ==
The term came into use around 1970, when the Four Asian Tigers<ref>{{cite web|url=http://www.photius.com/countries/japan/government/japan_government_newly_industrialized~447.html|title=Japan Newly Industrialized Economies|website=photius.com|date=January 1994}}</ref> of Taiwan, [[Place:Singapore|Singapore]], [[Place:Hong Kong|Hong Kong]] and {{wipe|South Korea}} rose to become globally competitive in science, technological innovation and economic prosperity as well as NICs in the 1970s and 1980s, with exceptionally fast industrial growth since the 1960s; all four countries having since graduated into high-tech industrialized [[Finance:Developed country|developed countries]] with [[Finance:World Bank high-income economy|wealthy high-income economies]]. There is a clear distinction between these countries and the countries now considered NICs. In particular, the combination of an open political process, high GNI per capita, and a thriving, export-oriented economic policy has shown that these East Asian economic tiger countries have roughly come to a match with [[Finance:Developed country|developed countries]] as those of [[Earth:Europe|Western Europe]] as well {{wipe|Canada}}, {{wipe|Japan}}, {{wipe|Australia}}, [[Earth:New Zealand|New Zealand]] and the {{wipe|United States}}.

All four countries are classified as [[Finance:World Bank high-income economy|high-income economies]] by the [[Organization:World Bank|World Bank]] and [[Finance:Developed country#IMF advanced economies|developed countries]] by the [[Organization:International Monetary Fund|International Monetary Fund]] (IMF) and U.S. Central Intelligence Agency (CIA). All of the Four Asian Tigers, like [[Earth:Europe|Western European]] countries, have a [[Engineering:Human Development Index|Human Development Index]] considered "very high" by the {{wipe|United Nations}}.

== Current ==
The table below presents the list of countries consistently considered NICs by different authors and experts.<ref name=Globalization>{{cite book|url=https://books.google.com/books?id=iuHsIuez5qoC|title=Globalization and the Transformation of Foreign Economic Policy|author=Paweł Bożyk|chapter=Newly Industrialized Countries|page=164|publisher=Ashgate Publishing, Ltd|year=2006|isbn=0-7546-4638-6}}</ref><ref name=Limits>{{cite book|title=The Limits of Convergence|author=Mauro F. Guillén|chapter=Multinationals, Ideology, and Organized Labor|pages=126 (Table 5.1)|publisher=Princeton University Press|year=2003|isbn=0-691-11633-4}}</ref><ref name=AIA>{{cite book|title=Geography, An Integrated Approach|author=David Waugh|chapter=Manufacturing industries (chapter 19), World development (chapter 22)|pages=563, 576–579, 633, and 640|publisher=Nelson Thornes Ltd.|year=2000|edition=3rd|isbn=0-17-444706-X}}</ref><ref name=Principles>{{cite book|title=Principles of Economics|author=N. Gregory Mankiw|year=2007|edition=4th|isbn=978-0-324-22472-6}}</ref> [[Place:Turkey|Turkey]] and {{wipe|South Africa}} were classified among the world's 34 developed countries (DCs) by the CIA World Factbook in 2008.<ref name="factbook">{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/appendix/appendix-b.html|title=Appendix B :: International Organizations and Groups|work=The World Factbook|publisher=Central Intelligence Agency|access-date=28 September 2020|archive-date=9 April 2008|archive-url=https://web.archive.org/web/20080409033504/https://www.cia.gov/library/publications/the-world-factbook/appendix/appendix-b.html|url-status=dead}}</ref> Turkey became a founding member of the OECD in 1961 and Mexico joined in 1994. The [[Organization:G8+5|G8+5]] group is composed of the original G8 members in addition to {{wipe|China}}, {{wipe|India}}, Mexico, {{wipe|South Africa}} and {{wipe|Brazil}}. The members of the [[Organization:G20|G20]] include Brazil, China, India, Indonesia, Mexico, South Africa and Turkey.

<small>Note: Green-colored cells indicate highest value or best performance in index, while yellow-colored cells indicate the opposite.</small>

{| class="wikitable sortable mw-collapsible"
|-
! style="font-size:8pt" |Country
!style="font-size:8pt"|[[Earth:Geopolitics|Region]]
! style="font-size:8pt; width:70px;" |[[Finance:List of countries by GDP (nominal)|GDP (nominal)]] (Millions of USD, 2023 [[Organization:International Monetary Fund|IMF]])<ref name="GDP IMF">{{cite web|date=April 2023|title=World Economic Outlook Database, April 2023|url=https://www.imf.org/en/Publications/WEO/weo-database/2023/April/weo-report?c=223,924,534,536,548,273,566,199,578,186,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2021&ey=2028&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|access-date=18 April 2023|website=IMF.org|publisher=[[Organization:International Monetary Fund|International Monetary Fund]]}}</ref>
! style="font-size:8pt; width:70px;" |GDP per capita (nominal)<br>(USD, 2023 [[Organization:International Monetary Fund|IMF]])<ref name="GDP IMF"/>
! style="font-size:8pt; width:70px;" |GDP (PPP) (Millions of current Int$, 2023 [[Organization:International Monetary Fund|IMF]])<ref name="GDP IMF"/>
! style="font-size:8pt; width:70px;" |GDP per capita (PPP)<br> (current Int$, 2023 [[Organization:International Monetary Fund|IMF]])<ref name="GDP IMF"/>
!  style="font-size:8pt; width:80px;"|[[Finance:Gini coefficient|Income inequality (GINI)]] 2011–19<ref>{{cite web|title=GINI Index Data Table|url=http://data.worldbank.org/indicator/SI.POV.GINI|publisher=World Bank|access-date=4 April 2012}}</ref><ref>Note: The higher the figure, the higher the inequality.</ref><ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2022/April/weo-report?c=223,924,534,536,548,273,566,199,578,186,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2022&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|title=World Economic Outlook Database, April 2022 |date=20 April 2022 |website=IMF.org |publisher=[[Organization:International Monetary Fund|International Monetary Fund]]|access-date=20 April 2022}}</ref>
!  style="font-size:8pt; width:120px;"|[[Engineering:Human Development Index|Human Development Index]] (HDI, 2021)<ref name="UNHDI">{{cite web|url= https://hdr.undp.org/system/files/documents/global-report-document/hdr2021-22pdf_1.pdf |title=Human Development Report 2021|publisher=[[Organization:United Nations Development Programme|United Nations Development Programme]]|access-date=8 September 2022}}</ref>
!  style="font-size:8pt; width:60px;"|Real GDP growth rate as of 2022<ref>{{Cite web|url=https://www.imf.org/en/Publications/WEO/weo-database/2023/April/weo-report?c=223,924,534,536,548,273,566,199,578,186,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2021&ey=2028&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|title=World Economic Outlook Database, April 2023|publisher=IMF|access-date=18 April 2023}}</ref>
|-
|{{flag|South Africa}}
| style="text-align:center;" |[[Earth:Africa|Africa]]
|style="background:#ffc" ;| '''380,906''' || 6,485
| style="background:#ffc" ;|'''990,030'''
| 16,091 || style="background:#ffc;" |'''64  <small>(2018)</small>'''|| 0.713 (<span style="color:#0c0;">high</span>)|| 1.1
|-
| align="left" | {{flag|Brazil}}
| style="text-align:center;" rowspan="2" |Latin America
| 2,126,809|| 10,412
| 4,020,381 || 18,686
|| 44.9  <small>(2019) </small>|| 0.754 (<span style="color:#0c0;">high</span>)|| style="background:#ffc;" |'''1.0'''
|-
|align="left"|{{flag|Mexico}}
| 1,811,468  || 12,674 || 3,125,902 || 23,820 || 41.8 <small>(2019)</small>|| 0.758 (<span style="color:#0c0;">high</span>)|| 1.2 
|-
| align="left" |{{flag|China}}
| rowspan="6" style="text-align:center;" |[[Earth:Asia-Pacific|Asia-Pacific]]
| style="background:#cfc;" |'''17,700,899''' 
| |'''13,721'''
| style="background:#cfc;" |'''33,014,998'''
| 23,382 || 38.5  <small>(2016)</small>|| 0.768 (<span style="color:#0c0;">high</span>)|| 4.4
|-
|align="left"|{{flag|India}}
|3,732,224
| style="background:#ffc;" |'''2,612'''
| 13,12,443
| style="background:#ffc;" |'''10,475'''|| 35.3 <small>(2018)</small>|| style="background:#ffc;" |'''0.633''' (<span style="color:#fc0;">medium</span>)|| style="background:#cfc;" |'''6.4'''
|-
|align="left"|{{flag|Philippines}}
| 435,675 || 3,905 || 1,289,281 ||11,420
|42.3  <small>(2019)</small>|| 0.699 (<span style="color:#fc0;">medium</span>)|| 5.7 
|-
|align="left"|{{flag|Malaysia}}
|430,895
| 13,382
| 1,230,823 || 36,847 || 41.1  <small>(2019)</small>|| 0.803 (<span style="color:#0c0;">very high</span>)|| 4.4
|-
|align="left"|{{flag|Indonesia}}
||1,417,387
| 5,108
| 4,398,729 || 15,855 || 38.2  <small>(2018)</small>|| 0.705 (<span style="color:#0c0;">high</span>)|| 5.0
|-
|align="left"|{{flag|Thailand}}
| 512,193 ||8,182
| 1,591,402 || 22,675 || style="background:#cfc;" |'''34.9 <small>(2019)</small>'''|| 0.800 (<span style="color:#0c0;">very high</span>)||3.7
|-
| align="left" |{{flag|Turkey}}
| rowspan="1" style="text-align:center;" |[[Earth:Eurasia|Eurasia]]
| 1,340,689 || style="background:#cfc;" | '''15,368''' 
| 3,805,673 || style="background:#cfc;" | '''43,887''' || 41.9  <small>(2019)</small>||style="background:#cfc;" |'''0.838''' (<span style="color:#0c0;">very high</span>)||3.0
|}

For China and India, the immense population of these two countries (each with over [[Earth:List of countries and dependencies by population|1.3 billion people]] as of May 2021) means that per capita income will remain low even if either economy surpasses that of the United States in overall GDP. When GDP per capita is calculated according to [[Finance:Purchasing power parity|purchasing power parity]] (PPP), this takes into account the lower [[Finance:Cost-of-living index|costs of living]] in each newly industrialized country. Nominal GDP per capita typically is an indicator for living standards in a given country as well.<ref>{{cite web|title=How Do We Measure Standard of Living?|url=https://www.bostonfed.org/education/ledger/ledger03/winter/measure.pdf|website=The Federal Reserve Bank of Boston|date=14 February 2003}}</ref>

Brazil, China, India, Mexico and South Africa meet annually with the G8 countries to discuss financial topics and climate change, due to their economic importance in today's global market and environmental impact, in a group known as [[Organization:G8+5|G8+5]].

=== Other ===
Authors set lists of countries accordingly to different methods of economic analysis. Sometimes a work ascribes NIC status to a country that other authors do not consider a NIC. This is the case of countries such as {{wipe|Argentina}}, [[Place:Egypt|Egypt]], Sri Lanka<ref>{{cite book|title=Popular Development: Rethinking the Theory and Practice of Development|author=John Broman|page=81|publisher=Wiley-Blackwell|year=1996|isbn=1-557-86316-4}}</ref> and {{wipe|Russia}}.<ref name=Globalization />

== Criticism ==
NICs usually benefit from comparatively low wage costs, which translates into lower input prices for suppliers. As a result, it is often easier for producers in NICs to outperform and outproduce factories in [[Finance:Developed country|developed countries]], where the [[Finance:Cost of living|cost of living]] is higher, and trade unions and other organizations have more political sway. This comparative advantage is often criticized by advocates of the [[Social:Fair trade|fair trade]] movement.

== Problems ==
While South Africa is considered wealthy on a wealth-per-capita basis, [[Social:Economic inequality|economic inequality]] is persistent and extreme poverty remains high in the country.<ref>{{cite web|last1=Sedghi|first1=Ami|last2=Anderson|first2=Mark|title=Africa wealth report 2015: rich get richer even as poverty and inequality deepen|url=https://www.theguardian.com/global-development/datablog/2015/jul/31/africa-wealth-report-2015-rich-get-richer-poverty-grows-and-inequality-deepens-new-world-wealth|website=The Guardian|language=en-GB|date=31 July 2015}}</ref>South Africa is a NIC with 34% of population unemployed and poor.

Mexico's economic growth is hampered in some areas by an ongoing drug war.<ref>{{cite web|url=http://knowledge.wharton.upenn.edu/article.cfm?articleid=2695|title=Drug Trafficking, Violence and Mexico's Economic Future|website=Knowledge.wharton.upenn.edu|publisher=University of Pennsylvania|date=26 January 2011|access-date=28 July 2013}}</ref>

Other NICs face common problems such as widespread corruption and political instability, as well as other circumstances that cause them to face the [[Finance:Middle income trap|middle income trap]].<ref name="c10"/>

== See also ==
<!---♦♦♦ Please keep the list in alphabetical order ♦♦♦--->
* [[Finance:Emerging market|Emerging market]]
* [[Finance:Flying geese paradigm|Flying geese paradigm]]
* [[Global North and Global South]]
* [[Finance:Industrialisation|Industrialisation]]
* [[Engineering:Mechanization|Mechanization]]
* [[Finance:Mass production|Mass production]]
* Science in newly industrialized countries
* [[Finance:Second World|Second World]]

;Groupings
<!---♦♦♦ Please keep the list in alphabetical order ♦♦♦--->
* [[Finance:BRIC|BRIC]] / [[Finance:MINT (economics)|MINT]] / Next Eleven
* [[Organization:BRICS|BRICS]]
* [[Finance:CIVETS|CIVETS]]
* [[Organization:G8+5|G8+5]]
* [[Organization:G20|G20]]
* [[Organization:G20 developing nations|G20 developing nations]]

== References ==
{{Reflist|30em}}

{{South-South}}

[[Category:Economic country classifications]]
[[Category:Economic development]]

{{Sourceattribution|Newly industrialized country}}