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Nearly all the nations in Asia retain the traditional, cottage-type, small- scale handicraft industries, while a modernized manufacturing sector is slowly emerging. Only a few nations have been able to build a solid industrial base during the last two-three decades. Prominent among such nations are: South Korea, Taiwan, Hong Kong, Israel, Turkey, and Kazakhstan. The economies of most other nations are geared principally to the primary activities (agriculture, forestry, mineral extraction, etc.).
Japan, India and China account for a large volume of Asia’s industrial output. They have received a larger share of attention in our account. A very brief account of the manufacturing activities of the rest of the continent is provided in the following paragraphs.
In East Asia South Korea has recently taken great strides towards industrialization, and is rapidly emerging as an important producer of automobiles, chemicals, and electronic equipment, although the traditional textile industry remains the single most important one. North Korea is an important manufacturer of iron and steel, chemical products and defense-related heavy, metallurgical products (tanks, aircraft, etc.) In Taiwan, the labor-intensive light industry of consumer items (processed foodstuffs, textiles) predominated before 1970. Since then, investment shifted to more capital-intensive heavy industry producing steel, petrochemicals, machinery, and ships.
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In addition, as the economy prospered and the nation accelerated efforts to develop its high-volume, high-tech industries such as the manufacture of precision instruments, and electronic materials. Since WWII, Hong Kong has emerged as an important producer of consumer goods, textiles, ships, chemical products, capitalizing mainly on its liberal economic policy.
Industrial development in the Southeast Asian nations has generally lagged, resulting in part from the prevailing disturbed political conditions in Vietnam, Cambodia, Laos and Myanmar but several nations such as Singapore, Thailand and Malaysia have been able to make significant progress in expanding their manufacturing base and modernizing it.
Singapore offered a particularly liberal climate for foreign investors. Its manufactured items include rubber goods, chemical products, textiles, high-skill and capital-intensive materials, ships and virtually all types of consumer goods. Beginnings of modern industrialization are visible in Indonesia, Thailand, Malaysia, and the Philippines as well.
While agriculture remains prominent in the economies of these nations, recent attempts to manufacture rubber goods, petrochemicals, steel products and textiles have been successful. The industry is primarily owned and controlled by the governments of these nations. Much of the small-scale industry of textiles and consumer items is owned by the Chinese community.
In the Indian subcontinent, there was very little manufacturing activity in Pakistan, Bangladesh, and Sri Lanka prior to gaining independence from the British control in the late 1940s. Manufacturing activity since then has also been slow. In Bangladesh jute manufacturing located in the capital city of Dhaka remains the chief industry.
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Pakistan is attempting to modernize and expand its traditional industries of textiles and food processing and since the mid-1950s has been producing chemical fertilizers, petrochemical and engineering products. Manufacturing remains of minor importance in Sri Lanka. However, like Pakistan, it is attempting to develop oil refining, chemical and textile industries.
Predictably industrial activity in the Gulf States (Persian or Arabian Gulf) is essentially associated with oil refining and the manufacture of petrochemical products and localized in the port cities of Daharan (Saudi Arabia), Abadan (Iran), Kuwait, and Baharain, while the traditional, small-scale industries like textiles, carpet-making and food processing continue to flourish in nearly all the countries, but more specifically in Iran, and Iraq. Among the newer industries developed during the last few decades the manufacturing of iron and steel, automobiles and defense-related products in Iran and Iraq are noteworthy.
In the Middle East the greatest development in manufacturing has taken place in Israel since its inception, but considerable gains have been made in Turkey as well. Israel produces defense-related materials (aircraft, tanks), sophisticated precision goods (Electronic and electrical equipment), fertilizers, chemicals and pharmaceuticals. Turkey’s manufactured items include iron and steel, chemicals, oil refining and textiles.
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In Central Asia, manufacturing development has largely taken place during the Soviet rule. The major industrial center is in Kazakhstan where iron-steel, cement and fertilizer industries were established in the mineral-rich Karaganda region.
Plants producing heavy metallurgical machinery were set up in Uzbekistan as well. The nations of Kyrgystan, Tajikistan, and Turkmenistan contain such light industries as textiles of woolen and silk materials, food processing and the manufacture of carpets and leather products.
From the standpoint of industrial development, Transcaucasia is a better- developed region of Southwest Asia. It is rich in resources such as coal, hydroelectric power, and nonferrous metals. A number of industrial centers such as Baku, Batumi and Tbilisi producing cast iron and steel goods, locomotives, rubber and petrochemical products, cement, textiles, and processed food.