The Economy and Environment

 Fertile plains and river valleys major source of agriculture  Agriculture is the leading economic activity  Rice main crop  Thailand and Vietnam world’s top exporters of rice  3/4 of all workers in Laos, Cambodia farmers  Flooded rivers irrigate paddies (flooded fields)  Grow two crops a year, little modern machinery used  Rubber is a cash crop in Thailand, Indonesia and Malaysia  Sugarcane, coffee and spices other regional exports

 Many species of fish found in rivers across region  Fish farming important part of economy  Southeast Asians consume twice the world average of seafood  Overfishing is a concern

Forests and Mines  Major industry on mainland  Myanmar is the major world supplier of teakwood  Industry has contributed to deforestation  Mineral deposits Malaysia, Indonesia, Thailand  Malaysia world leading exporter of tin  Oil deposits Malaysia, Brunei, Indonesia  Oil accounts for nearly all of Brunei’s export income  Indonesia is the regions largest petroleum exporter  Pipeline construction growth industry

Papua’s Resources  Indonesia controls western half of New Guinea  Government has set area aside for resource development  Timber and mineral deposits abundant  Foreign countries come in and extract resources but do little to invest in health, education or public services

Industry  Rapidly growing, people leaving farming for urban manufacturing jobs  During last part of 20 th century there was an economic boom based on natural resources, cheap labor and foreign investment  Debts and financial corruption led to economic crisis in 1997  Countries have had to balance growth with economic responsibility

 Singapore SE Asia’s most developed economy  Ports, harbors and international trading links make it a major manufacturing center  Free Trade Zone established 1965, attracted foreign investment  Moved into oil refining, electronics  To keep skilled workers country has invested in education  Malaysia diversified economy,  Rubber and palm tree oil major exports, also manufactures electronics and building supplies  Developed heavy industry (steel making, auto assembly)  World’s leading exporter of microchips

Less Industrialized Countries  Indonesia- late 1990’s political instability affected economic growth  Major supplier of raw materials for world markets  Labor force lacks skills for industrialization, needs foreign aid for development  Laos, Cambodia, Vietnam, Myanmar developing even slower  Wars, political changes keeping countries from developing  Laos landlocked, remains largely agricultural  Communist policies to collectivize agriculture reduces incentive to get ahead  Rich in mineral resources, lacks modern technology to develop  Vietnam growing population, inadequate infrastructure slow development  Literate population shows potential for growth  Natural beauty of coastline potential for tourism  Cambodia political problems slowed growth, lack of skilled workers  Myanmar self imposed isolation prevents economic progress

 Physical geography affects transportation and communication across region  Water transportation the most common way to move people and goods  Shipping is an important industry in the region  Quality of land transportation depends on the degree of development in the country  More successful economies have better transportation networks  Highways and railroads generally link major cities  The physical geography of rural areas make building transportation networks difficult

 Communication networks depend on level of industrialization  Singapore most well developed communication networks  Use of the internet and wireless communication is growing  Governments typically control radio and TV

 Countries in SE Asia are becoming more interdependent  Organizations formed to promote trade, development and economic stability  Seen as an alternative to foreign investment  Asian Development Bank (ADB), Association of Southeast Asian Nations (ASEAN)  ADB provides loans to support development for agriculture, transportation and industrial projects  ASEAN’s main goals to promote economic growth, cooperation among region’s countries (free trade, reduction of tariffs)  Members try to balance diverse nation goals with regional growth  2004 signed a trade agreement with Chinese  ASEAN member countries are working to form a common economic market (like the EU) by 2015