1 / 19

East and South East Asian NICs: class 2

East and South East Asian NICs: class 2. Alternative perspectives on the East Asian Miracle ( I recommend : John Brohman. 1996. Postwar development in the Asian NICs: Does the neoliberal model fit reality?). The Neoliberal Interpretation. A market regulation thesis

zaynah
Download Presentation

East and South East Asian NICs: class 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. East and South East Asian NICs: class 2

  2. Alternative perspectives on the East Asian Miracle ( I recommend: John Brohman. 1996. Postwar development in the Asian NICs: Does the neoliberal model fit reality?)

  3. The Neoliberal Interpretation • A market regulation thesis • eliminated restrictions on international trade • deregulated financial sector • privatized state enterprises • created unregulated labor market • export-oriented industrialization • based on comparative advantage of low cost labor

  4. Criticisms of the Neoliberal Interpretation • Except for Hong Kong, there was substantial state intervention • Taiwan: state ownership • Singapore: public monopolies and parastatals • Korea: encouragement of chaebol • guided market economies (like Japan) • substantial initial protection of strategic industrial sectors

  5. 2. Ignores key historical factors • Role of Japan in early 20th C • role of U.S. in mid 20th C • much assistance • tolerated early import substitution policy • role of Japanese corporations in 1970s

  6. The Perspective of Paul Kuznets • Focus on proximate determinants

  7. Marital patterns Assorted economic, social and cultural factors Fertility decline Contraceptive usage Breastfeeding practices Fertility research parallel

  8. Rapid economic growth Paul Kuznets’ model High investment ratios Small public sectors Labor market competition Export orientation Government intervention

  9. 1. High investment ratios • Emphasis on investment in human capital • modest investment in residential building • supported by high personal savings rates

  10. Limited consumer credit High personal savings High investment ratio Limited social security Rapid economic growth Real income growth The causal sequence

  11. Family values Rapid economic growth Small public sectors Not federal governments 2. Small public sectors • Despite high defense spending in Korea and Taiwan • role of cultural and social values stressing family responsibility • form of government

  12. 3. Competitive Labor Markets • Measures to limit organization of labor • leads to low wage growth

  13. 4. Export Expansion • Export growth rates 1973-83 • Korea: 15% per year • Taiwan: 12% per year • role of exchange rate depreciation and export promotion measures • timing good. • Why does export orientation promote above average growth???

  14. Long-term industrial policy Stable governments 5. Government Intervention • Role of industrial policy • stable government

  15. Perspective of:World Bank. 1993.The East Asian Miracle

  16. Budget deficits inflation external debt exchange rates Market-based competition Selective intervention Contest-based competition

  17. Campos and Root, 1996.The Key to the Asian Miracle: Making Shared Growth Credible Theme: the importance of “shared growth”

  18. Rapid Growth (Cooperation) Wealth-sharing mechanisms Shared Growth

  19. Land reform and rural development Investment in education Promotion of small and medium-sized businesses Developing rural infrastructure Shared Growth

More Related