1 / 8

Political Economy of Taiwan and S Korea – East Asian Model

Political Economy of Taiwan and S Korea – East Asian Model. East Asian Model

farhani
Download Presentation

Political Economy of Taiwan and S Korea – East Asian Model

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. Political Economy of Taiwan and S Korea– East Asian Model • East Asian Model The so-called East Asian model of economic development was actually a model created by Japan in post-WWII, which has become one of the most interesting topics in the fields of political economy and comparative politics.

  2. Main characteristics of East Asian Model • 1. Corporatist Developmental State • 2. Export-led Economic Development Strategy • 3. State policy and intervention

  3. 1. Corporatist Developmental State • The state intrudes into detailed operations of individual enterprises with various measures intended to promote national industrial policies. • For example, Japan: • The Ministry of International Trade and Industry (MITI) and the Ministry of Finance • Corporate conglomerates, such as Mitsui, Mitsubishi, Sumitomo, Fugo, Sanwa, Dai Ichi Kangyo Bank, Toyota, and Hitachi

  4. Differences between free market economy and “corporate developmental state”

  5. Differences

  6. Differences

  7. 2. Export-led Economic Development Strategy • Such a strategy seeks rapid industrialization initially by exporting relatively cheap products of labor intensive industries, such as textiles, and then by exporting higher value-added products of more capital-intensive industries, such as iron and steel, shipbuilding, and machinery, and finally by exporting more products of technology-intensive industries. • Examples:

  8. 3. State policy and intervention • The first is the practice of targeting the “strategic” sectors and firms for state special support starting with labor-intensive sectors; • The second is a neo-mercantilist trade policy of maximizing exports and minimizing imports; • The third is the state attempt to establish the parameters, rules, priorities, and infrastructures for the harmonious integration of the component parts of the society and the economy to achieve the common good of the whole society while each of the component parts is self-motivated and self-managing within state-initiated, organic structures.

More Related