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Rapid economic growth in east asia essay

The Asian Development State: An Evaluation Jessica TselepyNov 22 2014, 1337 views This content was written by a student and assessed as part of a university degree. The potential for grave economic collapse at the close of the Second World War left the world in a desperate state.

As countries searched for ways to revitalise their economies on both a national and global scale, doubts of the existing economic systems were widespread. Traditional capitalist practices had shown themselves to be repeatedly unsettled by deeply disruptive episodes of immense economic imbalance, demonstrated most profoundly by the Great Depression Beeson 2007: A leading illustration of how susceptible this period was to the introduction of an alternate approach is the Asian Development State.

Termed by Chalmers Johnson, the guiding quality of this state model is an emphasis on governments that actively intervene in economic processes and control the course of development Wade 1990. The three key developmental states were South Korea, Taiwan, and, in its most striking application, Japan. While there are a multitude of claims as to how and why this system arose, this essay will attempt to address the key features of the Asian Development State, and consequently evaluate its theoretical underpinnings.

This will be addressed in three main points. Firstly, through an examination of the historical and political context of the Developmental State model in Japan. Secondly, by evaluating the chief unique aspects of the model that were central to its unprecedented success. Finally, a direct evaluation of what theoretical approaches are most applicable to explaining the model will be conducted.

Considering these critical areas will elucidate the economic and political activity of the region that was crucially important to the highly unique growth of East Asia in the decades following the Second World War.

Facilitating this rapid industrialization process was the establishment of large- and small-scale industry arose, alongside a pattern of state intervention.

While the rapid growth experienced by Japan in the post-WWII period was indeed extraordinary, it is important to consider rapid economic growth in east asia essay it had strong history in powerful bureaucratic control and an established industry as its foundation. While there are many, the most notable were: Firstly, the returned prominence of zaibatsu essentially rebadged keiretsu in the post-war period meant that the Japanese economy was dominated by a handful of vertically monopolized conglomerates Woo-Cumings 1999: The main difference from the pre-war period zaibatsu and the post-war keiretsu was that instead of being owned by clans of wealthy Japanese, large financial institutions took their place Johnson 1982: The relative insulation of the Japanese economy was aimed towards securing supplies and maintained by highly effective trade barriers Yahuda 2004: Lastly, as Japanese nationalistic pride grew after the war so did their resentment of external pressure Yahuda 2004: While there was no overarching economic theory prior to Development State model that seemed to account for its methods, there were existing ideas that had a conspicuous influence on Japanese policy makers.

Further, the neo-mercantilist economic approach, which emphasized state control of credit, fixed exchange rates, and a protected domestic economy is visibly present in the Japanese model Yahuda 2004: In conclusion, the Asian Development State model, particularly in Japan, was vastly distinctive to the dominant economic approaches of its time.

Its implications lie most pertinently in considering developmental approaches in the modern world, so that the East Asian experience can provide an important lesson to areas where development is most greatly needed.

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Rapid Economic Growth In East Asia

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  1. Investment rates or equivalently, saving rates appear to have a causal relationship to growth rates i.
  2. Is growth the result for the most part of an accumulation of manpower and machinery, or is it the result of employing the latest technology? This has been The Development Theory In East Asia words - 8 pages competitiveness under industrialization and export orientation, and a top to down decision making under a powerful and economic literate leader and a supporting elite group.
  3. The production possibilities of any economy at any time are determined, according to this view, by the availability of physical resources and of innovative technology.

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