Transferrable lessons? Re-examining the institutional prerequisites of East Asian economic policies
The East Asian Development model has some features that are the universal building block in how the East Asian countries came out of the economic state there were in before the Second World War. The countries with this model had an incredible growth in the years after 1950. The leader of the growing countries has been Japan working as the spearhead followed by the Asian tigers, and then the new Asian tigers.
The most salient features of this model has been an improvement in the material standard of living for almost whole populations, this has been made possible by high growth rates. This growth rate has been kept incredible high over decades and with surprisingly demising of income inequality. Even though there has been a very similar growth pattern, there are some differences in how the East Asian countries have managed to develop. These different patterns can be divided in to three different models, these are: the market-friendly, industrial policy and the profit- investment nexus.
Even though the development model has been fitted to suit each country demographic, there are some common features among them. They all have had export friendly policies implementing, starting of exporting cheap goods. Then they have taken the earnings from this and had a high savings rate. The money they have saved has been invested in infrastructure and educating the population. With an increase in educated habitants of the country they have been able to move into more technical export markets, and moving more and more out of the cheap labor export goods. One of the key aspects on how the growth could happen so quickly was the pragmatic approach th...
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.... This has to be done to encourage a bigger sense of individualism, to help innovation on all levels to prosper. If something is not done about this, the Asian values can become a burden instead of a competitive edge. The reason for this is to be able to compete in today’s international market; some of the strong Asian values have to be moderated to be able to grow. And then nurture the homegrown innovation’s which will integrate into the international economy of the Asian countries.
With a keep developing the model, it is in my opinion as relevant today. As long as East Asian countries manage to develop it to follow the globalized world we live in, and the international trends. One of the strongest traits of the model after the war was that the governments were able to do this, and develop it too fit the new level of economic prosperities as they were reached.
...conomically beneficial trade and technology development. In this regard the Epilogue uses sound logic to plausibly answer the wealth question. On the other hand, Mr. Diamond uses the same "national competition" thesis to purport that Asia's large, centralized governments were conspicuously growth-inhibitive. This argument would not seem to pass muster given what we have learned about the role of governments. Professor Wright's slides state that "Centralization may limit predation and even allow for growth" as "centralized predation = incentives to maximize the haul " This clearly refutes Mr. Diamond's argument that centralized, monopolistic Asian governments impaired societal advances. Thus, Guns, Germs, and Steel can scantly explain why China and the Middle East remain emerging markets while Western and Northern Europe enjoy significantly larger national wealth.
Vietnam’s economic improvement over the three decades from 1945 was therefore modest, particularly in comparison to the Asian Tigers (Hong Kong, Singapore, South Korea and Taiwan) that enjoyed a golden period of high economic growth in these
Since its publication in 1925, The Great Gatsby has remained a spot-on representation of a time in American history in which the people believed anything was possible. Gatsby is the definition of this idea. The underlying cause of everything in this novel is his--and in essence everyone’s idea. This idea is the ubiquitous notion of the American Dream. And Fitzgerald does not only write about the American Dream, but about its corruption as well. This following quote truly epitomizes what the American Dream had become in the eyes of Fitzgerald:
In the far east area of the world, globalization has had many big benefits for creating substantial prosperity for individuals, like how Japan rose out of poverty and created one of the most poerful economies. Japan started out as one of the major isolated nations and over many years the spread of knowledge grew and Japan started opening their door to the rest of the world. Japan started out as a small economic country and didn’t have a very big impact on international trade and new technology but Japan created many legacies that had a huge positive impact, and changed the whole world. Along with the rise of technology, there became problems that effected everyone. With the rise of technology came the world demand for products and to keep up ...
Economic liberalism is described as ‘the belief that both national societies and the global economy can and should be organized through self-regulating markets’ (Block 2001, xviii). Other aims of economic liberalism are using ‘laissez faire’ methods and the principle of free trade . Polanyi somewhat pushed for a more humane and rational structure and sought to rebuild the market society from its foundations . He reasoned that a society could fall victim to economic downturns with the rapid rise of a market economy (Litao 2013, 158). The article supports this view as it stated that china’s annual growth rate is at 6.8%, which may seem impressive for other global economies, but is however the weakest it has been in 25 years.
First generation college students are students who comprise a distinct minority within most institutions of higher learning. These groups of students are the first generation of students in their family lineage to attend a college or university (Allwood, 1966). Due to the lack of family guidance in navigating through the college experience, first generation students face an array of obstacles upon entering the realm of higher education. These students are less likely to obtain their bachelor degree due to finance, family support and retention, all which ultimately limit their college experience. Not only do these students experience issues migrating through high school into college, they also lack the necessary resources some students need to achieve higher standards. For instance financial assistance, mentorship, and other motivating factors that can help a student grow into a professional.
Robert E. Lucas Jr.’s journal article, “Some Macroeconomics for the 21st Century” in the Journal of Economic Perspectives, uses both his own and other economist’s models to track and predict economic industrialization and growth by per capita income. Using models of growth on a country wide basis, Lucas is able to track the rate at which nations become industrialized, and the growth rate of the average income once industrialization has taken place. In doing so, he has come to the conclusion that the average rate of growth among industrialized nations is around 2% for the last 30 years, but is higher the closer the nation is to the point in time that it first industrialized. This conclusion is supported by his models, and is a generally accepted idea. Lucas goes on to say that the farther we get from the industrial revolution the average growth rate is more likely to hit 1.5% as a greater percentage of countries become industrialized.
World War 2 drew a hard blow and left a serious and lasting effect to many Asian countries. This however, did not hamper the growth of countries such as China, Japan and Vietnam as their governments were taking serious steps to recover economically. Thus, the global market cannot deny a place for these 'Asian Dragons', because these countries are growing at a tremendous pace to the extent of being capable in emerging as global market leaders.
Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.
Whereas China ushered in the 21st Century as member of the World Trade Organization (WTO) and as an economic power, Japan entered the Asian Century with a stagnant economy. And as China transforms its economy into a ‘socialist market economy’ it is held that the attendant social, economic, and political transformations necessitate that its state controlled IRs system is decentralized and more so, it should be converge with international best practice IR sta...
time. As time progresses, countries seem to be able to grow at a much more rapid
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
When looking through the topic of development, two drastically different ways to assess it arise. The majority of the western world looks at development in terms of per capita GNP. This means each country is evaluated on a level playing field, comparing the production of each country in economic value. Opposite this style of evaluation is that of the alternative view, which measures a country’s development on its ability to fulfill basic material and non-material needs. Cultural ties are strong in this case as most of the population does not produce for wealth but merely survival and tradition.
Theoretical model of modern economic growth shows that long-term economic growth and raise the level of per capita income depends on technological progress. This is because of without technological progress and with the increase of capital per capita, marginal returns of capital would diminish and output per capita growth would eventually stagnate (Solow, 1956; Swan, 1956). Studies have shown that “experience, skills and knowledge in the long-term economic growth is playing an increasingly important role” (World Bank, 1999). Despite how technological progress work on economic growth, and how there are different views on the role of in the end, but I am afraid no one would deny that technical progress in the important role of economic development. In this sense, for a country to achieve long-term economic growth, we must continue to promote technological progress. However, economic growth theory is analyzed in general, and usually under the assumption that in the closed economy, and technological progress in a country not normally have taken place in various departments at the same time, and now the economy are often increasingly open economy. In this way, the technological progress in different economic impact on a country may be quite different. In addition, we assume that technological progress is Hicks neutral, is to an industry in itself, but technological progress also reflects the establishment of new industries and development. The new industries and technology-intensive industries generally older than the high, the use of less labor. Even the old industries, the general trend of technological progress is labor-saving.
The objective of this paper is to make an economic development and economic growth comparison of these four countries. The comparison will be multi-faceted. It will compare monetary perform...