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Asian Century? PowerPoint Presentation
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Asian Century?

Asian Century?

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Asian Century?

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  1. Asian Century? Pacific Asia’s pre-1997 high growth

  2. Overview of East Asia’s Growth • Average growth rate higher than those of any other region in the world • Superior performance of the eastern half of Asia • Japan, South Korea • China’s mainland, Hong Kong, Taiwan • Indonesia, Malaysia, the Philippines, Singapore, and Thailand

  3. Overview • Large degree of variance between the individual economies

  4. Geographical division

  5. Growth in East Asia • Japan’s economy took off in 1960s • NIE’s (newly industrialized economies) • Hong Kong, Taiwan and Korea • “very high” growth in the 1960-1975 period • “outstanding” growth in the 1975-1990 period • Singapore: opposite pattern • Irony of Myanmar and the Philippines

  6. Growth in NIE’s • NIE’s accumulated capital and increased labor participation at a much faster rate than other economies • The increase in these two factors far from fully explains their exceptional growth rates • productivity growth also accounts for a significant fraction

  7. Growth in NIE’s: I • Growth of labor participation • “high” for the NIE’s in general

  8. Growth in NIE’s: II • Growth of capital • Hong Kong: “high” • Taiwan & Singapore: “very high” • Korea: “outstanding” • Public investment/GDP similar to other developing economies • Private investment/GDP much higher

  9. Growth in NIE’s: III • Productivity growth • Higher than that of United States • Proportion of growth of GDP per person that is explained by productivity growth was not systematically different from those of Japan and the United States

  10. Paper tigers? • Soviet Union growth pattern • mobilization of resources • Asia growth pattern • two-thirds of the growth is input-driven • the remaining third is attributable to increased efficiency or total factor productivity (TFP)

  11. The World Bank study • To international technological progress • South Korea was keeping pace • Hong Kong, Japan, Taiwan and Thailand were catching up • The investment-driven economies of Indonesia, Malaysia, and Singapore fell behind

  12. Increase in Productivity • Imports of foreign knowledge and technology • Expanding education opportunities • Better organization • Improved work practices

  13. Increase in Productivity • Interlocking cooperation • free enterprise • government financial intervention • guidance-minded technocratic bureaucracy

  14. Korea’s growth path • High rates of saving with funds channeled into the industrial sector • Strong export orientation • Strict limits on “non-essential” imports and direct foreign investment • Strict zoning laws and other restrictions on the distribution system

  15. Hong Kong • Entry port to China

  16. State Intervention Ability Low High High India, Philippines Japan, Taiwan Intent (weak) (strong) U.S., U.K Hong Kong Low (minimalist) (market driven)

  17. Asian Values? • commitment to hard work • sense of thriftiness • emphasis on education • well-defined family structure • filial piety • respect for political authority • society above self

  18. Political stability • Strongman rulers • North Korea, South Korea, Singapore, Malaysia, the Philippines, Indonesia ... • Single-party dominance • Japan, Taiwan, Malaysia, Singapore … • Trading civil rights and freedoms for economic growth • presumption of basic material well-being