East Asian Development : Asia

1532 Words Jan 20th, 2015 7 Pages
East Asian development
Over the past decades, the East Asian countries have experiences massive economic growth for the policy change from protection centred to export promotion. Taiwan, Korea, and Hong Kong would be the good examples of this. According to Krueger (1997), during 1950s and 60s, it was the general consensus that “import substitution” was the basis for the development, however, Asian countries that applied free trade and promoted export has risen rapidly starting from Taiwan, which transformed from a “high-inflation, inner-oriented, aid-dependent economy” to “major exporting economy”(Krueger 1997). Korea, Hong Kong and Singapore followed similar transformation at the same time period as called “East Asian miracle”(WorldBank 1993). Moreover she points out that those who transformed from inner-oriented to export-driven countries has become more resilient to dept crisis than other countries who did not. After 1979’s oil price surge, the huge economic recession attacked global market. In this crisis, countries with higher dept-export ratios could recovered its growth rate faster than those with inner-oriented manufacturing. (Krueger 1997)
Various problems in trade liberalisation and comparative advantage
However the critiques against the trade liberalisation have also suggested that there are still some failures and shortfalls in this trade liberalisation, and that might be one of the reasons of the suspension of the current Doha Round. The most frequently claimed…
Open Document