The Development Of The East Asian Miracle

2515 Words Apr 6th, 2015 11 Pages
Thus far, I have laid out some of the most important arguments in the extant literature on the East Asian Miracle with particular reference to South Korea. In this section, I integrate the preceding two sections on the existing literature and propose an alternative theory. In brief sum, the existing developmental state literature, including that specific to South Korea, argues that the developmental state causes economic growth through export-led industrialization. I reverse the order of two links in that theoretical chain. Specifically, I argue that the developmental state does not give rise to export-led growth. In fact, it is the inception of the export-led growth strategy that gives rise to the developmental state, which emerges as a necessity of shepherding export-led growth. This is a slightly different argument than the arguments given in both the “origins” literature and the developmental state literature. Though (correct) mechanisms are proposed in the “origins” literature for the developmental state, the role of an investor of capital and technology in enabling export-led growth – Japan, in the case of South Korea – is left relatively untouched, and in any case growth allegedly follows from state actions, not the other way around. This is evidently true, but the promise of economic growth, and credible commitments that ELI had a chance of success, are also important in explaining origins. Additionally, my argument ascribes more power to capital than the…

More about The Development Of The East Asian Miracle

Open Document