The secret to success of East Asian economies Essay examples

1090 Words 5 Pages
Since the end of the second world war, many East Asian economies have seen a “miraculous” growth. And with so many other nations still in poverty, economists and leaders are turning their eyes towards the “East Asian tigers” to see if they can replicate their results. When looking at the facts it is obvious that the the circumstances facing the East Asian nations were quite different than the ones that nations face today. But outside of these differences a loose model of the East Asian miracle can be utilized in Third World nations today and, considering the high success rate of so many of the East Asian economies, would most likely see positive results.
The secret to success of East Asian economies is the hand that the government has
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This means that neither the pursuit of private profit for monopoly capitalists, nor the political agendas of big parties get in the way of the economic progress of the nations. This form of policy can only exist under a socialist-type state, where everything is centralized. The antitype of this would be again the Latin American economies where both dominant and lower classes pressure the government leading to a political equilibrium which translates into a stagnant economy (Kay, 2002:p.1086).
As much as can be learned from the East Asian tigers, there are also a few particular factors without which these nations may not be where they are. One major factor to the growth of East Asian economies would be the Cold War and the fight against communism. America's preoccupation with the USSR and the Korean War made it possible for Capitalist Asian countries, specifically Japan, to both promote and camouflage their own growth while manipulating the USA (Woo-Cummings,1999:p.55-56).
Institutions such as the World Bank have attempted at “force-feeding” the same approaches throughout third world nations (Amsden, 1994:p.628). Of course this is more convenient than it is effective as it is simply impossible to expect identical results from a variety of different nations under different…