Singh, Ajit (1998): The Asian Model: A Crisis Foretold? Published in:
Download (67kB) | Preview
The East Asian countries achieved extraordinarily fast economic growth during the last four decades. Indeed, it would be no exaggeration to say that they represented the most successful case of rapid industrialisation and sustained economic growth in the history of mankind. An economy like South Korea’s was unequivocally industrially backward in the mid-1950s. Its per capita industrial output was at the time US$ 8 compared with US$ 7 for India and US$ 60 for Mexico. By mid 1990, the country was the fifth largest car producer in the world, the largest producer of DRAM microchips, and the home of the world’s most efficient steel industry. Its per capita income had increased from x dollars to nearly US$ 10,000 over a thirty-five year time span.
The Korean story of fast industrialisation and technological catch up is by no means unique. The other three countries in the Gang of Four - Taiwan, Hong Kong and Singapore also achieved similar economic success. More recently, these four countries were followed by Malaysia, Thailand and Indonesia who also recorded sustained and rapid growth of per capita income. Significantly, these “miracle” countries not only expanded at a fast rate but they also did so without any worsening of income distribution. Their record of poverty reduction has been truly remarkable. As Professor Joseph Stiglitz, the World Bank’s Chief Economist, notes: “In 1975, six out of 10 Asians lived on less than $1 a day. In Indonesia, the absolute poverty rate was even higher. Today, two out of 10 East Asians are living in absolute poverty. Korea, Thailand and Malaysia have eliminated poverty and Indonesia is within striking distance of that goal. The USA and other western countries, which have also seen solid growth over the last 20 years but with little reduction in poverty rates, could well learn from the East Asian experience (Stiglitz, 1998).”
|Item Type:||MPRA Paper|
|Original Title:||The Asian Model: A Crisis Foretold?|
|Keywords:||Economic growth; Asia; Developing economies|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies
A - General Economics and Teaching > A1 - General Economics
|Depositing User:||Ajit Singh|
|Date Deposited:||02. Sep 2010 12:48|
|Last Modified:||12. May 2015 17:53|
Amsden, A. 1989. Asia’s Next Giant. New York: Oxford University Press.
Amsden, A. and Singh, A. 1994. “The optimal degree of competition and dynamic efficiency in Japan and Korea.” European Economic Review 38:941-951.
Aoki, M. 1990. “Toward an economic model of the Japanese firm.” Journal of Economic Literature 28:1-27.
Aoki, M. and Patrick, H. (eds.) 1992. The Japanese Main Bank System: Its Relevance for Developing and Transforming Economies. Oxford: Clarendon Press.
Bank for International Settlements. 1998. Annual Report. Basle: BIS.
Caves, R. and Uekusa, M. 1976. Industrial Organisation in Japan. Washington: The Brookings Institution.
Chakravarty, S. and Singh, A. “The desirable forms of economic openness in the South.” Helsinki: World Institute for Development Economics Research.
Chang, H-J. 1998. “Reform for the long-term in South Korea”, International Herald Tribune, 13 February 1998.
Dore, R. 1986. Flexible Rigidities: Industrial Policy and Structural Adjustment in the Japanese Economy, 1970-1980. London: The Athlone Press.
Evans, P. 1987. “Class State, and Dependence in East Asia: Lessons for Latin Americanists”, in F.Deyo (ed.), The Political Economy of the New Asian Industrialism. Ithaca: Cornell University Press.
Feldstein, M. 1998. “Refocusing the IMF.” Foreign Affairs, March/April.
International Monetary Fund. 1998. World Economic Outlook. Washington: IMF.
Krugman, P. 1994. “The myth of Asia’s miracle.” Foreign Affairs, Vol.73, No.6.
Krugman, P. 1998. “What happened to Asia?” Unpublished.
Lee, C.H. 1992. “The government, financial system and large private enterprises in economic development in South Korea.” World Development 20:187-197.
Odagiri, H. 1994. Growth Through Competition, Competition Through Growth: Strategic Management and the Economy in Japan. Oxford: Clarendon Press.
Radelet, S. and Sachs, J. 1998. “The East Asian Financial Crisis: Diagnosis, Remedies, Prospects.” Cambridge, Mass.: Harvard Institute for International Development.
Singh, A. 1998a. “Liberalisation, the stock market and the market for corporate control: A bridge too far for the Indian economy?”
Singh, A. 1998b. “Savings, investment and the corporation in East Asia,” Journal of Development Studies
Singh, A. 1998c. “Competitive markets and economic development: A commentary on World Bank analyses,” in P. Arestis and M. Sawyer (eds.), The Political Economy of Economic Policies. London: Macmillan.
Singh, A. 1998d. “Asian capitalism and the financial crisis.” Paper presented at the Conference on World Economic Governance, Robinson College, Cambridge, May. Forthcoming in a volume of essays edited by J. Grieve Smith and J. Michie.
Singh, A. 1997. “Catching up with the West: A perspective on Asian economic development and lessons for Latin America,” in L. Emmerij (ed.), Economic and Social Development into the XXI Century. Washington: Inter-American Development Bank.
Singh, A. 1994. “Openness and the market-friendly approach to development: Learning the right lessons from development experience.” World Development 22:1811-1823.
Stiglitz, J. 1998. “Restoring the Asian Miracle”, Wall Street Journal, Europe, 3 February, p.4).
Williamson, O. 1975. Markets and Hierarchies: Analysis and Antitrust Implications. New York: The Free Press.
Wolf, M. 1998. “Flows and blows.” Financial Times, 3 March 1998.
World Bank. 1991. World Development Report. Washington: World Bank.