...Asian Economic Miracle: The Wisely Chosen Economic Policies and The Economic Trend of 20th Century Van Nguyen Keystone College Abstract: Asian economic miracle refers to three groups of East Asian countries making miracle in transforming their economies from the third world to the first world ranking. There are three generations of Asian miracle. Starting with Japan, the first generation of what called Asian miracle, following with the second generation including South Korea, Hong Kong, Singapore, and Taiwan, and final generation consists of some Southeast Asian countries such as Thailand, Malaysia. This paper is going to talk about the second generation of Asian economic miracle. By showing their economic achievement, illustrating their economic policies, and analyzing how the economic trend of 20th century reflected on those policies, this paper will argue that Asian miracle was the result of the wise choices of how to manage an economy. Furthermore, developing countries should learn the lessons of how to choose the right economic policies to make economic miracle. Asian Economic Miracle: The Wisely Chosen Economic Policies and The Economic Trend of 20th Century Introduction According to the East Asian Miracle (EAM, World Bank, 1993), “East Asia has a remarkable record of high and sustained economic growth. From 1965 to 1990 the twenty-three economies of East Asia grew faster...
Words: 6857 - Pages: 28
...ABSTRACT: Asian economies went through significant transformation during the 2000s. They became part of global supply chains, major global commodity consumers and large capital exporters, and were also deeply involved in regional co-operation initiatives. These factors contributed to global disinflation in manufactured goods prices, abundant global liquidity and strong growth in commodity-exporting economies including Australia. (maybe because of 1997-1998 Asian financial crisis) In the coming decade, Asian economies are likely to continue their ascendancy, albeit at a slower pace, which should eventually decouple Asia from the advanced economies. With increasing domestic cost pressures, Asia may also become a new source of global inflation. Asia’s exports of capital to advanced economies may shrink as the region rebalances and outflows should focus more on portfolio investment and foreign direct investment (FDI). In the coming decade, a potential crisis in a major Asian economy such as China could trigger the next global recession. SUMMARY: History: more than 1000 years before the industrial revolution, the combined share of China and India in the world economy was routinely greater than 50% (but whether they will assert influences on the world economy depends on assumption of sustainability) 1993: the East Asian miracle, HPAEs (world bank 1993), no China India 1997-1998 Asian financial crisis (triggered by the withdrawal of foreign capital from the region, however...
Words: 1579 - Pages: 7
...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 had in industrial affairs. Starting in the 1950s nations like china began taking steps towards centralized government through reform. One example of this would be the Chinese land reform of the 50s under the new Mao Zedong's communist regime (Blecher, 2010:p.27). This land reform took away the oligarchic control of the landlords, changing the feudalistic policy of landlordism over to a more capitalistic form of socialism in which the government has the control. This is clearly a very vital part of the industrialization process as many nations that have failed with the agrarian reform continue to find themselves struggling to get out of poverty. A modern example of this would be Brazil, where the rural landlords have stalled any sort of reform that...
Words: 1127 - Pages: 5
...and ideals is a hotly debated topic within economics. The ideals the two theorists create, each substantially creditable in their own right, entail degrees of correlation and variation. Leaving the conclusion, do the to patterns of economic thought complement one another or is there distinct disparity between the two. Applied examples will be used below to analyse the extent of segregation or association between the works of Rostow and Gerschenkron. The two theories of work are mainly discussed with Asian development as it is more relevant, timely and there is significantly more information available than previous developed countries such as Great Britain. Walt Whitman Rostow developed one of the major historical models of economic growth in 1960, The Stages of Economic Growth: A non-communist manifesto. This piece portrays the process of economic development in a previously unseen approach, evidently forging it as a milestone in economic literature. Rostow's Stages of Growth model, The five stages are (1)...
Words: 2849 - Pages: 12
...context of the dynamics of world capitalism, indicate the policy challenges in the process of recovery and analyze its impact on South Asia. I. STRUCTURAL CHANGE AND FRAGILITY OF THE FINANCIAL SPHERE In the process of its growth the world economy has undergone a structural change in the post war period in terms of two important features: (i) The dominant form of the production unit of goods and services that emerged in the post war period was the large multinational corporation (MNC) in contrast to the large national corporation in the late 19th century and the small firm in the late 18th century.1 The MNCs were not only able to sell goods and services on a global scale but were able to achieve internationalization in their production processes, such that different components of a particular good could be manufactured in their facilities in different countries to take advantage of country specific resource 1 For a more detailed analysis of Growth and Structural Change in the Global Economy since the Industrial Revolution, See: Akmal Hussain, Imperialism, in, Syed B. Hussain (ed.), Encyclopedia of Capitalism, Volume-II, Golson Books Limited, New York, 2004. 1 endowments. This laid the basis of an unprecedented growth in productivity, and profits. Given the problem of investing these profits within the sphere of production, due to demand constraints, profits from the sphere of production...
Words: 3201 - Pages: 13
...From the Asian Miracle to an Asian Century? Economic Transformation in the 2000s and prospects for the 2010s: Review Essay The chosen article, “From the Asian Miracle to an Asian Century? Economic Transformation in the 2000’s and prospects for the 2010s” by Dr. Yiping Huang and Bijun Wang was published by the Reserve Bank of Australia (RBA) as part of proceedings of their annual conference “The Australian Economy in the 2000s” held by Bank's Economic Group. 1.Introduction The article examines Asian economies key transformation during the 2000s and provides prospects for the next decade. In this review essay, I will summarise the article consistent with sections provided by the article and offer appraisal from the economic and political perspective of the proposed prospects. Post significant transformation of Asian economic during the 2000s, the Asian markets is now major contenders in the global market. Their participation in the global market has reached a point where their actions bring global economic impacts of great consequence for the financial, commodities and goods markets. This rapid expansion into the global market brings concerns of potential global economic crisis. 2. Integrated Supply Chains and Dominant Commodity Consumers Past decade reveals integration of supply chains, industrial restructuring and labour allocation contributed to overall Asia market’s GDP growth with major acceleration from China and India. Vertical integration of supply chains with China...
Words: 1952 - Pages: 8
...International Research Journal of Social Sciences_____________________________________ ISSN 2319–3565 Vol. 2(8), 48-54, August (2013) Int. Res. J. Social Sci. India and China: Prospects and Challenges Mehraj Uddin Gojree Department of Political Science, Aligarh Muslim University, U.P., INDIA Available online at: www.isca.in Received 16th July 2013, revised 27th July 2013, accepted 12th August 2013 Abstract This paper seeks to assess the future prospects and challenges of the relationship between the two rising giants of Asia namely China and India. As they both are rising as great powers, their mutual relationship will have a significant impact not only on Asia, but on the whole world. At present, the nature of their relationship is something mixed i.e., growing cooperation in the field of trade and commerce along with distrust and mutual suspicions in the strategic fields whether political or geographical. For these apparent factors, the future relationship between India and China can be characterised by the cooperation in those fields whether mutual, regional or international which may be beneficial for the peaceful rise of both these states and confrontation, competition, and even hostility in some other areas where the respective interests of both the giants clash with each other, for example, the border issue, relationship with other countries particularly US and Pakistan, their encirclement policies, competition for energy resources, nuclear arms race...
Words: 5602 - Pages: 23
...4. ECONOMIC DEVELOPMENT: A CHANGING FOCUS 4.1 Introduction The large impact of TFP growth on economic growth (on average 56.5%) found in the previous section provides a sign that there were also other factors, besides physical capital, which were important for economic growth. However, because TFP growth is calculated as a residual, it is unclear which factors are captured by TFP growth. Whether this was technology, as was often assumed, or whatever other factor, could not be decided based on this evidence. This was less a problem in early development economics when development was looked upon as (lack of) physical capital accumulation (see for example Lewis 1955). As physical capital accumulation was inserted in the growth accounting exercise, the TFP growth could simply be interpreted as technological growth. Yet, with the rising importance of other, social, indicators such as health, literacy, and human capital, the growth of TFP could reflect the growth of these social indicators as well. 4.2 A classic view: GDP and physical capital On the basis of per capita GDP data provided by Maddison (2003), we may conclude that the levels of per capita GDP were about equal in India, Indonesia, and Japan around 1800. However, in the course of the nineteenth century they started to diverge. In 1890 Japan was already clearly ahead, having a gap in per capita GDP of 35% with Indonesia and 65% with India (see figure 1.1). Indeed, figure 1.1 shows that from 1870 onward there...
Words: 2232 - Pages: 9
...the continent”( Historica Canada, 2015,np ). Religion and Minority-Language Education form one of the fundamental themes in the history of Canada’s learning society -A high level of educational dispute and disagreement has involved religion and language. The founding of schools brought local training under official examination and forced communities to accept the recommended standards of basic instruction which did not agree with the reality of a multicultural society. For example,” …religious groups did not always agree on the desirability of nondenominational Christian curricula, and their protests led to the growth of parallel Catholic and Protestant school systems in Québec, the provision for separate schools in provinces such as Ontario, and a completely denominationally based school system in Newfoundland (Historica Canada, 2015, np). The higher levels of Asian immigration and rising prejudice developments continued to form one of the fundamental themes in the history of Canada’s learning society, schooling developed somewhat differently on the West Coast than in the rest of Canada. One noteworthy...
Words: 1109 - Pages: 5
...global market. Discussions of findings 1. Literature review The so-called global market is, in fact, not new in the world history. As examined by Giovanni (1999), global market has developed through 3 stages. The first stage was under the British hegemony which came into existence in the second half of the nineteenth century through the extension of the industrial revolution to long-distance transport and communication. Thirty years after the industrial revolution began; the rapid development of railways and steamships was forming the world into a single interacting economy as never before. The most remote parts of the world began to be linked together by means of communication which had no precedent for regularity, for the capacity to transport vast quantities of goods and numbers of people, and above all, for speed (Hobsbawm, 1979 cited in Giovanni, 1999). With this advanced system of transportation and communication, world trade expanded at unprecedented rate. According to Hobsbawm, the values of trade exchanges between Britain and the Ottoman Empire, Latin America, India and Australasia increased about sixfold. Not until the first half of the 20th century did witness the destruction of this first global market due to a gradual weakening of Britain’s global power. The British centered global market collapsed in the 1930s. After the...
Words: 1658 - Pages: 7
...economic subject of your interest. Accordingly please select your group so that each member can work on different dimensions of your research subject. Economic Issues related to the BRICS China: Facing the 21st Century China is without doubt currently the most dynamic force in Asia; it may be the most dynamic force in the world. Moreover, if China continues along its present trajectory, its growth will inevitably change the face of Asia. How did China do this? Where is China heading? What is happening in China? How did China do this? • What are economic strengths and challenges facing China today? • What is the impact of China's growth on other Asian countries? • What are the critical next steps for China in terms of its currency? What are their problems? India: Facing the 21st Century Some say we need to talk about “Chindia” as the new dynamic growth economy. India alone has shown growth of over 9 percent and is one of the fastest growing nations in Asia. • What are India’s economic strengths and challenges? • How did India achieve its growth? • Where is India heading with regards to China? • What is the impact of India's growth on other Asian countries? Brazil: Should it be part of BRICS? With slow growth and low saving to GDP ratio some question if Brazil should be included in the BRICS economies. But it is more developed than China or India....
Words: 479 - Pages: 2
...technological advances (Faragher, Buhle, Czitrom, & Armitage, 2009). The 1400s marked a time of exploration and expansion for Europe. The three developments that stimulated the age of exploration for Europe was the Merchant, the Renaissance, and the Portuguese Voyages. The Merchant was a factor that made Europeans want to explore. One reason why Europeans wanted to go exploring was economic. “The economic growth of the late Middle Ages was accompanied by the expansion of commerce” (Faragher, Buhle, Czitrom, & Armitage, 2009, p. 27). Commercial expansion stimulates the growth of markets and many European towns. Europeans had been in contact with Asia from the time of the Mongol conquests until the 14th century (Faragher, Buhle, Czitrom, & Armitage, 2009). They had heard about the East through things like accounts of Marco Polo’s journeys. They had become very aware of the silks and spices and other things that came from Asia, but then the Mongols were defeated by the Ming Chinese and the Ottoman Turks conquered the Byzantine Empire, which in turn cut Europe off from Asian trade. Therefore, people like the Portuguese had a motive to start exploring for ways to get to Asia by sea. “During the late Middle Ages, the cities of Venice, Genoa, and Pisa launched armed...
Words: 1069 - Pages: 5
...Nancy Foner compares two distinct waves of immigration to New York, from 1880 to 1920 and from 1965 to present, to illustrate how immigrants have impacted the city across time. In her comparative studies of New York immigration patterns, she highlights certain trends that immigrants have shaped throughout these two eras. For centuries, immigrants have dynamically enriched the city’s multicultural landscape and developed its commercial and industrial infrastructures. Yet, although mobility has increased for recent female arrivals of color, they still face a domestic confinement that their predecessors endured between 1880 and 1920, and immigrant marginalization continues on the basis of gender. Although immigrant women of color continue to face gender subordination as they gain econo-physical mobility, Foner argues that many immigrants have thrived while driving New York’s economic and cultural growth. Recently-arrived professionals revitalize its economy and geographically-diverse newcomers continue to embellish its cultural traditions by forming network-based ethnic enclaves, progressively making the city a more welcoming and prosperous immigrant destination....
Words: 978 - Pages: 4
...CHAPTER 1: INTRODUCTION TO CALIFORNIA POLITICS INTRODUCTION “It's 90 degrees in November, the full glory and perennial curse of Southern California on fierce display. Devil winds, hill-hopping infernos, smoked mansions, torched trailers, barren freeways, and brilliant sunsets lingering in low-hanging canopies of burnt dreams. Are we all crazy? Don't live here, says the wind, the trembling earth, the parched land whose natural inclination is to explode in flame every year about now. But we do. Don't build near the kindling, say the voices of common sense. But we do, for all the wrong reasons and all the known glories. Our winter snowfall is flakes of ash and flame retardant falling on bougainvillea, so it could be worse. The Earth shakes. The fires rage. The population expands. And the sunsets are brilliant, especially this time of year.” -Steve Lopez, columnist for the Los Angeles Times November 17, 2008 “Everyone is welcome. As you know, I'm an immigrant. I came over here as an immigrant. What gave me the opportunities, what made me be able to be here today, is the open arms of Americans. I have been received. I have been adopted to America. I have gotten all the opportunities because of America. I have seen first hand, coming over here, with empty pockets, but full of dreams, full of desire, full of will, to succeed. But with the opportunities that I had available, I could make it. And that's what I want everyone to be able to do. This is why we have to get back and bring...
Words: 2830 - Pages: 12
...development in East Asia? The rise of Asia’s so called “Tiger” economies followed by China, has given rise to the spectrum of a distinctly East Asian economic development model. The pioneering economic success of in particular, Singapore, South Korea and Japan since the 1970’s has highlighted the need to evaluate and distinguish how such economies achieved such successive growth. A variety of possible factors can explain or highlight possibilities for the successive development of East Asia. A particularly unique factor that has to be taken into account is Confucianism. The interplay between culture and development can help explain how in particular Japan and South Korea, which were relatively closed societies, have risen to attain the status of newly industrialized countries. This essay will investigate and evaluate, through the presentation of arguments and examples, the extent to which Confucianism has influenced modern economic development in East Asia. This will be achieved by firstly providing a working definition of Confucianism; then locating its positive impact within a broader debate concerning a distinctly Asian development model; investigating and analyzing the challenges presented by Confucianism in the economic development of East Asia; evaluating both the negative and positive implications of Confucianism in East Asian economies and finally assessing to what extent Confucianism has played a role in the development of East Asia’s economies. Confucianism attained...
Words: 1810 - Pages: 8
