POLS 373 Foundations of Comparative Politics Lecture: Why is East Asia Rich? Part 2, Rational Choice Perspective Professor Timothy C. Lim California State University, Los Angeles tclim@calstatela.edu

Why is East Asia Rich? The Explanations The Rational Choice Perspective

Why is East Asia Rich? The Explanations: Rational Choice STARTING POINT A Basic Observation and Starting Point From a rationalist perspective, what is unique or unusual about the three East Asian countries, Japan, South Korea and Taiwan (that is, besides their rapid economic growth)? Many possible answers, but one feature stands out: each country has a strong, effective ________________ state

Why is East Asia Rich? The Explanations: Rational Choice The State: A Basic Definition A state is a set of institutions that possess the authority to make the rules that govern people living within a defined geographic space or territory. By definition, a state has both external and internal sovereignty. The state includes such institutions as the armed forces, civil service or state bureaucracy, courts, and police. Within any state can exist multiple governing authorities (or governments). By Max Weber’s influential definition, a state has a “monopoly on the legitimate use of physical force within a given territory.” Source: Adapted from http://en.wikipedia.org/wiki/State

Why is East Asia Rich? The Explanations: Rational Choice The State: A Basic Point In principle, all states are the same; in practice, however, states differ significantly from one another in terms of … ability to make and enforce rules effectiveness of key (bureaucratic) institutions degree of coherence and unity of purpose among key institutions values, attitudes, and priorities of political leaders accountability to citizens degree of independence from social forces and societal actors policy preferences Key aspects of a “strong state Uniqueness of East Asian states is key!

Why is East Asia Rich? The Explanations: Rational Choice The East Asian States: Overview Japan: Strong and relatively independent bureaucracy with significant powers; democratic political system, but high degree of regime stability (one party, the LDP, dominated Japanese politics for most of the post-war period); leadership committed to national economic development South Korea: From 1961-1986, military authoritarian rule (weak, corrupt democracy from 1948-1960); post-1961 government very strong and effective, but subservient bureaucracy; after 1961, authoritarian leadership committed to building military, industrial and economic power Taiwan: Military authoritarian rule for most of post-war; political elite from mainland China (fled after losing to communists); strong and effective bureaucracy; authoritarian leadership committed to building military, industrial and economic power

Why is East Asia Rich? The Explanations: Rational Choice The East Asian States: Overview In short, all three East Asian states were strong, stable, “efficient,” and committed to national economic development They were/are what is now known as … Developmental States The East Asian economies, excluding Japan, but including Hong Kong and Singapore are also known as the “Four Little Dragons” or the “Four Tigers”

Why is East Asia Rich? The Explanations: Rational Choice The East Asian States: Some Questions Understanding that the East Asian states were “developmental” is only part of the rational choice explanation: we also need to know … what makes it in the private interests of those in power to implement policies designed to secure public goods (i.e., national economic development)? what makes in the political interests of the holders of power to adopt policies that promote national economic development? In short, why were the East Asian states developmental in the first place?

Why is East Asia Rich? The Explanations: Rational Choice The East Asian States: Some Questions From rational choice perspective, these questions have particular pertinence with regard to South Korea and Taiwan, two non-democratic or authoritarian regimes Two basic questions arise … Why would strong, authoritarian states pursue national development goals instead of engaging in self-serving corruption? What was it about the strategic environment that made the former a rational decision as opposed to the latter?

Why is East Asia Rich? The Explanations: Rational Choice The East Asian States: The Strategic Environment What were the key elements of the strategic environment for the three East Asian? Basic answer The power to rule and political legitimacy were both intimately tied to national economic development; staying in power, in other words, was contingent on maintaining broad, popular support and/or cooperation Basic reason Profound sense of national _____________________ vulnerability

Why is East Asia Rich? The Explanations: Rational Choice The Strategic Environment The importance of national vulnerability National vulnerability motivated leaders to understand that their political survival was intimately connected to the strength of the country as a whole, which, in turn, was linked to the strength of the national economy In Japan, this vulnerability was first set into motion during the 19th century with continuing thrust of Western imperialism and the threat of foreign domination In the mid-1850s, Japan was compelled, through threat of military force, to trade with the United States: Japanese leaders saw this as a precursor of subordination to “barbarians”

Why is East Asia Rich? The Explanations: Rational Choice The Strategic Environment The importance of national vulnerability Unlike many other non-Western countries, Japan had tremendous internal capacity for industrialization and modernization The humiliation of the “Black Ship” incident, moreover, compelled a nationalist effort to “expel the foreigners” through the creation of a “Rich Country, Strong Military” A changing strategic environment, in short, provided the rationale for the creation of a centralized state devoted to rapid industrialization Emperor Meiji (1852-1912)

Why is East Asia Rich? The Explanations: Rational Choice The Strategic Environment The importance of national vulnerability In the post-war period, Japanese leaders were made more accountable to citizens through imposition of democracy (by the United States) Political appeal of left-wing parties (socialist and communist Parties) put severe pressure on mainstream party (LDP) to pursue national developmental goals Renunciation of military power (in new “Peace Constitution”) gave greater priority to economic power

Why is East Asia Rich? The Explanations: Rational Choice The Strategic Environment The importance of national vulnerability In South Korea and Taiwan, colonialism contributed to profound sense of national vulnerability (but was not enough by itself) Existence of serious external threats was also key: North Korea in the case of South Korea, and mainland China in the case of Taiwan Domestic political opposition very strong in both countries: thus, to prevent possibility of society-wide protest and violence (even under authoritarian rule), political leaders had to deliver the “economic goods”

Why is East Asia Rich? The Explanations: Rational Choice Final Notes and a Caveat Rational choice arguments are not all the same Other scholars (usually economists) using a rational choice perspective have come to almost diametric conclusions about the reasons for the East Asian economic success Specifically, many completely reject the notion that the state had anything to do with East Asian industrialization • Instead, they focus on the significance of export-oriented industrialization (EOI) and competition in international markets What is the logic of this competing argument? How did EOI make the East Asian economies grow so fast?