1. Sara Hsu

2.  Societies choose development trajectories based on population, geography, and other factors.  What is development? Concept used after WWII Development theory  Gunnar Myrdal  Convergence v nonconvergence  Washington Consensus  Stiglitz and Sen  Institutionalism  Focus on empiricism

3. Is there a special kind of Asian Development? Reform process: Tier 1: Basic Tier 2: Enhanced Tier 3: Advanced China, India and Japan  Reform in China: 1979 at the Third Plenum  Reform in India: Independence in 1947  Reform in Japan: 1868 with the Meiji Restoration

4.  Began their growth processes intentionally, through guided and targeted economic policies  Began with different initial conditions  Different histories of economic repression  Began at different times  Different global political economies  Selective liberalization

5.  Different geographies  Different levels of human capital and population  Different levels of initial success in reform-China and India began industrialization sooner but failed

6.  Began its growth trajectory during the Meiji era, 1868-1885  Eliminated feudal institutions  Uniformity of money  Machinery  Agriculture  Heavy industry

7.  Post World War One  Zaibatsu  Post World War Two  Devastation and occupation  Increase in exports  Advanced economy

8.  Led by ideology under Deng Xiaoping  Deng Xiaoping Theory  Dual Track System  Household Responsibility System  State Owned Enterprise Incentivization  Price reform  Special Economic Zones

9.  “Reform with Losers”  Privatization  Elimination of Dual Track economy  Joining WTO

10.  Attempted to reform after Independence  Focus on agriculture  Eighties deregulation  “License Raj”  Crisis in 1991

11.  Reforms accelerated after 1991  New Industrial Policy  Reduction in licenses  Reform of banking industry  Special Economic Zones

12.  Japan: reform occurred after the Tokugawa Shogun was defeated and Emperor’s power restored;  China: reform occurred after Mao died and Deng Xiaoping took power-his policies were supported;  India: crisis speeded up the reform process.

13.  Economic development in China, India and Japan has changed the way economists understand political economy of development  Different histories has led to different political economies of development: colonialism, industrialization

20.  Development  Different periods of development, different development trajectories for China, India and Japan  What do the data tell us?