1. EAST AND SOUTHEAST ASIAN NIEs: 1

3. Achievements of these economies World Bank, 1993. The East Asian Miracle

4. 1. Rapid Economic Growth

5. But variability of levels of economic well-being

6. 2. Dynamic Agricultural Sectors (1980-1990)

7. 3. Rapid Export Growth

8. Share in world exports Share in 3rd world exports Role of Asian NICs as merchandise exporters, 1965-90

9. Leading merchandise exporters, 1973-97 (share of the world)

10. 4. Reduced income inequality and poverty GDP growth per capita Income inequality

11. 5. Rapid Demographic Transitions Development Rates Basis concepts deathsbirthsgrowth

13. 6. High Investment and Savings Rates

14. Private vs. public investment as shares of GDP

15. 7. High rates of investment in human capital

17. The productivity growth issue Sources of productivity growth –accumulations of physical and human capital –total factor productivity growth attributable to: better technology organization gains from specialization etc. World Bank position

18. Paul Krugman’s position Growth is primarily due to accumulations of physical and human capital e.g. Singapore 1966-1990 –employed share of population rises from 27% to 51% –1966--more than 50% of workers have no formal education; by 1990 2/3 have completed secondary education –investment as share of output goes from 11% to more than 40%

19. Alternative perspectives on the East Asian Miracle ( I recommend : John Brohman. 1996. Postwar development in the Asian NICs: Does the neoliberal model fit reality?)

20. The Neoliberal Interpretation Market regulation thesis –eliminated restrictions on international trade –deregulated financial sector –privatized state enterprises –created unregulated labor market export-oriented industrialization –based comparative advantage of low cost labor

21. Criticisms of the Neoliberal Interpretation Except for Hong Kong, substantial state intervention –Taiwan: state ownership –Singapore: public monopolies and parastatals –Korea: encouragement of chaebol guided market economies (like Japan) substantial initial protection of strategic industrial sectors

22. Ignores key historical factors Role of Japan in early 20th C role of U.S. in mid 20th C –much assistance –tolerated early import substitution policy role of Japanese corporations in 1970s