The East Asian model of economic development and developing countries

Thèmes abordés

East Asian model - economic development - developing countries -East Asian crisis

Résumé du document

Jong H Park is a professor at Kennesaw University, where he works at the the Department of Economics & Finance, Coles College of Business. In 1991, he got a PHD from Massachusetts Institute of Technology, where he also graduated with a Master. The THE EAST ASIAN MODEL OF ECONOMIC DEVELOPMENT AND DEVELOPING COUNTRIES was written in 2002, 5 years after the Asian crisis, which allow the author to analyze the situation with a significant background.

This article analyze the East Asian crisis and economical model from different point of view. He tries to link the differences and similarity in terms of economy, culture, history, between the Asian countries, in order to provide an explanation to the development and to the impact of the crisis. He particularly insist upon the role of the government to explain the limitations of markets, and the impact on the possible end of the East Asian model of economic development.

Extraits

[...] For Park there also have as common points : the role of government in general 2 - industrial policy 3 - attitudes and policies towards FDI and technology transfer 4 - incentives and policies for export-led growth. The author concludes that, despite the problems, the Asian crisis doesn't mean the end of the East Asian model of economic development. The model obviously has been questioned, but it is not itself synonymous for crisis. For the author, the important is that governments and the strategy they adopt have to be used in the right way, locally, according to individual country. [...]

[...] The east asian model of economic development and developing countries, analyses of jong h park Introduction Jong H Park is a professor at Kennesaw University, where he works at the the Department of Economics & Finance, Coles College of Business. In 1991, he got a PHD from Massachusetts Institute of Technology, where he also graduated with a Master. The THE EAST ASIAN MODEL OF ECONOMIC DEVELOPMENT AND DEVELOPING COUNTRIES was written in years after the asian crisis, which allow the author to analyze the situation with a significant background. [...]

[...] Key words East Asian Development Paradigm Governance and Institution Building Government and central planning Soviet model Analyses In this article, Jong H. Park, starts to introduce the east-Asian crisis, for which he uses the expression “from miracle to crisis”. The failure of the East-Asian model, is mainly due to the intervention of the government in the economy, but also to a currency problem (exchange rate misalignment), and the weakness of the bank-centered financial system. All these issue discouraged foreign investments. [...]

[...] They developed central planning an tried to develop as much as possible the industry. If this strategy was successful in the 1950s and in the 1960s, however, some problems appeared over the time : controls started to breed rent-seeking activities, stifling efficiency in resource allocation, production, competition, and economic growth. Regarding the other coutries, The author draws attention to the development model of countries such as South Korea, Taiwan, Hong Kong and Singapore which had during this period, an extraordinary economic results. [...]