Advantages Of East Asian Economy

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Abstract: After the Second World War, the East-Asian region achieved a rapid growth of economy and accomplished industrialization in a short period, which has been summarized as “East Asian Model”. The success of East-Asian countries was attributed to the government interventions adopted by the states. This essay will put forward three aspects to analyze why this model has succeeded in history. Specifically, appropriate development strategies, strong state interventions and efficient administrations are important factors for the economic miracle happened in East Asia. I.Introduction: Since the 1970s, the economic achievements made by Japan, South Korea and Taiwan has aroused a lot of attention. It is widely accepted that the reconstruction…show more content…
The East Asian governments were the most acuminous ones who realized the limitations of a free market system in the middle of 20th century. To neutralize the problems that a free market may bring, the governments adopted strong interventions to allocate the resources and to promote the economy. This model was initiated by Japan who led a government-directed industrialization while South Korea and Taiwan also conducted state-directed production and trade to expand their share in the world market. Followed by Singapore and Hong Kong, these two city economies chose to be completely free to goods and investments, which were based on free market system but with robust influence from the governmental policies. Commonly, all these interventions were trying to use international trade as the principal goal to boost development, either by a state-motivated industry or a stimulus strategy that promotes a total free…show more content…
As a matter a fact, it is true that the success of development strategies or plans are to a great extent guaranteed by a stable and powerful bureaucracy system, which should be the most manifest in authoritarian politics. For instance, the authoritarian regime in South Korean during the post-war period contributed a lot to the economic takeoff. After the destructive civil war, the military forces established the Park Chung-hee regime from 1061 to 1979 and the Chun Doo-hwan regime from 1980 to 1988, during which South Korean experienced a political stability and rapid economic growth. These two governments set their goals as to accelerate the pace of economic growth under a highly centralized political system whose policies were virtually with no opposition, enabling the governments to launch and carry out some progressive transformations for the society, which could hardly be realized in democratic political systems. Culturally, this authoritarian tradition did a great job in stabilizing a turbulent society and pushing it to the channel of development, even though there were dictatorship and brutality happening all the

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