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POLS 373 Foundations of Comparative Politics Lecture: Why is East Asia Rich? Part 2, The Importance History • Explanations of East Asian Development Why is East Asia Rich? Historical Context Significant Historical Factors

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POLS 373 Foundations of Comparative Politics

Lecture: Why is East Asia Rich?

Part 2, The Importance History • Explanations of East Asian Development


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Why is East Asia Rich?Historical Context

Significant Historical Factors

  • Most, albeit not all, scholars agree that any explanation or understanding of East Asian development must begin with an examination of important historical factors

  • In the three East Asian societies, these might include* …

    • Confucian Culture

    • Colonialism (Western and Japanese)

    • Cold War and the “Special Relationship” with the United States

      * This is not meant to be a complete list, only a very, very basic starting point

歴史

* The Chinese characters for history


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Why is East Asia Rich?Historical Context

Significant Historical Factors

Confucian Culture

Confucianism is said to characterize the cultures of Japan, Korea and Taiwan, which some observersargue is a significant commonality

It is an ethical and philosophical system supposedly based on the principles governmental morality, filial piety(respect for elders), high regard for education, righteousness, and social virtue

歴史


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Why is East Asia Rich?Historical Context

Significant Historical Factors

Colonialismis generally associated with the Western“project”of usurping the sovereignty and dominating militarily weaker societies for the purpose of exploiting their natural resources, labor and markets

歴史

All three East Asian societies were part of the colonial system, although Japan joined the West in dominating and exploiting its neighbors, Korea and Taiwan (and also parts of China)

Koreans launching an independence movement against Japanese colonial rule in 1919


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Why is East Asia Rich?Historical Context

Significant Historical Factors

Analytical Note. Students and others often make the mistake of treating historical facts, such as“colonialism,” too generally

For example, saying “colonialism” either led to orprevented economic development doesn’t tell usmuch

Instead, we need to know what specific elements ofcolonialism were important and why: What were theconcrete effects of colonialism? How did colonialismchange a society, if it did? What were those changes?

歴史

Keep these points in mind.


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Why is East Asia Rich?Historical Context

Significant Historical Factors

Concrete Impact of Colonialism in East Asia

  • In general, precipitated significant social, political, institutional, and economic changes in Japan, Korea, and Taiwan

    Destroyed or fatally undermined old powerstructures; gave rise to highly centralized state

    Enabled rise of new, very powerful class of capitalistsand entrepreneurs (with close ties to state)

    Unleashed nationalist forces

    Introduced new modes of production, new formsof economic organization

歴史


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Why is East Asia Rich?Historical Context

Significant Historical Factors

Cold War and East Asia’s “Special Relationship” with the United States

歴史

  • During Cold War, Japan, South Korea and Taiwan became bastions of anti-communism and extremelyclose allies of the United States

  • More generally, Cold War split world into two hostile “camps,” sometimes pitting “brother against brother,”as was the case with the two Koreas

Video removed

(available as a separate download)

North and South Korea: Still locked in the Cold War era


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Simple Lesson

History matters


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Why is East Asia Rich?Historical Context

Understanding the Use of History

  • Analytical Note, 2. To show that “history matters” it is critical to show how the past affects the present; history is important insofar as it helps explain present and future conditions (click here to see simple graphic)

    Example. East Asia’s specific experience with colonialism matters today because it may explain why …

    • the East Asian countries have similar types of states, which some scholars argue is the key to understanding East Asian economic success

    • state leaders in East Asia have focused on national developmentalgoals as opposed to self-serving corruption

    • how social obstacles to capitalist development--such as resistance by the “landowning” agricultural class--were overcome

歴史


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Why is East Asia Rich?

The Rational Choice Perspective


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Starting point

Why is East Asia Rich?The Explanations: Rational Choice

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


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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


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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

}Aspects of a “strong state

}

Uniqueness of East Asian States is key!


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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

NOTE: Corruption has been/is evident in all three states, but relatively limited


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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 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”


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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?


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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?


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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


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Why is East Asia Rich?The Explanations: Rational Choice

The East Asian States: 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 tradewith the United States: Japanese leaderssaw this as a precursor of subordinationto “barbarians”


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Why is East Asia Rich?The Explanations: Rational Choice

The East Asian States: 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)


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Why is East Asia Rich?The Explanations: Rational Choice

The East Asian States: 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

Video removed

(available as a separate download)


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Why is East Asia Rich?The Explanations: Rational Choice

The East Asian States: 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”

Left: A North Korean soldier • Right: A People’s Army soldier


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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-orientedindustrialization (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?


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Why is East Asia Rich?

The Cultural Perspective


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Why is East Asia Rich?The Explanations: Cultural Perspective

Beware of simplistic cultural arguments!

  • Most contemporary culturalists agree that culture matters, or is relevant to an explanation of East Asian development

  • However, no “good culturalist” argues that cultural factors alone can explain the economic rise of East Asia

  • Still, there are plenty of superficially appealing, but problematic cultural arguments about East Asia’s economic success: The “Old” Confucian Argument is one of these


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Why is East Asia Rich?The Explanations: Cultural Perspective

The “Old” Confucian Argument: Key Points

  • Values of Confucianism inculcate important values among ordinary people: hard work, respect for education, thriftiness, self-sacrifice, etc.

  • Values of Confucianism provide model for good government: virtuous, meritorious, and non-corrupt

  • Values of Confucianism created particularly effective institutional basis for government-business and business-labor relations--allowed the East Asian countries to function as single, tightly disciplined, and highly efficient, economic units, encapsulated in the terms “Japan, Inc.” or “Korea, Inc.”


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Why is East Asia Rich?The Explanations: Cultural Perspective

Advocates of the “old” Confucian argument may also note that Asia-Americans exhibit the same tendency as Asians in East Asia. Consider the following statistics: in the US, Asians are much more likely to complete college than any other group: White, 29%, African-American, 14%, Hispanic (non-white), 11%, Asian, 50%. In America’s elite colleges, Asian American students are dramatically “over-represented.” At UC Berkeley, for example, 46% of freshmen in 2006 were Asian American. In addition, Asians made up 24 percent of the undergraduate population at Carnegie Mellon and at Stanford, 27 percent at the Massachusetts Institute of Technology, 14 percent at Yale and 13 percent at Princeton. To put these numbers in perspective, consider that Asian Americans are only 5% of the US population. These figures tell us something.

The “Old” Confucian Argument: Key Points

  • One of the most salient Confucian values is respect for education

    In East Asia, the enormous emphasis put on educational achievement, so the argument goes, has not only given East Asian societies a huge competitive advantage over less educated and less skilled societies, but also has allowed East Asia to catch up with the West more quickly than would otherwise have been the case

A 12-year old Japanese student cramming for school exams during the winter holiday


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The “Old” Confucian Argument: An Example

“The East Asian economic miracle was built on a number of sturdy pillars: hard work, high savings rates and Confucian values in particular, an almost fanatical belief in the value of education. And for years, Asia could rest easy in the knowledge that its school systems were producing the best and the brightest. Rising GDPs were proof …. East Asian students almost always scored higher in international math and science tests across the board, country by country than their counterparts in the West. All you had to do was walk into an Asian classroom to see what they were doing right. Students were diligent, quiet, involved in copying down the daily lessons. It was nothing like the chaos of, say, American schools with the spitballs and pierced eyebrows and the emphasis on attitude with-a-capital-A.”

Quoted from “School Daze,” Time Magazine (available online at http://www.time.com/time/asia/features /asian_education/cover.html)


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Why is East Asia Rich?The Explanations: Cultural Perspective

The “Old” Confucian Argument

The basic Confucian argument, on the surface, sounds reasonable …

So what’s the problem?

Work hard! Respect your elders! Be virtuous! Value education! Be meritorious!

A problem?

=


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Why is East Asia Rich?The Explanations: Cultural Perspective

The problem with the “old” Confucian argument

  • Generic and overly general: Assumes that Confucianism is the same in all East Asian societies

  • Superficial: Fails to account for the different ways in which Confucian values have been embedded into different societies

  • Unidirectional: Does not explain why and how Confucian values did not lead to rapid development in earlier periods

  • Simplistic: Fails to account for how cultural values interact with political, social and economic processes to produce specific outcomes in specific contexts


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Why is East Asia Rich?The Explanations: Cultural Perspective

Confucian Values and East Asian Development: A Better Approach

  • In place of an all-encompassing Confucian argument are approaches that examine the relationship between culture and economy with careful regard to specific contexts

    • Consider the examples discussed in the chapter: capitalist development and Confucianism in Japan and Taiwan


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Why is East Asia Rich?The Explanations: Cultural Perspective

Confucianism in Japan and Taiwan: Comparison

Japan: In prewar period, Confucianism successfully used by political and economic elite to create new national culture, one that made capitalist development a patriotic and moral duty

  • Encouraged self-sacrificing behavior on part of citizenry and workers

  • Allowed extraordinarily rapid mobilization of resources, large-scale investment and dramatic increases in output

  • Justified (in the minds of workers’ themselves) repression of labor rights, low-wages, long-hours, and generally oppressive working conditions

    Postwar period: Confucianism played similar, but different role based on fairness and harmony (wa), which inspired the Japanese to work “cooperatively, conscientiously, and with a (single) will”


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Why is East Asia Rich?The Explanations: Cultural Perspective

Confucianism in Japan and Taiwan: Comparison

Taiwan: Confucianism not successfully embedded in larger society; instead, inspired an anti-Confucian backlash, a rejection of Confucian values that led to development of “counter-culture” based on “heterodox” values

  • Inspired self-serving behavior and rejection of authority; this is evident in large number of smaller firms

  • Created basis for a free-wheeling, hypercompetitive domestic market

  • Encouraged development of “group corporations,” which are networks of informally, but strongly connected businesses based on personal connections (functional substitute for large, hierarchically organized corporations)


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Why is East Asia Rich?The Explanations: Cultural Perspective

Confucianism in Japan and Taiwan: Comparison

Five Key Points/Summing Up

  • Confucianism played a role in the economic development of both Taiwan and Japan, but it played a very, very different role

  • In both cases, Confucianism interacted with social, political, and economic forces to produce specific outcomes

  • In both cases, Confucianism was manipulated or co-opted as a political resource; nonetheless, it was part of the culture in both societies

  • “Confucian culture” did not remain the same; this was particular evident in Japan

  • In both cases, Confucianism’s impact on economic development can be seen as both positive and negative


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Why is East Asia Rich?

The Structural Perspective


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Starting point

Why is East Asia Rich?The Explanations: Structural Perspective

A Basic Observation and Starting Point

  • It is a mistake to explain East Asia’s wealth purely or mainly by focusing on internal or domestic factors, such as a “developmental state” or a particular type of culture

  • Instead the explanation must be found by adopting a “global perspective”; that is, we must consider the “big picture” into which the East Asian countries fit


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Why is East Asia Rich?The Explanations: Structural Perspective

A Global Perspective: First Step

  • Identify the “big picture”

    The big picture of East Asian development is the system of ________________________.

global capitalism

Struturalists tell us that the system-wide dynamics of global capitalism are far more determinative of national economic success than culture, strong states, or a “rational” domestic economic environment


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Why is East Asia Rich?The Explanations: Structural Perspective

A Global Perspective: Additional Steps

  • Identify the dynamics, logic, and “needs” of global capitalism

  • Identify the position and role of the various units (i.e., countries, such as Japan, South Korea, and Taiwan) in the system as a whole

  • Identify the position and role of the various units in relation to the dominant unit or units, namely, the United States

  • Finally, consider the attributes of individual units (for example, consider whether the individual units have “strong states”)


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Why is East Asia Rich?The Explanations: Structural Perspective

World-Systems Theory and East Asian Development

  • One structural theory, World-Systems, provides answers to many of the questions posed on the preceding slide …

    Basic logic: Capitalism is driven by the constant need for accumulation and expansion; to do this, capitalism requires strong centers throughout the globe

    Role of Units in System: Hegemon required to police and stabilize system; certain “core” units are needed to serve as regional centers of capitalism, and each core requires subordinate units to maximize capital accumulation; these subordinate units are part of the semi-periphery or periphery

    Role of Units in Relation to Dominant Unit: Close relationship to dominant unit (the hegemon) ensures economic stability and growth; if subordinate units occupy favorable position in global system, this relationship may be key

    Individual (State-level) Attributes: Can play a marginally important role in developmental path as system occasionally “allows” subordinate units to take advantage of opportunities for upward mobility


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Why is East Asia Rich?The Explanations: Structural Perspective

World-Systems Theory and East Asian Development

  • Importance of Hegemony

    Under certain conditions, the hegemon’s actions allow otherwise subordinate units to move up: this was the case with Japan, as the emergence of the Cold War compelled the United States to build a center of capitalism in Asia

    After the “loss” of China, in short, Japan was “selected” by the United States to be the regional center of capitalism in Asia

    The importance of Japan as a regional center of capitalism was highlighted in Dwight Eisenhower’s famous “falling dominoes” speech (1954)


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“Falling Dominoes” Speech, Dwight Eisenhower, April 7, 1954

Q. Robert Richards, Copley Press: Mr. President, would you mind commenting on the strategic importance of Indochina to the free world? I think there has been, across the country, some lack of understanding on just what it means to us.

A: You have, of course, both the specific and the general when you talk about such things. First of all, you have the specific value of a locality in its production of materials that the world needs. Then you have the possibility that many human beings pass under a dictatorship that is inimical to the free world.

Finally, you have broader considerations that might follow what you would call the "falling domino" principle. You have a row of dominoes set up, you knock over the first one, and what will happen to the last one is the certainty that it will go over very quickly. So you could have a beginning of a disintegration that would have the most profound influences (…)


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“Falling Dominoes” Speech, Dwight Eisenhower

[CON’T] Now, with respect to the first one, two of the items from this particular area that the world uses are tin and tungsten. They are very important. …. Then with respect to more people passing under this domination, Asia, after all, has already lost some 450 million of its peoples to the Communist dictatorship, and we simply can't afford greater losses.

But when we come to the possible sequence of events, the loss of Indochina, of Burma, of Thailand, of the Peninsula, and Indonesia following, now you begin to talk about areas that not only multiply the disadvantages that you would suffer through loss of materials, sources of materials, but now you are talking really about millions and millions and millions of people.

Finally, the geographical position achieved thereby does many things. It turns the so-called island defensive chain of Japan, Formosa, of the Philippines and to the southward; it moves in to threaten Australia and New Zealand. It takes away, in its economic aspects, that region that Japan must have as a trading area or Japan, in turn, will have only one place in the world to go -- that is, toward the Communist areas in order to live.


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Why is East Asia Rich?The Explanations: Structural Perspective

Key points: Japan’s Economic Rise

  • Japanese postwar development was premised on the need to establish a strong foundation for capitalism in Asia

  • At first, Japan was not meant to play this role--the original designee was China--but the communist victory in China gave Japan a new lease on life

  • The general threat of communism in Asia, moreover, made Japan an even more important regional center: helps explain why Japan was given unprecedented and largely one-directional access to American markets

  • Japan also received military aid from the U.S and guaranteed protection, which allowed Japan to focus its capital on civilian goods, thus leading the way toward domination of a wide range of consumer markets


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Why is East Asia Rich?The Explanations: Structural Perspective

World-System: South Korea and Taiwan

  • Japan’s economic rise also explains the rise of South Korea and Taiwan

    Basic Logic: Just as Japan was “chosen for development,” so too were South Korea and Taiwan, but they were chosen to serve the needs and demands of Japanese development first and foremost

    Because both countries also became important bastions of anti-communism in their own right, moreover, they were singled out by the global hegemon (the U.S.) for even more special privileges


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Why is East Asia Rich?The Explanations: Structural Perspective

The Flying Geese Model of Industrial Development

The dynamics of economic development in South Korea and Taiwan were different from Japan’s development

South Korea and Taiwan were selected to serve as “receptacles” for declining industries in Japan and as receptacles for Japanese goods

Neither Korea nor Taiwan were the preferred choice, but they proved to be the most practical choices in the context of the Cold War

In short, South Korea and Taiwan were“invited” to develop


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Why is East Asia Rich?The Explanations: Structural Perspective

World-Systems Theory: Issues and Questions

  • While very similar in some respects, the economic development of the three East Asian economies is also very divergent: Does World-Systems explain this?

  • World-systems may explain why Japan, South Korea and Taiwan were “chosen” for development, but it does not tell us, except in a very general manner, how each developed into economic rivals of the United States in major industrial sectors

  • World-systems cannot easily explain the ability of South Korea and Taiwan to break free of the product cycle or “flying geese” model


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Why is East Asia Rich?Addendum: The Importance of History

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