What Are the Main Characteristics of East Asian State?

What are the main characteristics of East Asian State?

• Most discussed East Asian States are Japan, South Korean, Taiwan, Hong Kong and Singapore.

• Recently, other States such as Malaysia, Indonesia and Thailand were also recorded sustained and rapid growth of per capita income.

• Also known as Developmental Welfare States

• ‘Capability of government’ which also mean the intervention of the government

• Theme of development state is based on 3 critical conditions

-the development ideology, or pressure for development

-the capability of government for development

-its capacity for overcoming any possible reactions against development

• Bribery, corruption, difference of class status, etc limited the state capacity, pressure for development and overcome reaction against development

• East Asian states stood out against rising collective welfare demands within society, rather than respond to people’s needs in order to speed up the process of accumulation and development.

• In turn, the situation of ‘labour subordination’

• Another characteristic was the culture of the East Asian states, Confucius study, whereby family is most important but on other hand, lack of social welfare.

• What made people around the world curious about the East Asian states? Is the ability to sustain, to overcome crisis rapidly.

• As from the previous lesson, 5 factors that contributed to East Asian miracle

1. Outward looking policies, Exports emphasis and FDIs

2. Macroeconomic policies and role of government, to support growth and monetary

3. Education, labor force and labor productivity

4. Labor market flexibility

5. Sectorial policies, shifts from agriculture to industries

6. High savings

• However, financial sector is still weak due to excessive reliance of banks and weak banking regulations

• Krugman agrued in an influential paper that the success was unlikely to be sustainable as the miracle was based on greater use of inputs rather than productive use of...