This book explores Asias remarkable economic transformation by examining four key nationsJapan, Korea, China, and India. It presents how these countries sustained high economic growth, leading to prosperity.
The book analyses the four economies through the four pillars: (a) free and open markets, (b) accountable government and effective policies, (c) education and human capital development, and (d) saving and investment, leading to capital accumulation. The analysis reveals that the experiences of the four countries are highly divergent. Against common knowledge that the Asian miracle was based on export-driven, government-led and infrastructure investment strategy, these countries achieved high economic growth by building the four pillars of their own which reflected their history, culture and initial economic situation. Noting that the present global economic environment makes a copy-and-paste tactic impossible for developing economies to follow, the book offers broader insights on institutional reform and the timely exploitation of critical opportunities which will be of interest to other developing nations.
Written by an experienced economist and policymaker, this concise book will appeal to students and researchers of development economics, political economy, and Asian studies. It will also appeal to general readers interested in learning more about global economics and history.
Preface
Chapter
1. Asia's Journey for Economic Growth
1.1 Story of Four Asian Geese Flight
Flying faster and father/ Why these four countries?
1.2 Four Pillars for Higher Economic Growth
Free and open market economy/ Accountable government and effective policies/
Education and human resource development/
Savings and investment, leading to capital accumulation
1.3 Limits of the Analysis and Necessary Caution
Fallacy of backward looking/ Misunderstanding of causation
Chapter
2. Japan, Rise of Mt. Fuji
2.1 Free and Open Market Economy
Japan, kingdom of bureaucrats?/
Forced opening but a disguised blessing
2.2 Accountable Government and Effective Policies
Strategic industrialization by strong coordination/
Mobilizing and channeling money
2.3 Education and Human Resource Development
Terakoya led to modern education system/
Life-long employment and craftsmanship
2.4 Savings and Investment, Leading to Capital Accumulation
The most successful land reform in the world/ Postal savings, World No.1
Chapter
3. Korea, Miracle on the Han River
3.1 Free and Open Market Economy
Diverging paths of South and North Korea/ From wigs to semiconductors
3.2 Accountable Government and Effective Policies
Military Coup led to economic take-off/ Five-year Economic Development Plans
3.3 Education and Human Resource Development
Tower of cow bones/ Seven consecutive wins of World Skills Competition
3.4 Savings and Investment, Leading to Capital Accumulation
Korean college- graduate miners in West Germany/Entrepreneurial risk-taking
Chapter
4. China, Ascension of Dragon
4.1 Free and Open Market Economy
A hybrid of market system/ Zhenghee's last exploration in 1434
4.2 Accountable Government and Effective Policies
Visionary leadership/ Reforming SOEs
4.3 Education and Human Resource Development
The Cultural Revolution broadened rural education/
Family planning and demographic change
4.4 Savings and Investment, Leading to Capital Accumulation
Chinese saving rate puzzle/ A global magnet for FDI
Chapter
5. India, Smart Elephant Awakens
5.1 Free and Open Market Economy
The crisis in 1991 released shackle of License Raj/ Overcoming historical
legacies
5.2 Accountable Government and Effective Policies
Why the economic planning failed in India?/ Market decided a different path
5.3 Education and Human Resource Development
Deep but narrow education/ Bengaluru, hub of IT and software industry
5.4 Savings and Investment, Leading to Capital Accumulation
Unfinished mission, land reform and green revolution/ Affinity for gold
Chapter
6. Asia's ongoing journey for prosperity
6.1 Lessons from the Journey up to Here
Chairs keep balance with four legs/ There is no such thing as one size fits
all
6.2 Facing Changing Weather and Height
End of catch-up and deceleration/ Fragmented global economy/
From demographic bonus to onus
6.3 Way Forward in the Future
Sustainable development/ Market plays a bigger role/
Shared prosperity among and within countries
Afterword
In-chang SONG obtained his PhD in Economics from the University of York, UK. An economist and policymaker, he has more than three decades of experience in international economic cooperation, financial policy, and development strategy in the Korean Ministry of Finance and MDBs. He was Deputy Minister and G20 Sherpa for the Republic of Korea.
