Against the economic orthodoxy: on the making of the East Asian miracle

Abstract

With an eye on the transition from socialism to capitalism in Central Europe and the decline of industrial economies such as Britain, the article contributes to the debate on the economic development of Japan and the newly industrialized countries of East Asia. It begins with a discussion of the reasons why accounts derived from neoclassical economic theory have dominated explanations of industrialization in the region. By reference to three recent books on the development of South Korea, Taiwan, Hong Kong and Singapore, the article proceeds to mount a critique of the economic orthodoxy, arguing for a central role to be accorded to state influence and direction over the economy. The article ends by suggesting that there are a number of elements in the East Asian model of development that could be creatively appropriated to inform strategies for economic rejuvenation elsewhere in the world.