Chapter 12 - East Asia: Flying Geese Against Wind Currents

Abstract

The economies in East Asia have been considered as “show case” economies since the 1970s, because of their use of neoclassical approaches and the adoption of supply-side policies. Beginning with the discussion on the “take and give” behavior in economics, this chapter outlines the few major causes of growth and development based on the political economy framework that are different from other studies. The Asian financial crisis has been the most dramatic incident in Asia, as it served both as a shock and wake up call for the need to restructure. Each of the three East Asian economies of Singapore, South Korea, and Taiwan are faced with new challenges. The three sections provide a discussion on each of these three economies, and suggestions are made to ensure their survival and expansion. The situation in Asia has rapidly been challenged by the rise of China, and economic expansion takes place in conjunction with political uncertainty.