The architects of two Asian economic miracles: Li Kuo-Ting of Taiwan and John Cowperthwaite of Hong Kong

Abstract

This article compares the economic management of two architects of Asian economic miracles, namely, Li Kuo-Ting of Taiwan and John Cowperthwaite of Hong Kong. It reveals that two financial ministers showed drastically different management styles. Li Kuo-Ting of Taiwan took on a ‘directive’ approach while John Cowperthwaite of Hong Kong relied on the free market in resource allocation. However, both economies achieved impressive economic growth during the post-war period. This comparison reveals that there are many paths to economic development. Furthermore, common ground in economic management of two governments is worth mentioning. Both Taiwan and Hong Kong demonstrated themselves as a competent government. Both governments were good learners and took on a pragmatic approach in economic management. Finally, their economic policies, be ‘directive’ or ‘facilitative’, showed respect to private businesses. In both economies, governments relied on private enterprises to promote economic dynamics. Hence, this article concludes that it would be fruitful to investigate different ways in which governments and markets are interrelated and how governments and private businesses can cooperate to achieve economic growth.