The East Asian NICs in Comparative Perspective

Abstract

Purely economic analyses of the East Asian newly industrializing countries have overlooked the politics of their growth. Why were these countries able to pursue strategies that combined rapid growth with a relatively equitable distribution of income? The reason lies partly in external conditions, including expanding world trade, and, in the case of Taiwan and Korea, pressure from the United States for policy reform. Domestic social and political conditions were also auspicious, however. Export-led growth was facilitated by weak labor movements and the absence of leftist or populist parties. A relatively brief period of import-substitution policies prevented the development of strong protectionist business interests. Equity was advanced by land reforms in Korea and Taiwan and by the absence of a rural sector in Hong Kong and Singapore. No explanation is complete, however, without reference to the strength of the East Asian states, including their insulation from interest-group pressures and their cohesive, meritocratic bureaucracies. These political institutions facilitated coherent, decisive, yet flexible policy.