East Asian Model Development

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East Asian Model Development | 1

Introduction

Economic growth in different patterns of income distribution and thedifference is significant in many countries around the world is a phenomenon that

is not too easy to be explained by economists. Until now many studies in the

literature that explore issues of economic growth experienced by countries in the

world. In general, there are three issues most frequently discussed and related to

each other in a matter of growth, there are world growth, country growth, and

inequality of income level.

Along with the increasing complexity of economic growth that happens,

economists were already trying to develop a variety of growth models that attempt

to explain why there are some countries rich and others poor. However, until nowthere is no model of economic growth that is powerful in explaining the factors

that drive economic growth itself without making simplifying assumptions

through less realistic in the real world.

In the last half-century state in eastern Asia seems to be an embryo that

has grown into a global giant and even Asia. This is evidenced by the rapid

growth in the economic sector, human resources and income per capita. After the

second world war-2, East Asia country began to clean with a centralized

bureaucratic management (centralization) like Japan, China, and South Korea.

Superiority is achieved by consistency in economic policy-making and resource

development of government officers and human resource development. With a

centralized system of government which gives freedom to the government for not

a lot being in the social pressure to build a prosperous country. However, the

strengthening of the functions supported by the ability of governments in

managing the public administrators, it is becoming a very important point in the

effort to build an advanced country to do when the delegation of authority for all

kinds of public interests to the government, the government should be able

accommodate to implement what has become obligations as officers of the State

and will be eligible in accordance with what he did (rewards). Growth in EastAsia country then became a research by many third world countries to apply.

Nevertheless, there are some models of the conflict that will be discuses in this

paper. East Asia and how the country can be independent and confident in their

countries will change over local culture and local principle.

Prior to any limitations in the writing of this paper is not to be too broad

and coordinated with what you want covered. First, to answer the question what

the actual model of development to the attention of the State east Asia as well as

discussion and criticism of the model and the second is a comparative model of

development on people's republic of china is a model of the state east Asia..


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1. Rebuild the country after the war and crisis.

Build a country after the war and a state of crisis that hit the country EastAsia is not an easy job, social capital needed to rebuild what was lost and running

as it should. In addition to social capital needed to force the government to

organize the process of governance to the community.

For example, when Japan defeated devastated in World War II after the

city of Nagasaki and Hiroshima was bombed by the American soldiers (see

picture I). After they surrendered to the Allies, the Emperor Hirohito (1901-1989)

to collect all the Generals who are still alive and asked them "how many teachers

have left? All General asked the emperor as he faced embarrassment over his

defeat the allies: "why did the emperor asked the number of teachers who left, the

remaining troops are still not sufficient to maintain the safety of the emperor to

the death? And we all feel ashamed as a general of Emperor say that ". Emperor

replied, "We have fallen, because we do not learn. We are strong in weapons and

war strategy. Nevertheless, we do not know how to print a terrible bomb. If we all

cannot learn, how we will pursue them? Then collect the remaining number of

teachers in all parts of this kingdom, for now we will rest them, not the troop

strength.

Picture I : Hiroshima and Nagasaki after Atomic bomb 1945

Nagasaki 1945 - Before and after


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Source: U.S. National Archives: RG 77-MDH (according to William Burr,

The Atomic Bomb and the End of World War II, and National

Security Archive Electronic Briefing Book No. 162).

Pictured above is evidence of that American anger is realized on the date

of August 6, 1945 and 9 August 1945. On the both date, in order, the U.S.

attacked Hiroshima and Nagasaki with atomic bombs. Damage caused by the

bombing was much unexpected. Japan immediately paralyzed instantaneously,

surrendered unconditionally to the Allies on August 14, 1945. This atom bomb

had been killing as 140,000 people in Hiroshima and 80,000 in Nagasaki by the

end of 1945. Since then, thousands have died due to injuries or illness related to

radiation released by the bomb.

(Source:http://en.wikipedia.org/wiki/Atomic_bombings_of_Hiroshima_an

d_Nagasaki#Hiroshima_during_World_War_II).

A history of Korea, to split into two parts, that is South Korea and North

Korea is a dark history of two countries in East Asia. Until now, the two countries

that had civil war from 1950 - 1953 in the Korean Peninsula (See picture II). Civil

war began on Jun 25, 1950, when North Korea attacked South Korea. This battle

is developing with involvement of the United States and the People's Republic of

China.

This conflict is finished after the cease-fire was reached on July 27, 1953.

As can be seen the figure below:

Picture II: Civil war in Korea
http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB162/http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB162/http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB162/


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"Red Korean Forces Invade South." This headline signified the beginning

of the Korean War, which began when North Korea, backed by China, invaded

South Korea. Another Korean War newspaper article said that this was the

beginning of a civil war between the two territories as North Korea sent 60,000

troops into the south. The Korean War newspaper also discussed the fact that

South Korea planned to request aid from the U.S., specifically from General

MacArthur, who was the occupational commander for Japan from the end of

World War II (Source: The San Antonio Sunday Light's June 25, 1950 Korean

War newspaper edition)

Korea was divided into two countries: North Korea and South Korea. The

division of Korea into two states is a symbol of the legacy of ideological rivalryduring the Cold War. At the end of the 1970s, North Korea and South Korea

began to appear among the international community due to its success in

economic growth and eliminate poverty in a short amount of time. Besides

economic, Korea became the center of international attention because of conflict

and rivalry between North Korea and South Korea are more sharply, by

strengthening its defense system respectively. In 1988, South Korea successfully

hosted the Olympic Games successfully, North Korea also managed to develop a

wide range of modern weapons the program "plutonium based nuclear" and

"highly-enriched-uranium (HEU) nuclear program". North Korea producing

enough plutonium for making nuclear weapons. As stated that North Korea is a

unique country, although most of the population lives in poverty, the government

can still spend millions of dollars for weapons purposes (Yang Seung-Yoon and

Mohtar Mas'oed, 2003: v).

The success of the bamboo curtain cannot be separated from the long

history of Chinese culture thousands of years old. History records the progress of

China rise and fall in the international arena. China once had a highly developed

culture of civilization in the Huang Ho and the Yang Tze, as well as progress in

the Chin Dynasty. China is worst ever for hundreds of years, until finally bouncedback after the economic reforms by the founding fathernya. To date, the majority

of Chinese people uphold the country's founders. The success of the country with

the world's largest population of the world in the 21st century now upon the

determination and consistency of China's leaders in building Zhung Quo (Central

Civilization). Since the economic reforms in 1978, the poverty rate of China's

population fell from 53% in 1981 to 8% in 2001. In the year 2008, China has

entered the age of 30 years since the 1978 economic reforms, which "threaten" the

existence of Western hegemony in the world. China's economic development after

the internal government crisis becomes an important learning how the existence of

the State is required in all sectors of development for the betterment of society and


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the State in the international community. China's economic growth has started

since a long time, as described by Mark Elvin in his book The Pattern of the

Chinese Past and Shiba Yoshinobu, Sodai shogyoshik enkyui, abridged trans. by

Mark Elvin as Commerce and Society in Sung China In China, an initial

commercial revolution began during the tenth century as improvements in reverie

transport combined with improvements in agriculture to support the expansion of

merchant Organizations and long-distance trade (Mark Elvin: 1973) . The

organization of markets, transportation networks, urbanization, and merchant

practices have all been reconstructed from the primary sources available for the

period. (Mark Elvin: 1968). Chinese civilization in the country's economy and

growth cannot doubt a pilot now and is a concern how they prepare the master

plan development persisting despite the communist ideology and the influence ofglobal capitalism.

Besides that, according to mark selden in the Journal of Asia pacific. He

said the historical and contemporary factors facilitating rapid economic

development, industrialization, substantial growth in per capita income and the

formation of a vibrant multi-directional East Asian regional economy, the

following seem particularly important:

The legacy of Asian economic and political strengths examined earlier in

the epoch of Chinese preeminence, protracted peace, and the regional

tributary-trade order of the 18th century, legacies that would become clearwith the resurgence of Chinese strength at the center of an emergent East

Asia.

The role of the Chinese, Japanese and Korean Diasporas in re-linking

Asian and Western economies through trade, technology and investment

networks that extend across the region and link East Asia globally.

Early postwar developmental and social change strategies throughout East

Asia predicated on state-led accumulation and investment, social change

strategies that pivoted on land reform, and measures that blocked takeover

by international capital while creating firm foundations for the domesticeconomy.

The reuniting of the region bridging the divide that we have traced to the

era of colonialism and regional disintegration and which continued in the

era of US-Soviet conflict that defined global geopolitics and political

economy in the immediate postwar decades.

If intra-Asian factors are of primary importance, the resurgence of East

Asia as a region has been shaped by global factors, notably the role of the United

States in the Asia Pacific. During the immediate postwar decades the US played a

key role not only in shaping such global institutions as the World Bank, IMF and

United Nations, but also in structuring a bifurcated Asia Pacific, in plunging the


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region into protracted wars, and in assuring the primacy of bilateral over

multilateral relations. Since 1970, it has facilitated the resurgence not only of the

national economies of East Asia but also made it easier to transcend at least some

of the divisions inherent in earlier East-West conflicts (Selden:2009)

2.The East Asian development model

The most successful developing countries over the last half century have

come from East Asia. In the early nineties, the World Bank published a very

influential book attempting to explain this East Asian Miracle (World Bank,

1993). As the Asian Financial Crisis spread to this region in 1997, some structural

and institutional weaknesses became apparent. Yet the resiliency, which East Asia

revealed in fighting off and ultimately overcoming most of the negative

consequences of the crisis, did not make the miracle vanish.It is important to emphasize that in most countries of East Asia as a

surprise to the world, is also not separated from their intervention in the economic

process is considered as invalid. This is especially true when rapid economic

growth seems to validate the strategy of "developers" and developer of the overall

status meant that the policy needed to 'catch' that is relatively easy to formulate.

As a result, many East Asian countries could replicate the experience of the

'Developing' the world, facilitating adaptation to industrial development through

technology and integrating national economies into the wider international system

on favorable terms through the judicious use of trade and industrial policy. The

current situation facing political elites of East Asia is a good deal more complex

and the same role for states is less clear. In other hand East Asia success to

improve their situation from poor countries being developing countries, based on

stark article The East Asian development state as a reference model for transition

economies In Central Asia an analysis of institutional arrangements and

exogenous constraints he said, There are extremely few examples of non-Western

economies that were able to achieve sustainable economic growth over a long

period of time. Looking for countries beyond Western Europe and North America

that could serve as reference models for a successful industrialization, the eye

turns almost invariably to East Asia, where most of the remarkable economic

success stories have taken place: Japans rapid growth in the last decades of the

19th century and the years after World War II, the economic miracle of the Asian

Tigers in the second half of the 20th

century and Chinas economic success

today.(2010:191)

A part of that, many scientists make analyze to rethinking about East

Asian development and how they going to be giant in the world in economic

perspective and cultural terminology have strongly relationship. The world's

attention has been focused on rapid economic growth and sustainability of China


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after the previous surge by Japan and Korea. However, development in East Asia

cannot be underestimated but the accumulation of a strong culture and the "work

ethic. The East Asian economic success has caught the attention of both policy

makers and economists and lead to a vast number of scientific publications. Many

of the earlier contributions explained the fast economic growth as the result of

market-based policies that approximated laissez-faire (Akyz et al., 1998: 5;

Haggard, 2004: 54).

However, that is big question how they develop their country and

improving to fast? In this case, we have to find out what is the development model

of East Asian. Furthermore, a rapid modernization and industrialization was

successfully pursued with the aim of catching-up economically with the Western

powers (Olson, 1982: 150-192). After the devastating defeat in the Second World

War, the economy of the after-war period showed another impressive growthperformance that became known as the Japanese miracle. In the second half of the

20th century, Japan had surpassed most western countries economically and

became the worlds second largest economy behind the United States. East Asia

being Miracle of Asia in 20th century, and giving influence to Asian and African

continent to changes and getting out from western approach to development state.

However, what is development state? How this terminology can be imagine Japan,

Korea, china and Taiwan being industrial country and control their economic in

last three decades successfully. Besides that, we can see the Human Development

Index 2011 in East Asia, the fact of East Asia success:

Pict III: Human Development Index 2011 in East Asia

Source: United Nation Development Programme (UNDP),Human Development Index 2011.


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3. Developmental State

The successful implementation of the concept of the Developmental Statein East Asia countries especially Japan, South Korea, and Taiwan are closely

associated with authoritarian political system adopted by the majority of these

countries. Statement appears that the only successful application of the

Developmental State in countries whose governments are authoritarian. Related of

that, the role of the state is one of the key issues of economic research. While

economists usually agree on the regulatory functions of the statee.g. its

responsibility for establishing and enforcing the rule of lawit has been a much

more controversial question whether the state should take an active role in

promoting economic growth and development (Chang, 1999: 182-183)

Developmental state is a paradigm that affects the direction and pace of

economic development by directly intervene in the development process, which

varies inversely with the ways of thinking that relies on market forces, in

allocating economic resources. This paradigm is to build substantive social and

economic objectives that guide the process of development and social

mobilization. Characteristics of this paradigm are a powerful country, the

dominant role of government, a technocratic rationality in economic policy-

making, autonomous and competent bureaucracy, and regardless of political

influence. Similarly, developmental state is a concept popularized by Chalmers

Johnson to see a model of development in the countries of East Asia are quitesuccessful as in Japan, Taiwan, South Korea. This concept is an answer to the

dependency of the failure of the modernist view. In detail in Johnson's

formulation (Pei-Shan Lee, 2002), that is a developmental state is one of the

following:

1. Prioritize economic growth and production (the opposite of consumptionand distribution) as the fundamental purpose of state activity.

2. Economic bureaucracy to recruit talented, cohesive and disciplined thebasis of merit.

3. Concentrate the bureaucratic talents into a central agency (such as MITI

in Japan) which is responsible for the transformation of industrial tasks.4. Institutionalize relations with the elite bureaucracy in order to exchange

business information and encourage cooperation in important decisions

based on effective policy-making.

5. Policy makers to protect networks from commercial pressures anddemands and other.

6. Implementing development policies with a combination of networkgovernment with the world industrial and public control over the source

of resources power, such as finance.

These roles are actually intended to prevent market failure that arises.

However, many developing countries either in implementing it. What happens is


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that the dominance of the government is too powerful and affecting the market

mechanism.

The concept of developmental state that adopted by Japan, Taiwan, SouthKorea and Singapore it is a system that was born to answer the modernist failure

to provide the state's role in regulating the economy effectively. The combination

is very effective where the economics are not allowed to use the principle of

Laissez Faire and the state has a very large role for economic development. The

mention of the country with an authoritarian political system is often regarded as a

condition of successful development is due to the authoritarian state will be easier

to organize people so that the economy is more stable political conditions so that

the investment would be easier to enter. As happened in Indonesia during the New

Order government under Suharto's regime is no less authoritarian and evenrepressive, but in fact tends to not produce a steady state economy. This is caused

by a foundation that is built is fragile because Indonesia relied economy to

foreigners, namely the IMF and World Bank rather than on aspects such as strong

domestic small industry and agriculture, the article of Indonesia's economy

collapsed when hit by a hurricane of the 1997 financial crisis.

Although, economic policy, including industrial policy, in the East Asian

developmental state was primarily geared toward maximizing national

productivity. In this respect, rapid economic growth constituted the

development in the developmental state model. The distribute, The Adaptive

Developmental State utile consequences of economic growth were less important

to the developmental state, provided that social inequality was never too severe

and that the trickle-down effects of aggregate growth continued to be felt. This

rather narrow conception of developmentlegitimated by the feelings of

economic nationalism vested in East Asias catch-up model of development

therefore precluded more concerted efforts in redistributive social policy. The East

Asian developmental states were social welfare laggards. The few social programs

that existed were for bolstering national economic productivity, not

socioeconomic redistribution per se. Ian Holliday appropriately termed the East

Asian welfare regimes of the postwar period as productivity in their economicorientation. Limited social insurance, health care, and housing were reserved for

those who were working and thus economically productive. Citizens, who were

less well off, particularly those who were unemployed, were excluded from these

limited social programs. As often noted, the East Asian developmental states

invested most of theirsocial capital into the provision of accessible education,

which was justified as a means for human capital development and thus defined as

an economic investment rather than as a social policy.

Finally, whether the country adopted democratic or authoritarian, the main

thing in the success of the developmental state is the capacity of the


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state (state capacity), the ability to formulate and implement development

policies that create a strong economic system and to create economic

independence in all aspects.

4. Does China follow the role of state?.

The last section, we will discuss and make comparative argument among

china and Japan especially in context of model of development. In the history of

world war II, Japan was attacked china, and they make colonialism in china,

basically Japan put the ethics and norm into economic china development model

but on contrary the economic system and development planning of china adopted

by another system, there are American and Maoist system by communism model

principle from uni soviet long time ago. In addition, China shows two differentsets of characteristics in development, the polemical oppositions in the debates on

the East Asian development model may also be repeated in the discussion about

the factors of China's rapid economic growth. On one hand, China's rapid

economic growth may be ascribed to the market-oriented structure of the Chinese

economy as emphasized by neo-classical economists (Balassa, 1988; World Bank,

1993). However, Characteristics of Chinese development display similarities as

well as differences with "the East Asian development model." Like other

"developmental states" in East Asia, the Chinese government also has guided the

economy by controlling the financial system and channeling financial resources

into specific targets. China is also incorporated into a triangular structure of

intimation trade and division of labor among the USA, Japan and East Asia as a

bottom to middle level participant. Planned economy has undertaken the role of

industrial policy to promote heavy industry (Seung-Wook Baek:493).

In another perception is two general issues are worth highlighting at the

outset. First, like Japan, the Peoples Republic of Chinas (PRC) developmental

project has been profoundly influenced by the wider geopolitical context in which

it was embedded. In Chinas case, of course, this hasuntil relatively recently, at

leastbeen a major disadvantage: China found itself politically and economically

marginalized in an increasingly integrated international political-economydominated by the United States.56 In such circumstances, it is hardly surprising

that Chinas leaders initially leaned toward the Soviet Union, its notional

ideological ally. The second point which flows from this is that, although China is

political and economic regime is very different from Japans, the PRC

government has from its inception also been a developmental state, albeit one that

was initially socialist and Maoist.

In conclusion, the Chinese model of development is quite similarly to East

Asia development model such as market based, the role of state, policy makers

based on Street Level decision but they have another principle how to build the


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strong foundation of economic and social life in China. Furthermore we can see

the result of china model development in Gross Domestic Product (GDP) see

picture IV.

Pict IV: China Nominal Gross Domestic Product (GDP) during 1952-2005

Another comparison of statistical data member of East Asian coun between other

countries, These tables show Chinas overall GDP in both nominal and PPP terms

compared to other major economies :

Source: http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal) by : IMF,WorlBank and CIA World Fact book
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)


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East Asian Model Development