The Asian Model: Economic Systems

This set of 20 flashcards covers key concepts and vocabulary related to the Asian economic model, focusing on historical developments, ideological frameworks, and economic structures.

Meiji Restoration

A period in Japan beginning in 1868 where the country rapidly modernized by adopting Western technology and political models.

Four Tigers

Refers to the high-growth economies of Hong Kong, Singapore, South Korea, and Taiwan, noted for their rapid industrialization and economic growth since the 1970s.

Confucianism

A philosophical system that emphasizes loyalty, nationalism, collectivism, and moral behavior.

Charter Oath 1868

A document that outlined the goals of the Meiji government in Japan, emphasizing the importance of public consultation.

Theory of Relative Backwardness

A theory suggesting that countries can achieve rapid industrialization by borrowing technology and adopting practices from more advanced nations.

FDI (Foreign Direct Investment)

Investment made by a company or individual in one country in business interests in another country, often through the establishment of business operations.

Zaibatsu

Large Japanese industrial conglomerates that played a powerful role in the economy, especially before World War II.

Kieretsu

A set of companies with interlocking business relationships and shareholdings in Japan, typically centered around a major bank.

License Raj

A regulatory framework in India that restricted business operations, controlled by government licenses, particularly before the economic reforms of 1991.

Nehru's socialist industrialization

Policies implemented by Jawaharlal Nehru focused on building a mixed economy in India that balanced public and private sectors.

Gandhi's village economy approach

Mahatma Gandhi’s vision for an economy based on agriculture and rural industries rather than industrialization.

Caste system

A hierarchical structure in Indian society that determined an individual's social status and occupation at birth.

Differentiated labor markets

Labor markets that contain various segments, often with multiple structures, benefits, and rules influencing employment conditions.

Principle-agent problem

A situation in business where a party (agent) is expected to act in the best interest of another party (principal) but has the incentive to act in their own interest.

Relational contracting

Contracts that focus on building a relationship between parties rather than strictly legal terms and enforcement.

Income inequality ratio

A measure comparing the income share of the richest 20% to that of the poorest 20% of the population.

Soviet style planning

A centrally planned economic system based on government control of production and distribution, characteristic of former Soviet Union economies.

High savings rates

Economies that maintain a significant portion of income not consumed but saved, being used for future investments.

Income per capita

A measure of the average income earned per person in a given area in a specified year, indicating economic well-being of individuals.

Sectoral investment concentration

The focusing of capital investments within specific sectors of the economy, often seen in economies like Japan.

Social Security contribution rate

The percentage of income that is contributed to the social security system, used for funding pensions and social insurance.