The Political Economy of the New Asian Industrialism Summary

The Political Economy of New Asian Industrialism

  • Edited by Frederic C. Deyo, Cornell University Press (1987)

Key Contributors

  • Richard E. Barrett, Tun-jen Cheng, Soomi Chin, Bruce Cumings, Frederic C. Deyo, Peter Evans, Stephan Haggard, Chalmers Johnson, Hagen Koo

Structural Overview of Contents

  • Preface and Introduction: Overview of export-oriented industrializing states in the capitalist world system.

  • Chapters:

    • Export-oriented industrializing states: Similarities and differences.

    • Origins and development of the Northeast Asian political economy.

    • Role of state and foreign capital in East Asian NICs.

    • Political institutions and economic performance in Japan, South Korea, and Taiwan.

    • Interplay of state, social class, and world system.

    • Modes of political exclusion in East Asian development.

    • Economic lessons for Latin Americanists.

    • Institutional models of East Asian economic development.

Economic Growth Metrics

  • South Korea (1950): per capita income of $146.

  • Taiwan (1950): per capita income of $224.

  • By 1980, South Korea: $1,553; Taiwan: $2,720.

  • Japan's per capita income (1980): $8,870, leading East Asian growth.

Governance and Economic Performance

  • Theories on state influence in economies:

    • Japan's combination of soft authoritarianism and capitalism fosters economic growth.

    • Post-1947 Japan moved to a democratic structure while retaining some autocratic features.

  • Critique of theories attributing Japanese economic success solely to culture.

Role of Government

  • Strong governmental role does not equate to corruption or inefficiency in capitalist development.

  • Key factors include political stability, elite education, and bureaucratic independence.

    • Developmental elites work toward growth goals without prioritizing elite privileges.

Labor Relations Framework

  • Variation in labor relations across Japan, Korea, and Taiwan.

    • Japan: enterprise unionism, low strike activity.

    • Korea: limited unionization, strict regulations against striking.

    • Taiwan: similar to Korea with strict control over labor unions.

Financial Control and Investment

  • Reliance on bank-based financing over capital markets.

  • Quality control through governmental credit allocation mechanisms.

Autonomy of Economic Bureaucracy

  • Distinction between bureaucratic independence in Japan vs. military influence in Korea.

  • Government strategies must remain insulated from populist political pressures.

Conclusion

  • The capitalist developmental state model suggests: adaptability outperforms rigid systems.

  • Future prospects hinge not just on export-oriented strategies but also on internal political-economic dynamics.