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East Asian Economies > W1 - Introduction and history > Flashcards

W1 - Introduction and history Flashcards

1
Q

What contributed to Western early economic development?

A
  • Imperialism
  • Discovery of the new world
  • Industrial revolution
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2
Q

What does NIE stand for?

A

Newly industrialised Economies

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3
Q

Who did the world bank class as the NIEs?

A

South Korea, Singapore, Taiwan and Hong Kong

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4
Q

When did the NIEs start developing?

A

Their rapid economic growth performance occurred since the 1960s

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5
Q

What did NIEs achieve for the world?

A

They changed the patterns of world trade and lifted millions out of absolute poverty

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6
Q

What halted the growth miracle?

A

The Asian financial Crisis

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7
Q

When was the Asian Financial Crisis?

A

1997-98

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8
Q

When did China join the NIE group?

A

1978

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9
Q

What is an example of trade interdependence in the region?

A

Regional Comprehensive Economic Partnership

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10
Q

Why did India pull out of the RCEP free trade agreement?

A

India pulled out because the removal of import tariffs would be too soon who were not ready yet to compete with other Asian countries such as Japan and S.Korea

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11
Q

What is another proposed trade agreement in the region?

A

The CP TPP (Comprehensive and Progressive Trans Pacific Partnership)

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12
Q

Who make up the ASEAN5?

A

Indonesia, Malaysia, the Philippines, Singapore, and Thailand

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13
Q

Name 3 notable national leaders for post-war growth in SE Asia?

A
  • Park Chung-hee - S.Korea
  • Lee Kuan Yew - Singapore
  • Deng Xiaoping - China
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14
Q

What did these leaders have in common?

A

They were all in power for a long time with a Quasi Democratic political system.

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15
Q

What was common amongst the economic systems of the 4 Asian Tigers?

A

More capitalistic states with state intervention. There is more state intervention that in the West however they should still be classified as more capitalistic economies

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16
Q

What distinguishes the four asian tigers?

A
  • Rapid (strong) growth
    • Sustained growth
    • High income economies (not an easy achievement)
      Didn’t hit the middle income trap
17
Q

What does modernisation theory predict?

A

Predicts that poor countries follow the same processes of developed economies and postulates that economic development precedes democracy

18
Q

What is the flying geese hypothesis?

A
  • Countries/ Economies climb a ladder in terms of industrial output complexity
  • Called flying geese because birds at the back catch up to the birds at the front
  • The bird at the front is Japan here
  • Dynamic comparative advantage is behind this hypothesis
19
Q

What is dynamic comparative advantage?

A

Dynamic comparative advantage is that you have a lower opportunity cost of producing a good or service. Dynamic means that its changing. The goods that you have a lower opportunity cost of producing changes over time.

20
Q

Do experiences in South East Asia reflect the findings of modernisation theory?

A

No, they debunk it. Because countries in Asia showed there was no one size fits all model. The Asian tigers show this as they all developed differently. Economic development is not a precondition for democracy as shown by all the Asian countries listed other than Korea.

21
Q

What are Rostow’s stages of economic growth?

A
  1. Traditional society
  2. Pre-conditions for take-off
  3. Take off
  4. Drive to maturity
  5. Age of high mass consumption
22
Q

Do experiences in South East Asia reflect the findings of Rostow’s growth theory?

A

No, not all countries start with the same endowment geographically or politically and hence do not all follow the same process. Some may skip stages as they are not easily identifiable

23
Q

What can the flying geese hypothesis be broken down into?

A
  • Intra-industry aspect
  • Inter-industry aspect
  • International aspect
24
Q

What is the intra-industry aspect?

A

Product development within a particular developin g country with a single industry growing over the processes

25
Q

What is the inter-industry aspect?

A

Sequential appearance and development of industries in a particular developing country with industries being diversified and upgraded from consumer goods to capital goods and/or from simple to more sophisticated products

26
Q

What is the international aspect?

A

Subsequent relocation process of industries from advanced to developing countries during the latter’s catching up process

27
Q

What explains the asian growth miracle then?

A

East Asia developed in a unique way although there are substantial country specific variations

28
Q

What is the Asian model?

A
  • Market based approach but not quite free-market
  • Gov’t closely involved and directed resourcs. Often picking winners and prioritise resource allocation (Korea) (state-led capitalism)
  • Diverse groups interacted: leaders technocrats, entrepreneurs and foreign firms
  • Benefitted from the global trade system with export led growth
29
Q

What did Asian countries benefit from?

A
  • Bretton-woods system (stability in Exchange rates)
  • GATT (Cheap exports)
  • US hegemony and security assurances (focus shift)
30
Q

What is the GATT and it’s impact?

A

GATT. General agreement on tariffs and trade set general rules of the game. Asian countries benefited from this as they could export their goods cheaply

31
Q

Did Asian culture help?

A

Confucian culture was rather suppressive of entrepreneurships and social changes. Neo-confucian political philosophy was more of an impediment to development in China and Korea. To develop you need productivity and creativity to grow which Confucian culture was not very conducive for

32
Q

What is the rule of 70?

A

If a variable grows continuously at g% a year, then it will take approximately 70/g years for the variable to double

33
Q

What was the Neo-Marxist or dependency (centre-periphery theory) and did it apply to Asian development experiences?

A

Means you do not trade with the developed economies because they will simply exploit the smaller ones. This is not true again. Centre-periphery relations are invalidated by Asian experiences.

34
Q

Did they adopt American style free markets?

A

No, this was never adopted in Asia. If anything countries in Asia such as Japan and Korea followed the German model instead rather than the US.

35
Q

Did they follow textbook or neo-iberal economic principles?

A

Very dominant in the 1980s but never adopted successfully in Asia. When they were adopted, it was followed by the Asian financial crisis

36
Q

Did they use a Soviet style central planning economy?

A

Tried but failed, China was unable to adopt this same in Vietnam

37
Q

Did they use a closed economy model?

A

Indian economy opened in 1995 to FDI, it is now far stronger.

38
Q

What is important about the geography of the four asian tigers?

A

All bordering the ocean which makes it easier to export
Singapore is located on one of the busiest shipping lanes in the world

East Asian Economies (13 decks)

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