THE ROLE OF CONFUCIAN VALUES IN EAST ASIAN DEVELOPMENT: BEFORE AND AFTER THE FINANCIAL CRISIS
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Asian Values provided a convincing cultural explanation for high economic growth in East Asia up until the recent economic crisis, without many of the social problems that are normally associated with rapid development, However, the Asian economic crisis has prompted a re-examination of Asian values. This paper argues that the positive aspects of Confucian values outweigh its minuses and that it is up to the East Asian economies to take steps to maximize its positive aspects, The paper also argues that its minuses and that it is up to the East Asian economies to take steps to maximize its positive aspects, The paper also argues that its Weakness cannot be entirely blamed for the Asian economic crisis and that given the overwhelming evidence of East Asia’ s remarkable economic performance over a sustained period, the effects of Confucianism on economic development should not be overlookedKeywords:
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Abstract We now have a fairly good understanding of the economic causes of the 1977 Asian financial crisis. There is as yet, however, little understanding of the politics behind the crisis. Not only did various political systems in Asia play a significant role in fomenting the crisis, they have also demonstrated remarkable capacities in dealing with its aftermath. Nowhere is this more evident than in the far‐reaching economic reforms implemented by the Kim Dae‐Jung administration in South Korea. The key to Korea's success in weathering the crisis lay in the decisive leadership of Kim Dae‐Jung and in the “developmental state” structures and institutions he inherited—both of which exemplify the autonomy of a putatively democratic state from societal, especially elite, pressures.
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Abstract Capitalist diversity is doomed in a global economy and the coming century will see ever more countries adapting their institutions to resemble more closely the Anglo-American model. Or so many believe. But to what extent have the ideological and institutional fundamentals of East Asian developmental states been eroded and in what measure is change being driven by an external-economic logic? Five propositions are developed in the light of the catch-up process, the sources and outcomes of financial liberalization, the Asian financial crisis, and Japan's bank crisis. The article concludes that the East Asian experience offers little comfort to those who expect that liberalization will lead to 'normalization'. Keywords: Convergence Developmental States East Asia Financial Liberalization Transformative Capacity
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Although globalisation is by no means a recent phenomenon,1 its new wave has raised a number of questions—both about its supposed benefits and its alleged adverse consequences. Rather than exploring the wider ramifications of globalisation, this paper will confine its purview to the question of technology development and dissemination in the context of globalisation as it has affected the development of Asian economies in the last few decades. In particular, the paper will focus on the somewhat dazzling performance of the East Asian economies in the last three decades and their equally sharp and unforeseen downturn in the past two years, which has raised serious doubts first about the replicability and later about the robustness of the East Asian development experience. Although the palpable cause of the current East Asian crisis has generally been situated in the increasing complexity and fragility of the global financial system, many prescient international economists had attributed it to the weakness of the technological underpinnings of East Asian growth [Krugman (1994)]. The East Asian crisis has also raised a lively controversy concerning the impact and desirability of selective micro-economic interventions by national governments, which have often been oversimplified under the rubric of ‘crony capitalism’. While the debate on which causes contributed most to the sudden down-turn in the growth of the East Asian economies remains inconclusive, there seems considerable validity in the conjecture that their future growth prospects will depend on their ability not only to master current technologies, but also to significantly further their technological prowess through R and D and scientific achievement. Although the immediate trigger of the present crisis in East Asia may have been the turmoil in their financial markets, the underlying problems in the real economy, which have so far received insufficient attention, stem largely from their incommensurate technological development.
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The financial crisis that began in mid-1997 came as complete surprise to the global community. Its magnitude and rapid spread reverberated throughout the world. Still today, no clear agreement exists on what truly caused this economic tragedy. From foreign exchange rate pegging to the US dollar to lack of prudential supervision have been iterated as one the most rationale explanations for the Asian financial crisis. Starting with Thailand and rapidly infecting other nations of the Asia-Pacific rim the crisis strengthen while taking away investor confidence and thus taking potential investments. With the greater global economic integration, the crisis has been worldwide, which has led to a better understanding the drawbacks of globalisation. This thesis seeks to analyse and synthesize the ideas on future prospects for economic growth in the Asia-Pacific region against the backdrop of its historical development and the financial crisis of the mid-1990s.
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This article uses the current economic crisis in Asia to analyze the impact that economic turmoil—especially economic contagion—in emerging markets can have on the process of social, political, and economic institutionalization and reform in Asia and Latin America. It argues that continued financial instability will result in increased democratization and transparency in Asia, as has happened in Latin America as a result of its struggles to consolidate and reconcile democratization and economic reform from the late 1980s to today. This transformation in Asia will temper the argument that the Asian development model was the path Latin America should have followed. This does not mean, however, that the reform path that the Asian countries choose will be successful or certain. Rather, although many authoritarian tenets of the Asian model will be challenged by calls for political and economic reform, the ultimate degree of liberalization in Asia will be uneven and incomplete, especially if the economic crisis deepens. Conversely, Latin American nations will need to use the Asian crisis as further evidence that the most sustainable form of economic and political reform necessitates a renewed commitment to promoting democracy and liberal institutions.
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The once high-performing East Asian economies were suddenly rocked by the 1997 financial crisis. This raised the question of whether the crisis signals the end of the 'Asian development model' and provides further evidence of the 'globalization of poverty'. This article attempts to answer this question by examining the connection between liberalization (and deregulation) and the pattern of poverty reduction and income inequalities in four East and Southeast Asian economies severly affected by the late 1990s crisis. Based on the findings, it contests the view that globalization means the end of the role of the state. Instead, it is argued that, while some states are playing the role of promoters of the globalization process, others are redefining and resisting globalization. The crisis also has drawn attention to a possible third policy option, which would involve the revitalization of the regulatory role of the state, greater attention to social issues and a more national approach to economic management.
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This article addresses the problem of the interactions between Chinese politics (circumscribed to leaders and institutions), its emerging economy and the start of the Asian crisis. It shows that the regional financial crisis agenda intersected with Beijing domestic political timing from mid-1997 to 1998. In international politics, the Beijing leaders economic policy and attitudes toward Hong Kong may have helped to modify to its best advantage the position of China with regard to its external relations with Asia and the rest of the world. In domestic politics, an important consequence of the regional crisis was to press a reluctant leadership to try to push forward economic and monetary reforms whose delay was often at the heart of the problem in countries in crisis. Moreover, such a situation may have helped to impose a new technocratic leadership dominated by economic officials and a new political style. Finally, this article asserts that the true nature of the Asian crisis is more political than economic. As a consequence, that crisis already has had profound effects on the overall transformation of the Beijing regime.
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Abstract For everyone interested in the nature and causes of economic growth, events in East Asia over the past half century have been of outstanding interest. In the 1980s and 1990s, many economists were attempting to explain the so-called 'East Asian miracle', culminating in the report with that title by the World Bank in 1993. In 1998, the problem has been to explain the collapse of this 'miracle' and to assess the consequences for the world economy. This article first of all briefly discusses the main growth theories and models of economists, starting of course with Adam Smith's Wealth of Nations . The second part then considers the World Bank report on East Asia in the light of this earlier discussion of growth theory. It argues that, though very convincing on several points, the World Bank report paid insufficient attention to the role of technical change in economic growth. Finally, the third part discusses the collapse of the 'miracle' and offers a critique of the IMF prescription for various Asian countries.
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