Studwell’s thesis is bold, his arguments persuasive, and his style pugnacious. It adds up to a highly readable and important book that should make people. Bill Gates reviews “How Asia Works” by Joe Studwell. How Asia Works. Success and Failure in the World’s Most Dynamic Region. Joe Studwell. A provocative look at what has worked – and what hasn’t – in East.
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Studwell does not advocate this as a universal panacea – he points out the problems that South Korea had, and that they were lucky to get away with it – and that the system gets a country to a certain level of development, after which it is necessary to modernise – which may not always work – as in Japan. The contribution of Joe Studwell is that he argues in favour of a very specific type of “infant industry” policies, that combines large scale public support for export oriented industries with a consistent “culling” of any company who was not up to the job.
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In that sense his story is backward looking – useful as studell framework for thinking about how SEA, perhaps, which is relatively behind the curve, could develop, but less useful for thinking about how North Asia will look in years. I still don’t know. This is the foundation that builds a capital base.
But in our training we studwelll given only the neoclassical growth model—most programs no longer even bother to teach economic history. Have you ever wondered how China came out of the blue stdwell became a huge player in the world economy? While some of the measures undertaken by the likes of South Korea such as massive financial repression and forcing export led growth might not be entirely applicable in today’s scenario, the basic lessons remain unchanged.
How Asia Works: Success and Failure in the World’s Most Dynamic Region
Land reform does not come easily: I have recommended this books to few awia my PG students, especially those with Agricultural backgrounds. This has implications for the third stage of development, the jie of a domestic finance industry. As this strategy is not directed in the short term to a lot of consumers, it’s usually difficult to apply without a strong government or coalition. Another reason to prefer investment in manufacturing over services is that once an independent financial sector gets going, money tends to flow to lucrative but non-productive sectors like high-end real estate speculation rather than, say, new industrial infrastructure.
The author cites Philippines which had a good education system, bequea A very interesting book on how North Asia and South East Asia diverged since the past 50 years or so. The book investigated and expounds the successful and not so successful economies of Eastern Asia, comparing why certain ones Taiwan, S Korea, Japan succeeded, while others Philippines, Indonesia, Thailand never reached the same level of success.
Finance – A tool to accelerate industrialization, studdwell a end in itself. This book absolutely nailed it when it came to telling me what I wanted to know.
A lot of it is tough to get through, there is a lot of statistics and so many different players in the game that it is sometimes d Have you ever wondered how China came out of the blue and became a huge player in the world economy?
Even in the US, development projects like railroad construction after the Civil War were notoriously corrupt, and all of the same risks of cronyism, rent-seeking, and regulatory capture are present in Asia. China is putting off the creation of an independent legal system and more open, representative government until well after they are warranted.
It is more or less generally accepted now that “import substitution” is generally a very bad idea as a road to economic development. The simplicity and bluntness of this mechanism makes it highly effective. Once land ztudwell has succeeded, industrialization can proceed. A lively mix of scholarship, reporting and polemic. Manufacturing – Focus on exports, and being competitive overseas.
The remainder of the book is split amongst the other seven nations or six plus whatever you want to call Taiwandivided into three different stages of development: Jul 02, Jingwei Shi rated it really liked it Shelves: Although not a policy prescription in the strictest and narrowest interpretations of the t “How Asia Works The most important thing for countries to do, as shown by the examples of Japan and South Korea, are to focus on exporting manufactured goods which studwfll be traded as opposed to dtudwell service industries which can’t, and then promote export discipline by not allowing domestic ssia to get lazy.
Example, in the automative industry, several firms existed in South Korea, but one by one all of them either perished or absorbed by Hyundai-Kia, the fifth biggest automaker nowadays. See 1 question about How Asia Works…. I worry that, without a decent alternative, we will be tempted to fill in the gap with an easy generalization, like a writer resorting to a cliche.
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Anyone who can ‘read’ an economic model knows that the ‘comparative advantage’ argument in favour of free trade is based on a static analysis and that it can be optimal for a country to sacrifice short term gains of free trade to obtain larger gains in the future. But this does not potray the book being about only Agricultural economics, but rather how initial support of Government not always democratic! This policy should also be supported with subsidized fertilizer, education, etc.