Impact of the developmental state in East Asia
Keywords:
Economic expansion, East Asia, Japan, Korea, ChinaAbstract
The main objective of this article is to explain the economic rise of China, South Korea and Japan, based on developmental state theory. Through a qualitative and descriptive quantitative analysis, it is intended to answer the questions: What has been the impact of the developmental states: Japan, South Korea and China in their respective economic expansions? And what have been the characteristics that these countries have had in common in this process? This swill focus on the following specific aspects for each country and at the same time in common: intervention by the state (protection of certain productive sectors), stimulation of the national production as well as its exportation, and business conglomerates.
It can be said that China’s policy focused on “four modernizations” plus “four principles”: agriculture, industry, science and technology, and defense via the socialist, dictatorship of the proletariat, leadership of the Communist Party of China (CPC) and thinking of Marx-Lenin-Mao Zedong principles. South Korea, concentrated on the implementation of five-year plans focused on different strategic sectors, and on efficient educational training. Japan, its policy was focused on the education of the population; in granting privileges such as the distribution of raw materials, subsidies, rationalized credits, among others, mainly to the coal and steel sector, and the generation of new industries such as automobiles, heavy electrical machinery, computers and petrochemicals, and for this, the government applied measures as a special tax, import quotas, accelerated depreciation, among others (Nishijima 2009, 9).
At the end it is concluded that the impact of the developmental state on the economic success of the three countries analyzed, was of vital importance in the economic expansion of these East Asian countries, proving that, without the active participation of the developmental state, the economic performance of these three nations would not have reached the achieved dimensions.
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