The Asian Development Model: What is it and what is its future - Essay Example

This has created a misconception that they all follow the same model. But that is not the case, each one of these countries has its own industrialization experience. “The Japanese case of government-directed industrialization; South Korea and Taiwan, following closely the footsteps of Japan, with state directed production and exports for the world market; Two city-states of Singapore and Hong Kong (now reverted back to China) with completely open “free ports” to the outside world; the second-tier NICs of Malaysia, Thailand, and Indonesia with FDI-led exports and growth; China, since 1978 and the leadership of Deng Xiao-ping, with its open-door policy for FDI and substantial public expenditures on infrastructure development.

” (Jong H. Park) Other common elements in the economies of East Asian countries are: These countries (economies) have all pursued export oriented development strategies; They have been successful in maintaining high rates of saving and investment; Emphasis has been placed on promoting universal education and making enormous investments in human capital so as to better absorb and adapt the most advanced technology; For almost all of the East Asian economies, with the exception of Hong Kong, industrial policies were an important part of their growth strategies.

The government in all these countries plays a very important role and does not hesitate in intervening in any matter. (Jong H. Park) Several countries took measures for stabilization and structural adjustment, from the examples of these countries we can see that these measures affected the balance of payments, employment, inflation, investment and growth and the poverty level. (C.H. Hanumantha Rao, pg. 20) Those countries which had substantial achievements in the pre-reform period could bear the economic shocks and the growth for them was sustainable for a longer