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Danny M. Leipziger - The lessons of East Asia: an overview of country experience

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title The Lessons of East Asia An Overview of Country Experience Lessons - photo 1

title:The Lessons of East Asia : An Overview of Country Experience Lessons of East Asia
author:Leipziger, Danny M.; Thomas, Vinod
publisher:World Bank
isbn10 | asin:0821326074
print isbn13:9780821326077
ebook isbn13:9780585264783
language:English
subjectEast Asia--Economic policy, Industrial policy--East Asia.
publication date:1993
lcc:HC460.5.L45 1993eb
ddc:338.95
subject:East Asia--Economic policy, Industrial policy--East Asia.
THE LESSONS OF EAST ASIA
Danny M. Leipziger, Series Editor
An Overview of Country Experience
Danny M. Leipziger and Vinod Thomas
Hong Kong: A Unique Case of Development
Leung Chuen Chau
Indonesia: Development Transformation and Public Policy
Amar Bhattacharya and Mari Pangestu
Korea: A Case of Government-Led Development
Kihwan Kim and Danny M. Leipziger
Malaysia: Growth, Equity, and Structural Transformation
Ismail Muhd Salleh and Saha Dhevan Meyanathan
Singapore: Public Policy and Economic Development
Teck-Wong Soon and C. Suan Tan
Thailand: The Institutional and Political Underpinnings of Growth Scott Christensen, David Dollar, Ammar Siamwalla, and Pakorn Vichyanond
Government Policy and Productivity Growth: Is East Asia an Exception? Vinod Thomas and Yan Wang
Common Foundations of East Asian Success
Peter A. Petri
Page i
Lessons of East Asia
An Overview of Country Experience
Danny M. Leipziger
Vinod Thomas
The lessons of East Asia an overview of country experience - image 2
Page ii
1993 The International Bank for Reconstruction and Development/THE WORLD BANK
1818 H Street, N.W. Washington, D.C. 20433
All rights reserved
Manufactured in the United States of America
First printing October 1993
Second printing November 1995
The findings, interpretations, and conclusions expressed in this study are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent.
Library of Congress Cataloging-in-Publication Data
Leipziger, Danny M.
The lessons of East Asia an overview of country experience / by
Danny M. Leipziger, Vinod Thomas
p. cm. ISBN 0-8213-2607-4
1. East AsiaEconomic policy 2. Industry and stateEast Asia.
I. Thomas, Vinod, 1947- . II. Title.
HC460.5.L45 1993
338.95dc20 93-23262
CIP
Page iii
Foreword
Policymakers everywhere are searching for lessons from East Asia's enormous success in economic development. A number of recent cross-country and thematic studies have sought to identify and analyze the policies behind this success. Among them is The East Asian Miracle, a recent World Bank publication, which draws in part on the Lessons of East Asia project. Study teams, including in-country nationals, examined in some depth the experiences of the highly successful East Asian economies and the public policies underpinning them.
Several clear contributions emerge from this set of country studies. The research:
Highlights considerable variation in approaches within the group of East Asian economies. For example, some economies chose a substantial degree of government intervention; others did not. The studies dispel the notion that there is a single or uniform East Asian model of success.
Demonstrates that a core set of good economic policiessuch as macroeconomic discipline, outward orientation, and human resource developmentlaid the foundation for East Asia's success. Pragmatic policymakingunderstood as being nonideological and reversibleseems to be at the heart of these policies and merits replication.
Dispels some of the myths about the more idiosyncratic interventions, such as "picking winners" in industry, which sometimes produced the desired result and sometimes did not. Because presence or absence of institutional features seems to have affected the outcomes of these interventions, applications to other regional contexts must be approached cautiously. A dominant finding of the studies is that serious diversions from macroeconomic equilibrium were largely avoided, even by strong interventionists. At the same time, the later generation of industrializers were more successful when they avoided these industrial policies.
A question not easily answered is why East Asian governments adopted fundamentally sound policies and were apparently able to achieve better results from their active policies and to incur lower costs from errors. In this connection, the studies touch on such dimensions
Page iv
of policymaking as the role of the state, leadership, and the bureaucracy. It is one thing to describe the institutional features accompanying a successful episode, however, and quite another to know why and how those features came about. For instance, why did East Asian leaders apparently hold themselves more accountable for economic performance than has been the experience elsewhere? How did the governments manage to gain sufficient national consensus to put difficult policies into effect? These aspects of political economy cannot be ignored. Our analytic tools, however, are severely limited in penetrating these issues, in assessing their impacts, and in assigning credit to them. These country studies are only one step, although a significant one, in deepening our understanding of the experience of East Asia. It is hoped that they will prompt additional work on the institutional foundations of rapid growth.
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