The East Asian Miracle
Economic Growth and Policy
A World Bank Policy Research Report
A. Key Ideas & Overview
-- Miracles: some phenomena or occurrences cannot be explained scientifically by causal
-- Myth: some accepted beliefs or stories that may not necessitate scientific explanation.
-- This paper intends to explain relationship between government, the private sector, and
the market, and how such relationship bring about economic growth of East Asia countries.
-- Thus an understanding of different Government Policies and market forces is crucial here
to explain economic growth of this region.
-- Key forces driving the growth: accumulation of physical and human capitals
-- Physical capital: reliance of modern technology
-- Human Capital: education
-- Categories: HPAEs (High Performing Asia Economies)
-- Japan: hyper growth country
-- Four Tigers: Hong Kong, Korea, Taiwan and Singapore
-- Newly Industrialised Economies (NIEs): Indonesia, Thailand and Malaysia
--Implication of Growth:
-- more equal income distribution: Gini Coefficient
-- improvement of life expectancy
-- improvement of other social-economic indicators: like education
-- Engines of Growth: increase of private investments ( physical capital) and growth of
-- Private Investments: strong financial savings and technology