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LectureNotes - Week 2: Political Science in East Asia...

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Unformatted text preview: Week 2: Political Science in East Asia Lecture. Tuesday, 08 Apr 08 Elements of the Market-Based Approach: all coming down to comparative advantage of specialization. Advice was that the way to maximize use of existing resources will give you an advantage in this type of history. You are going to produce at a lower cost and produce more efficiently. - four tigers: Korea , Taiwan, Singapore, Japan. Week 2: Political Science in East Asia Lecture, Thursday, 10 Apr 08 Elements of the Asian Model: what they did. A. Conscious focus on export-led industrialization (ELI or OOI). (this was a strategy they used)- This strategy arose after the ISI. They realized competitors abroad were more advance and developed. Challenging the idea caused many people to believe these asian countries were going to fail. - Thought they had to export to industrialize rapidly. - Didnt have a lot of the materials at home. They were forced to be traders. - The decision to do this strategy meant theyd head to head with giant companies. This in turn forced them to be better. They had to become more efficient, better quality, etc. B. Effective balance between market forces and state role- The state owned sectors in these countires tend to be really small. They dont own large portion of the industry. C. Active state role to intervene in, reshape economy 1) late development. -striking balance between state and market is the key here. - Think about united kingdom in 1920, first industrialization where they didnt have any competitiors. The argue was that the market to grow through the individuals, gaining experience, creating better industries. When others tried to establish industrialization but the british were already there. To entry-cross in the industries was very difficult. You needed money, machinery, goods, new technology. The ability to enter into an industry and succeed is extremely difficult. This was the idea of the Late Development. - State would be a social answer of risk. The state supporting this industry, or protecting it, or some form of backing, only then will you see entrepreneurs going into that sort of industry. Leaving it to the market would make it hard. But having the states backing could be way easier. 2) creating comparative advantage- states were consciously trying to upgrade endowments. - Many of these countries focus on the same type of industries. (steel, shipmaking, autos, etc) 3) key tool: industrial policy investment and disinvestment decisions...
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This note was uploaded on 06/09/2008 for the course IS 179 taught by Professor Uriu during the Spring '08 term at UC Irvine.

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LectureNotes - Week 2: Political Science in East Asia...

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