Asian Responses to the Global Financial Crisis

Asian Responses to the Global Financial Crisis

The Impact of Regionalism and the Role of the G20

Edited by Jehoon Park, T. J. Pempel and Geng Xiao

The expert contributors – both Asian and Western – illustrate that as G20 members, many Asian countries are now able to showcase their increasing powers and influence on global issues. Within this context, and via multidisciplinary economic and political science perspectives, the book deals with various issues such as World System analysis, the debate between the Washington Consensus and the Beijing Consensus, roles within the G20, and the contribution of ‘middle’ powers such as Korea and Australia. The application of European experiences to Asia is also considered, as are perspectives from the US. The book concludes that the key to resolving the current global economic crisis lies in how quickly a new global governance and monitoring system can be constructed, and that there are multiple roles for Asian countries to play in its development.

Chapter 3: Asian Capitalism: Beijing Consensus as an Economic Development Model for the 21st Century

Edward K.Y. Chen

Subjects: asian studies, asian economics, economics and finance, asian economics, politics and public policy, international politics, international relations, urban and regional studies, regional studies


Edward K.Y. Chen1 3.1 INTRODUCTION: VARIETIES OF CAPITALISM Capitalism is characterized by the private ownership of the means of production, the production of commodities for sale, and the use of the market mechanism for allocating resources. Some (Weinberg, 2002) assert that the development of capitalism also depends on conditions such as: (1) institutional arrangements to ensure a dependable supply of labor; (2) a degree of social productivity sufficient to permit sustained investment; (3) commercial organization of the market whose scope is adequate to the productivity of the community; (4) a political process whereby economic power can become translated into government policy; and (5) a legal structure which is sufficient to protect private property. There is no pure capitalism in the real world; the type of capitalism depends of course on the degree of state ownership and the degree of state intervention in resources allocation. Furthermore, capitalism can be classified in accordance with the factors governing the behavior and strategy of firms. While earlier studies were on firm-based governance mechanisms to minimize transaction costs in shaping firm strategy (Williamson, 1985), the more recent literature puts emphasis on the importance of the institutional arrangements (such as capital and labor markets, environment, social welfare policies, industrial relations, interfirm relationships, state–business relationships) and the complementarities of these institutions in affecting firm strategy (Hall and Soskice, 2001).2 Different types of capitalism (varieties of capitalism) would then produce different ‘emblematic’ firms which adapt to the particular institutional environment. Thus the variety of capitalism is...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information