Economic Reform in Asia

Economic Reform in Asia

China, India, and Japan

Sara Hsu

Economic Reform in Asia compares and analyzes the reform and development patterns of China, India, and Japan from both historical and developmental perspectives. Sara Hsu specifically focuses on China’s reform and opening-up in 1979, India’s accelerated liberalization in 1991, and the outset of the Meiji Restoration in Japan in 1878. This detailed overview of growth patterns in Asia’s largest economies is invaluable, especially in its determination to understand which development policies work, what role institutions play in development, and what issues may arise during said development.

Chapter 1: Introduction to development in China, India, and Japan

Sara Hsu

Subjects: asian studies, asian development, asian economics, economics and finance, asian economics

Extract

Development economics examines the economics of the developing world, or countries with low and middle levels of income. The gap between the developing and developed world is large in terms of both levels of income and various measures of living standards. The concept of development has evolved over time, from one of measuring gross domestic product (GDP) per capita, to one that takes into account a variety of other measures, such as health and education, and institutions. Societies choose development trajectories based upon political conditions, availability of natural resources, characteristics of the population, geography, and other factors. The outcomes of development policies in different contexts vary wildly, and countries that follow the same policies do not necessarily end up at the same level of development. For example, structural adjustment programs implemented in developing countries to encourage privatization, trade and financial liberalization, and deregulation often resulted not in economic development, but in various stages of economic degradation, including crisis.