Elgar original reference
Edited by Anis Chowdhury and Iyanatul Islam
Undoubtedly, the rapid transformation of a band of four Northeast Asian economies (South Korea, Taiwan, Singapore and Hong Kong) since the mid-1960s has been unprecedented in economic history. Their experience has surpassed the earlier experience of Japan’s transformation into an industrial economy, and that of the former USSR. Although some similarities between the development strategies of these economies and that of Japan exist, there are signiﬁcant diﬀerences between them, as well as among the four economies themselves, especially in the role of the state. Thus grew a voluminous literature trying to understand the so-called ‘Northeast Asian development model’. The literature has become much more extensive with the rise of second-generation, newly industrializing economies in Southeast Asia, and lately, of China and other transition economies such as Viet Nam. Just when a broad consensus about the basic ingredients for rapid growth appeared to have been reached, the sudden coming of the Asian crisis caught most observers by surprise. Vigorous debates about the causes of the crisis, appropriate policy mix and the institutional arrangement for rapid and sustained growth re-emerged. In other words, the validity of the Northeast Asian development model has been called into question. Observers are also examining the cost of such a rapid transformation and likely future challenges in a fast-changing world. Thus, Northeast and Southeast Asia provide a fertile ground for contesting hypotheses about development strategies. The introductory chapter provides a comprehensive survey of paradigm shifts in development economics, inﬂuenced by the experience of Northeast...