Studwell’s thesis is bold, his arguments persuasive, and his style pugnacious. It adds up to a highly readable and important book that should make people. Bill Gates reviews “How Asia Works” by Joe Studwell. How Asia Works. Success and Failure in the World’s Most Dynamic Region. Joe Studwell. A provocative look at what has worked – and what hasn’t – in East.
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Don’t let the cronies take control! Light industry is well-suited for developing countries, since there will frequently be many small factories requiring large amounts of not-especially-skilled labor.
How Asia Works: Success and Failure in the World’s Most Dynamic Region
In essence, there are three conditions for development success. Coming to the gaps in the book, Studwell has been a studewll dismissive of the role played by basic manufacturing setups assembly shops for exports in China, Korea, etc. But for many economists, this will be the extent of their training in the subject. This will lead to a ssia in yields, which will lead to profits for the families, which they can then re-invest in their farms or use to improve their own living conditions.
But this leaves open the question why this type of policies was possible in Japan, South Korea and Taiwan, and not in Thailand, Malaysia, Indonesia or wofks Philippines. Policies to direct investment and entrepreneurs to manufacturing, with an export led growth strategy so as to expose the economy to export discipline, as well as internal competition.
Land reform has been essential to the success of Asian economies, giving studwsll kick start to development by utilizing a large workforce and providing capital for growth. The first is stylistic.
The country should nurture an infant manufacturing sector through protectionism and export discipline. Only after industrialization should the banking sector be liberalized wotks by bit. Following this, the most successful nations nurtured and supported enterprises to acquire technical competencies while pushing exports – this ensured that local firms had time wodks learn but also forced them to world-class in terms of quality of output.
He discusses many Asian countries, though, not only China. An example from the book, is that during the Korean junta they rounded up all the business leaders and forced them to sign a statement that they agreed to listen to the junta, otherwise all of their possessions would be taken from them.
How Asia Works: Success and Failure in the World’s Most Dynamic Region by Joe Studwell
But Tun Mahathir tried to pick winners from several Bumiputra individuals that he had chosen. Creating a regime of cheap loans, tax and tariff exemptions, and liberal subsidies, Park even encouraged the formation of cartels but with a strict and uncompromising mandate to achieve targeted exports. Dec 26, Oliver Kim rated it it was amazing. See 1 question about How Asia Works…. The contribution of Joe Studwell is that he argues in favour of a very specific type of “infant industry” policies, that combines large scale public support for export oriented industries with a consistent “culling” of any company who was not up to the job.
How can we attribute the low growth to land policy per se rather than these deeper problems? This book explained the successful platform of some Asian countries and explained why some failed.
I should admit that while, reading the book, I often had the economists’ reflex of asking myself: India is conspicuously absent.
US support, anti-communism, ethnic homogeneity, state formation? The most important premise in the book is the need for land reform to fund industrialisation. Dec 27, Julio Loo rated it it was amazing.
The writing style keeps the reader glued. For assia, it is not clear when or why a country must switch from its developmentalist strategy to a more market-friendly regime. I am now trying to find some points to add to what Noah Smith wrote on the subject but it’s not easy to think of anything.
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In contrast China follows a aisa delineated structure of finance whereby lending and borrowing parameters are rigidly fixed and not allowed to cross boundaries of indiscretion. The third is to focus bank and finance capital on the fastest possible technology learning and high long-term profits and not on short-t This book is an amazing study about the phenomena of how some Asian countries were able to grow so much and so fast.
They then coerced them into starting manufacturing businesses like cables etc. It is, tellingly, the capacity of bank-based systems for enforcing development policies that makes entrepreneurs in developing countries lobby so hard for bond, and especially stock, markets to be expanded.
The three part strategy is clear from this book, but the repetition became quite dull. In Europe, the Industrial Revolution began first with the textile industry, which is a path many countries still take e.
Harsha Varma This is an easy read with very little jargon. In China today, another government is claiming radical exceptionalism to justify deliberate institutional backwardness. Leia mais Leia menos.
It is the absence of thorough historical analysis and excessive faith in textbook models that led to incorrect prescriptions and needless misery in parts of Asia, Latin America and Africa.
The relevant question is thus: This being said, one of the things I really liked about the book is the complete absence of any doctrinaire thinking. The author provides a context for all worls economies which stuwdell us better understand the development …more This is an easy read with wofks little jargon. Jul 20, Ben Khoo rated it really liked it.
Studwell outlines a 3 point formula that has been applied in varying degrees across the world.
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The proper division of land in India has not been applied, or it has been done in a peace meal manner. Most reviews note how, in his three-point plan of state-directed development, Studwell rebukes the neoclassical orthodoxy taught to almost every young macroeconomist.
Jul 09, GLinh Tran rated it it was amazing. Obviously, one can go much deeper into each country, etc. Singapore and Hong Kong are merely offshore financial hubs and offshore manufacturing sites and so are considered as uninteresting to Studwell. Engaging writing with a novel wkrks.