By Steve Chan, Cal Clark, Danny Lam
This number of essays examines the ancient impression of states in East Asia's political economies, and considers their contributions to the continuing social, fiscal and political transformation of the nations during this zone. They convey that the prestige of those so-called developmental states have advanced over the years, and that their position and capability were considerably with regards to the social bases and cultural roots of the correct countries.
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Extra info for Beyond the Developmental State: East Asia’s Political Economies Reconsidered
Note 1. An earlier version of this chapter was published in Governance, 7 (1994), pp. 332-59. It has been revised and condensed for publication here with the permission of Basil Blackwell. 4 More than the Market, More than the State: Global Commodity Chains and Industrial Upgrading in East Asia Gary Gereffi STATES AND MARKETS IN EAST ASIA'S "ECONOMIC MIRACLE" Japan and the newly industrializing countries (NICs) of East Asia - South Korea, Taiwan, Hong Kong, and Singapore - have been dubbed "miracle economies" because of their unparalleled accomplishments in the latter half of the twentieth century.
However, local firms were able to enter these sectors over time, and some became quite competitive internationally. Many of the indigenous firms were started by former employees of the MNCs who learned the business and then struck out on their own. The key factor stimulating such spin-offs, in turn, clearly was not any state policy but was the culture promoting entrepreneurship in Taiwan's Chinese society (Haggard and Cheng, 1987; Kuo, 1995; Lam, 1992; Schive, 1990). STATE AND MARKET IN A BROADER SOCIAL ENVIRONMENT The four sets of paired comparisons in the previous section suggest that neither state nor market (in the absence of state) by themselves can adequately explain the great variations in economic performance among the countries examined.
Foreign investment, however, has not stimulated increased productivity and competitiveness. Rather, the MNCs have evidently been attracted by the protected domestic market and have not challenged the complacency of the system (Higgott, 1987). The Asian cases also raise doubts about statist claims concerning the effects of MNCs on the domestic economy. Strong states have followed quite different strategies towards foreign capital; and similar strategies of controlling the MNCs have produced widely divergent results.