Week 3: Growth of Asia

Question 1

Theories of Development in Asia

Answer 1

Neo-classical, State-led intervention, Eclectic approach (interplay of state, social class, world system).

Question 2

Flying geese pattern of development

Answer 2

Development trajectory in which latecomers replicate the development experience of others. Stage model.

Question 3

Factors contributing to Asian success (Wee and Tan)

Answer 3

Strategic choices, Factor endowments, Non-economic factors (Culture, Need for survival, Strong government, Historical factors, Developing at the right time).

Question 4

Disembedding of firms from development state

Answer 4

Over time, national firms de-coupled from the development state to re-couple with lead firms in a GVC. State became incapable of directing large firm behaviour due to internal changes, transformation of markets, and national firms becoming less reliant on government.

Question 5

Compressed development

Answer 5

No longer possible for countries to follow the same path as Japan and South Korea. Compressed stages as well as simultaneous industrialisation and de-industrialisation. GVCs foreclosed ‘the late development model path to most recent developers’. Faster pace than the flying geese model.

Question 6

Dragon multinationals (example)

Answer 6

Refers to exceptional cases of compressed development at the corporate level in China (Lenovo, Huawei, Haier).

Question 7

India’s integration into GVCs

Answer 7

Not integrated into regional value chains, hence no ‘production ladder to climb’. Needs to ‘look for the next generation of global value chains’.