Emerging States and Economies: Their Origins, Drivers, and Challenges Ahead (Emerging-Economy State and International Policy Studies)

This open access book asks why and how some of the developing countries have "emerged" under a set of similar global conditions, what led individual countries to choose the particular paths that led to their "emergence," and what challenges confront them. If we are to understand the nature of major risks and uncertainties in the world, we must look squarely at the political and economic dynamics of emerging states, such as China, India, Brazil, Russia, and ASEAN countries. Their rapid economic development has changed the distribution of wealth and power in the world. Yet many of them have middle income status. To global governance issues, they tend to adopt approaches that differ from those of advanced industrialized democracies. At home, rapid economic growth and social changes you put pressure on their institutions to change. This volume traces the historical trajectories of two major emerging states, China and India, and two city states, Hong Kong and Singapore. It also analyzes cross-country data to find the general patterns of economic development and sociopolitical change in relation to globalization and to the middle income trap Preface 6 Contents 8 Editors and Contributors 9 1 Emerging States and Economies in Asia: A Historical and Comparative Perspective 11 1.1 Asia in the Long Nineteenth Century 14 1.2 Asia Under the US Hegemony 21 1.3 Challenges Ahead 28 1.4 The Shape of This Book 31 References 37 2 Globalization and the Emerging State: Past Advance and Future Challenges 40 2.1 Introduction 40 2.2 Which Countries Are the Emerging States? 43 2.3 Globalization and Its Anticipated Impacts on the Emerging States 46 2.3.1 Anticipated Impacts of Globalization 46 2.3.2 Two Aspects of Globalization and the Emerging States 49 2.4 Actual Impacts of Globalization on the Emerging States 51 2.4.1 Globalization and Economic Growth 52 2.4.2 Social Policy and Income Distribution 58 2.4.3 Globalization and Political Transformation 63 2.5 Institutions and Economic and Social Performance 64 2.5.1 Political Regime as a Macro-Political Institution 65 2.5.2 Bureaucracy as a Micro-Level Institution 67 2.6 Future of the Emerging States 68 2.6.1 Modes of Global Integration 68 2.6.2 Coordination Capability for Technological Upgrading and Inclusive Growth 70 2.7 Concluding Remarks 72 Appendix 1: GDP Growth Rate and GDP Per Capita 73 Appendix 2: Institutional and Economic Globalization and GDP Growth Rate (Annual Average) 75 References 76 3 The Asian Path of Economic Development: Intra-regional Trade, Industrialization and the Developmental State 81 3.1 Intra-Asian Trade as a Key Agent of Regional Industrialization 82 3.2 Pre-industrial Roots and Trade Integration: the Western Impact 87 3.2.1 State Formation in Agrarian and Maritime Asia 87 3.2.2 The Emergence of an Asian International Division of Labour 90 3.3 The Post-war Industrialization and the Developmental State 92 3.3.1 Open Regionalism Under the Developmental State 92 3.3.2 Labour-Intensive Industrialization and the Improvements of the Quality of Labour 95 3.3.3 Capital- and Resource-Intensive Industrialization and the Improvements of Physical Infrastructure 98 3.4 Dealing with Local Resource Constraints 101 3.5 Concluding Remarks 103 References 104 4 Financing Colonial State Building: A Comparative Study of the 19th Century Singapore and Hong Kong 108 4.1 Introduction 108 4.2 Singapore 110 4.2.1 Population 110 4.2.2 Revenue 110 4.2.3 Policing “Secret Societies” 112 4.3 Hong Kong 116 4.3.1 Population 116 4.3.2 Revenue 116 4.3.3 Policing Colonial Hong Kong 118 4.4 Comparison 121 4.5 Concluding Remarks 122 References 123 5 China’s Emerging State in Historical Perspective 126 5.1 Clarifying Problems, Formulating an Approach 126 5.2 Problems and Persistence of Chinese Empire—Legacies for the Present 129 5.3 From Empire to 20th-Century State—Power and Wealth, Party and State 135 5.4 China and Other World Regions, Globalization and Global Hegemonies 139 References 143 6 A History of the Indian Economy in Asian and Global Contexts, 1810s–2010s 145 6.1 Introduction 145 6.2 The Era of Opium and Indigo, 1810s–1850s 146 6.3 The Era of Classic Colonialism, 1850s to 1920s 148 6.4 The Era of Depression and War, the 1930s and 1940s 150 6.5 The Era of State-Led National Development, 1940s to 1990s 152 6.6 India in the Era of “the Rise of Asia” 154 References 156 7 Middle-Income Trap in Emerging States 158 7.1 Introduction 158 7.2 How Difficult Is It to Avoid the Middle-Income Trap? 160 7.3 A Conceptual Framework 161 7.4 Education 164 7.4.1 Educational Catch-up and Economic Catch-up 164 7.4.2 The Quality of Education 167 7.4.3 Educational Reform 169 7.4.4 Education and Income Inequality 171 7.5 Industrial Development and Upgrading 173 7.5.1 Drivers and Obstacles 173 7.5.2 Insufficient Responses to Higher Wage Rates 175 7.5.3 The Role of Government in Industrial Upgrading 177 7.6 Emerging States with Large Population and Territory 177 7.6.1 Similarities and Dissimilarities in Development Paths 177 7.6.2 Differences in Behavior 179 7.7 Conclusion 180 References 181 Front Matter ....Pages i-x Emerging States and Economies in Asia: A Historical and Comparative Perspective (Takashi Shiraishi)....Pages 1-29 Globalization and the Emerging State: Past Advance and Future Challenges (Keiichi Tsunekawa)....Pages 31-71 The Asian Path of Economic Development: Intra-regional Trade, Industrialization and the Developmental State (Kaoru Sugihara)....Pages 73-99 Financing Colonial State Building: A Comparative Study of the 19th Century Singapore and Hong Kong (Takeshi Onimaru)....Pages 101-118 China’s Emerging State in Historical Perspective (R. Bin Wong)....Pages 119-137 A History of the Indian Economy in Asian and Global Contexts, 1810s–2010s (Sugata Bose)....Pages 139-151 Middle-Income Trap in Emerging States (Tetsushi Sonobe)....Pages 153-177