Rethinking the East Asian Miracle (World Bank Publication)

This volume provides highly illuminating, analytic perspectives on key facets of the East Asian economies. It discusses weaknesses in the financial sector, corporate governance, exchange rate and trade policies, regulatory capability, and proposes remedies. Rethinking the East Asian Miracle is an indispensable book for all those with an interest in East Asia's prospects in the early decades of the new century. CONTENTS......Page 3 PREFACE......Page 6 ACKNOWLEDGMENTS......Page 7 CONTRIBUTORS......Page 10 1 The East Asian Miracle at the Millennium Shahid Yusuf......Page 12 2 Growth, Crisis, and the Future of Economic Recovery in East Asia Takatoshi Ito......Page 65 3 Technological Change and Growth in East Asia: Macro versus Micro Perspectives Howard Pack......Page 106 4 Chinese Rural Industrialization in the Context of the East Asian Miracle Justin Yifu Lin and Yang Yao......Page 153 5 After the Crisis, the East Asian Dollar Standard Resurrected: An Interpretation of High-Frequency Exchange Rate Pegging Ronald I. McKinnon......Page 208 6 Industrial and Financial Policy in China and Vietnam: A New Model or a Replay of the East Asian Experience? Dwight H. Perkins......Page 258 7 Government Control in Corporate Governance as a Transitional Institution: Lessons from China Yingyi Qian......Page 306 8 The Government-Firm Relationship in Postwar Japan: The Success and Failure of Bureau Pluralism Tetsuji Okazaki......Page 334 9 Miracle as Prologue: The State and the Reform of the Corporate Sector in Korea Meredith Woo-Cumings......Page 354 10 Trade and Growth: Import-Led or Export-Led? Evidence from Japan and Korea Robert Z. Lawrence and David E. Weinstein......Page 390 11 Emergence of an FDI-Trade Nexus and Economic Growth in East Asia Shujiro Urata......Page 420 12 Rethinking the Role of Government Policy in Southeast Asia K. S. Jomo......Page 472 13 From Miracle to Crisis to Recovery: Lessons from Four Decades of East Asian Experience Joseph E. Stiglitz......Page 520 Initially, the intention of this book's work, was to take a fresh look at East Asia's regional experience during the 1990s, and to expand, and revise as necessary the findings of the World Bank's "East Asian Miracle", (published in 1993). However, while work began in 1997 - when the East Asian crisis was only a small, localized cloud over Thailand - the seriousness of the crisis demonstrated the need to bring together a number of different perspectives on key aspects of the East Asian model, and its several country variants. The book assesses the evolving experience with industrial policies, in the forms implemented by individual countries in the region, examines in depth how the Chinese experience meshes with those of other economies in the region - a dimension absent in the "East Asian Miracle"--And, the rich evidence from the 1990s, casts new light on the relative contribution of export-led policies, and of import liberalization to growth, while helping to clarify key issues that influence the choices of exchange rate policies. Taking into account the realization that understanding the East Asian development requires admittance of the political economy of change, of governance, and of the roles of key institutions, the contributors to this book, considered each of these carefully, and offer an economic kaleidoscope on East Asia that is deep, and analytically rigorous Annotation Illuminating, analytic perspectives on key facets of the East Asian economies. Discusses weaknesses in the financial sector, corporate governance, exchange rate and trade pollcies, and proposes solutions. Several contributors discuss the complex political economy of development in East Asia and show how interaction among government, business, and the banking system must evolve to minimize the risk of periodic crisis This volume provides analytical perspectives on key facets of the East Asian economies after the crisis of 1997-99. It discusses weaknesses in the financial sector, corporate governance, exchange rate and trade policies The 1990s were interesting times for East Asia in the literal sense of the term and in the more ominous sense conveyed by the famous Chinese saying.