U. S. Economic Development Policies Towards the Pacific Rim: Successes and Failures of U. S. Aid

US aid interventions have greatly advantaged some countries in their quest for development, but not others. The extensive development assistance, technology transfers and market access that the United States government granted Taiwan and South Korea in their development and the aid recently given Costa Rica were important factors in their development successes. On the other hand, the inappropriate policies of the US in Vietnam in the fifties, El Salvador in the eighties and Nicaragua in the nineties, programmed these interventions to economic as well as political failure.

US aid interventions have greatly advantaged some countries in their quest for development, but not others. The extensive development assistance that the United States government granted Taiwan and South Korea in their development and the aid recently given Costa Rica were important factors in their development successes. On the other hand, the inappropriate policies of the US in Vietnam in the fifties, El Salvador in the eighties and Nicaragua in the nineties, programmed these interventions to economic as well as political failure.

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This study of the successes and failures of US economic interventions shows that aid can be successful when it is provided in significant amounts, supports equitable asset distribution, and is accompanied by access to US markets for sale of the less developed country's products. Analyzes specific countries including Taiwan, South Korea, Nicaragua, and Costa Rica. Wiegersma teaches economics at Fitchburg State College. Medley teaches economics at the University of Southern Maine. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Prepublication praise for US Economic Development Policies Towards the Pacific Rim: 'US Economic Development Policies Towards the Pacific Rim is a lucidly argued brief for the combination of international cooperation, effective governments, and market-based development as the foundation of successful strategies. The book will be valuable reading for global policymakers seeking a way out of the current imbroglios in Asia, Africa, and Latin America. In addition, its mix of applied experience and analytical brio will appeal to most classroom audiences.' - John Adams, Affliliation 'Exploring the 'success stories' of economic development in Korea, Taiwan, and Costa Rica, and the relative failures elsewhere in Central America, this book advances our understanding of the circumstances when foreign aid truly promotes development and why. The authors build a persuasive case that success has been founded on New Deal-style redistributive policies, whereas failure has resulted from Cold War-style support to oligarchic regimes.' - James Boyce, University of Massachusetts, Amherst This study of the successes and failures of US economic interventions shows that aid can be successful when it is provided in significant amounts, supports equitable asset distribution (e.g. land reform) and is accompanied by access to US markets for sale of the less developed country's products. Economic aid to Korea and Taiwan, established before the development of Cold War anticommunist policies, helped these countries achieve economic development. On the other hand, post-Cold War aid to various countries in Southeast Asia and Central America supported reactionary, ineffective and unpopular governments, and produced institutional changes whose purpose was political (anticommunist) rather than economic. With the waning of the Cold War, US aid and trade policies in Costa Rica in the 1980s again met with success because the relevant governments' social democratic politics produced similar institutional foundations as were present in the Taiwan and Korean cases "US aid interventions have greatly advantaged some countries in their quest for development, but not others. The extensive development assistance that the United States government granted Taiwan and South Korea in their development and the aid recently given Costa Rica were important factors in their development successes. On the other hand, the inappropriate policies of the US in Vietnam in the fifties, El Salvador in the eighties and Nicaragua in the nineties, programmed these interventions to economic as well as political failure."--Jacket