Ged Carroll

How Asia Works and reading over Chinese New Year

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I have managed to catch up on a lot of reading over the Lunar New Year festival. Joe Studwell’s How Asia Works is fascinating reading. It talks about how Korea, Japan and China have grown while their counterparts haven’t. Studwell highlights a number of factors that contribute to economic growth:

Studwell critiques how different countries throughout Asia have managed to process in this manner including both the strengths and the weaknesses of their respective approaches.

It was fascinating to read how Taiwan managed to succeed in spite of nationalised industries and the challenges in China’s agricultural model.  How General Park ‘motivated’ Korean chaebols and the tragedy of development in Thailand, Malaysia and the Philippines. I can highly recommend How Asia Works.

China’s Crony Capitalism by Minxin Pei explained the mechanism of how corrupt officials, state enterprise employees and businesspeople managed to bilk the Chinese government and people of vast amounts of money. Much of the challenge is structural. China has a federalised government with power lying at provincial, city and county level. Pei is hawkish on the country’s prospects.

For an outside observer Pei’s research into the mechanisms, one can appreciate the challenge that the central government faces in combatting corruption and bad behaviour. President Xi’s ‘tigers and flies’ campaign to root out the worst corruption in the party and business is part of the solution; but according to Pei there is also careful structural reform required. This will only be possible through a massive aggregation of power towards the centre. More related content here.