Response to the reading
The Asian economic history is written in terms of western impact on Asia. The international contact between Asian countries is not considered as significant in understanding the regional economic modernization. The growth of East Asian economic relation, Japanese economic history occupies a central place in the analysis with regard to the interwar period. Since these interactions have received less attention and Japanese-language sources are insignificantly used, the author concentrates on the outside empire to try understanding the Japanese empire well (Sugihara 2005).
Trade and other economic interactions between china and japan are significant in shaping regional industrialization pattern. The two countries did not import western technology but rather introduced industrialization programs amidst the political and military conflict between them. Migration, growth of intra-Asian trade, capital flow and contact with the west promoted Chinese integration into the international economy.
The trade and migration within territorial and colonial borders helps to understand colonialism and the international climate of imperialism (Sugihara 2005). This focuses on the colonial discrimination, economic and political situational exploitation. However, they contributed to the regional and international development by bringing expertise and entrepreneurship skills they had in the WWII.
These topics have not gained publicity due to two major reasons. First, Asia had a regional view and lacked internally generated forces of change in technology and institutions. However, literature review has enabled these corrections (Sugihara 2005). Secondly, the available literature, revisionist and traditional are written on a single country perspective. There is little focus on the dynamic gains from the regional trade and technology. Regional interactions contribution in the economic development is yet to be established.
The growth of Asian international economy was through Chinese export of tea and silk to the West. China in return wanted to import silver for trade, Britain failure to provide this trade good prompted the growth of large-scale trade with India. This optium triangle is viewed from a British point with little attention on China. However, this trade is significant in Chinese integration to the international economy. It brought rise to Singapore, Hong Kong and Shanghai centers of trade (Sugihara 2005).
Establishment of colonial regimes and opening of the East Asian ports facilitated the growth of the Asian-Western trade to the world trade magnitude. Export grew with a 3.2% and imports at 4.3% annually while the trans-Asian trade grew with a 5.5%. Africa, Latin America or Europe did not experience trade of this magnitude (Sugihara 2005). Intra-Asian trade influenced the growth of multilateral settlement patterns in the world.
At the end of 19th century, most of Japanese trade was with other Asian countries. Fluctuations in Chinese trade led to trade deficits as Asia was importing more than her exports. This led to the growth cotton as a trade good to smooth trade deficit between Asia and the West. Chinese merchants were important in promoting Japanese export trade (Kang 2012). They offered information, contacts and trust from their networks and experience.
The trade went through more transformation in the interwar period. Japan increased her trade with Korea, Taiwan and Manchuria she exported manufactured goods. China foreign trade shrank during the war. The trade within Asia was developing and china was importing more machinery from Japan than the West (Sugihara 2005). The trade facilitated migration, the regional investment was generating large flow of capital across Asia
According to Kaoru Sugihara, modern Asian international economies grew through trade, remittance and migration. Western export to Asia cannot be said to be the reason for the Asian international economy.
The growth of Asian international economy occurred in response to the impact of the west. This economy exists not in isolation but in a world that other competitive economies exist too. The author suggests that Asian economy grew due to the contribution from western countries. Rather than treating it as a suggestion, it should actually be regarded as an indubitable veracity as economies have the potential to influence each other.
Infrastructural development largely contributed to economic growth as people were able to trade more freely and more business opportunities opened up (Kang 2012). However, it is due to this that the slave trade thrived causing undue suffering to many blacks. The point of interstate rivalries causing protectionism after the 19th century lacks details and a clear relationship between it and economic stagnation does not clearly come out.
China’s economic policy was very favorable for the growth of its economy and that of its trading partners. China provided supplementary international goods which were of crucial importance to local merchants and local producers (Kang 2012). Asia’s export to the west also had a significant effect on the growth of intra-Asian trade. Due to the exports, the economies of littoral china, Southwest-Asia and japan grew. However, foodstuffs are listed as the main exchanged goods during those times. One may wonder if other goods such as machineries were not in existence or were not traded in.
There were so many critical issues that derailed the East Asian economy. However, in 1930s, japan was able to achieve a quick industrial recovery from the great depression. It was basically able to do this by investing in chemical industry, regional industrialization and intra-Asian trade. China also had its internal problems too (Sugihara 2005). It urgently needed energy and raw materials to be used in its newly established industries. Political instability was also common and really disrupted economic development. Despite these challenges, china was able to maintain her drive for industrialization and remained an economic giant throughout 1930s. However, Japan’s military capability and china’s endowment with natural resources played a significant role in the economic growth of the region (Kang 2012). The author tends to underrate the role played by western powers in economic growth yet it is clearly that they fully supported the economies. However, Britain should have extended the influence of sterling to china rather than valuing its currency for the benefit of china.
The volume is divided into four portions that look at different aspects that are closely interconnected. The Chinese merchant community and the history of the interaction between Chinese and Japanese textile industry is clearly brought out (Sugihara 2005). The intermeshing of traditional elements and the western impacts and its general effect on the economy is clearly portrait and somehow entertaining to learn the history.
The fall of the ancient Chinese monetary system and rise of nationalists’ movements that was aimed at fostering and protecting domestic industries. The author should expand further to include not only the protection of industries in west Asia but also globally (Sugihara 2005). The internal trade in china was recognized by many countries even after the world war. China’s economic relations with Southeast Asia and Taiwan are presented in a clear and precise manner. Ethno linguistic networks also played a major role in the trade as it enabled free transfer of labor. Labor mobility increased immensely and workers were constantly moving in search of better working conditions.
Works Cited
Kang, David C. East Asia Before the West: Five Centuries of Trade and Tribute. New York: Columbia University Press, 2012. Print.
Sugihara, Kaoru. Japan, China, and the Growth of the Asian International Economy, 1850-1949. Oxford: Oxford University Press, 2005. Print.
