East Asian Miracle Critical Thinkings Examples

Obviously, the success of East Asia in economic activities is the result of the perfect combination of the state’s intervention and lassie-faire. In this case, the “miracle” does not mean accident, but rather is a result of well-thought and careful analysis and consecutive policies. Therefore, the outcomes of such strategy make the East Asian example outstanding and put it in contrast with other regions. However, there are lots of controversies and misinterpretations of what really happened with the economies of some flagship countries in the East Asian region.
East Asian progress has put into question those things that the West takes as the main truth: liberalization and free market ideology. The active role of state served as a prerequisite for well-managed and profitable trade, industry protection and some policies that were aimed and structural transformations. The entire logic of managing the economy contrasted a lot with “Washington Consensus” suggestions proposed by the West.
There are two main outcomes of the entire course of actions taken in the East Asian region: 1) rapid and sustained growth of the economies of “Tigers”, and 2) reduction of poverty and inequality. People started saving and investing more as they gained higher incomes. The growth of production made it possible to diversify and develop it technologically. The situation with employment improved as there appeared more jobs and the wages rose. Therefore, it led to structural change and learning.
The East Asian region experienced growth mostly due to two frameworks under which it performed its policies: “Fundamental Policies” and “Selective Interventions.” However, what one used to consider ‘fundamental’ in WC contrasts with things that received attention in Asia: growth, employment, price, interventionism. Asia also put great emphasis on education, the banking system, agriculture etc.