Krugman Paul in the Myth of Asia’s Miracle demonstrates the theoretical understanding of the rapid growth of the East Asian economy. Through the attributes of the high rate growth of productivity with the factors of production and effective public policy influenced the success of the economy. The article proposes a combination of policy initiatives by the governments to adopt the strategic direction of free trade as a foundation for sustainability in the economic growth.
The basis that characterize Krugman approach is informed by a collective understanding and reference to eight high performing Asian Economies. To augment his hypothesis, the author established the relationship between the success of the economic growth and the public policy initiative with reference to the existing economic crisis in Europe.
The characteristic 21st C success in the economic environment of East Asia is largely attributed to a model of political governance based on authoritarianism. It is from the perspective of such a regime that the implementation of public policy by domestic governments utilized the autocratic tendency to enhance the decentralization of markets (69). From this belief, the high performing Asian economies employed variety policy direction to realize the functional growth of the economy wrought together with the philosophy of accumulation, allocation and growth in productivity.
The promotion of policy and institutional reforms resulted in the strength of competition, development of human capital and other physical; resources as well as liberalization of trade. Nonetheless, Krugman emphasis on the need for planning through the nexus of polices to allow the economic environment for accumulation of economic resources (78). This perspective constructed the model of growth founded in East Asia as a pivotal tool for the implementation of strong economic growth, structural and institutional reforms.
Work Cited
Krugman, Paul. “The Myth of Asia's Miracle” Foreign Affairs; Nov/Dec 1994; 73, 6; ABI/INFORM Global pp. 62-78
