Home » Model, Myth, or Miracle?: Reassessing the Role of Governments in the East Asian Experience by Beatrice Weder
Model, Myth, or Miracle?: Reassessing the Role of Governments in the East Asian Experience Beatrice Weder

Model, Myth, or Miracle?: Reassessing the Role of Governments in the East Asian Experience

Beatrice Weder

Published February 1st 1999
ISBN : 9789280810301
Paperback
169 pages
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 About the Book 

Before the financial crisis of the late 1990s, the East Asian experience was hailed as a miracle and a model of successful development. A broad consensus had been reached on the role of governments in engineering this economic success, and rapidMoreBefore the financial crisis of the late 1990s, the East Asian experience was hailed as a miracle and a model of successful development. A broad consensus had been reached on the role of governments in engineering this economic success, and rapid growth was generally attributed to sound policies that were underpinned by a solid institutional framework. In the aftermath of the financial crisis, however, the miracle has been dismissed as a myth and a bad example that other countries should avoid. Critics allege that governments not only made serious policy mistakes, but also that the institutional framework was not so beneficial after all. The term crony capitalism is frequently used to summarize this notion. This book investigates the role that institutional conditions played in the miracle, and whether they had a part in causing the crisis. The focus is on such factors as the close ties between the public and private sectors, the incentives structures within the public sector, and corruption. Empirical tests show that these factors can indeed contribute to explaining differences in economic growth. The data also show that the notion of distinctive East Asian experience is misguided because there were always large differences in institutional conditions among the miracle economies. Scorecards of institutional performance are presented for Thailand, Malaysia, South Korea, Singapore, and Hong Kong The volume ends with a detailed discussion of the role of corruption. The author concludes that, contrary to popular belief, there is no evidence of corruption having cased the crisis.