What theories explain the success of East Asian development models?

The success of East Asian development models is often attributed to the developmental state theory and the export-oriented industrialisation theory.

The developmental state theory posits that a proactive government plays a significant role in guiding economic development and using the resources of the country to meet the needs of the nation. In the context of East Asia, countries like Japan, South Korea, and Taiwan have had governments that were deeply involved in their economies. They implemented policies that promoted industrialisation and modernisation, such as investing heavily in education and infrastructure, providing subsidies to key industries, and protecting domestic industries from foreign competition until they were competitive enough to compete globally. This approach is often contrasted with the laissez-faire economic policies of Western countries, where the government plays a less active role in the economy.

The export-oriented industrialisation theory, on the other hand, suggests that countries can achieve rapid economic growth by specialising in the production of certain goods or services for export. East Asian countries like China and South Korea have successfully used this strategy to transform their economies. They focused on manufacturing and exporting goods to the global market, which not only brought in foreign currency but also helped to develop their domestic industries. This strategy was particularly effective because it allowed these countries to take advantage of the global demand for cheap manufactured goods.

Furthermore, the Confucian values of hard work, discipline, and respect for education, which are prevalent in East Asian societies, are also often cited as contributing to their economic success. These values have helped to create a highly educated and disciplined workforce, which is a key factor in economic development.

In addition, the geopolitical situation in East Asia during the second half of the 20th century also played a role in their economic success. The Cold War created a strategic need for the United States to support the economic development of its allies in the region, which led to significant financial and technical assistance.

In conclusion, the success of East Asian development models can be attributed to a combination of proactive government policies, export-oriented industrialisation, cultural factors, and geopolitical circumstances.