Role of government in East Asian miracle Research Paper

Role of government in East Asian miracle - Research Paper Example This paper discusses the economic boom which we see in East Asian countries. Despite a few ups and downs close to the end of the century, it is an example of regional development beyond anything. The rapid and well paced development that came in the last 40 years started off largely based on development and manufacturing of simple products like toys and apparel but then keeping up the pace of development reached to the development of automobiles and robots. With mass production and integration of technology and the products marketed towards the major European and American markets, the principal factors that have proven to be the major advantages are low cost of labor, growth in production quality and experience, competitive currency exchange rates in the region and compared to other global currencies and integration of latest technology in the production processes. A clear example of such development is clearly evident from the progress of china which became one of the leading produc ers of products that are completing with some of the most popular brands in the world. Japan which was entirely devastated due to the Second World War did not come out of its chaotic situation automatically; instead, the entire fabric of the country was integrated into one agenda that was of massive development. Unlike most of the westerns countries, the major player in the development of most of the East Asian countries remains the government. Each government played a pivotal role in the formulation of policy and national agenda of economic development that resulted in the miracle to happen. The fact cannot be denied that the global economic changes also played their role in the rapid progress of this region but not completely responsible for it. An independent study conducted by the World Bank on the progress of East Asian tigers, the â€Å"The East Asian Miracle† remarks that: Fundamentally sound development policy was a major ingredient in achieving rapid growth: macro ma nagement, saving promotion policies, education, agricultural productivity, . . . But these fundamental policies do not tell the whole story. Government intervened, targeting selected industries, promoting exports, low interest rates, protecting certain industries, . . . rapid growth has at times benefited from careful policy intervention. (1996: 5) The governments have the control and the ability or forming broad based policies that can be applied on a vast scale with a mission of developing standard policies and delivery of the services. With rapidly changing and uncertain global economics, the macroeconomics of the regions is