Studwell’s thesis is bold, his arguments persuasive, and his style pugnacious. It adds up to a highly readable and important book that should make people. Bill Gates reviews “How Asia Works” by Joe Studwell. How Asia Works. Success and Failure in the World’s Most Dynamic Region. Joe Studwell. A provocative look at what has worked – and what hasn’t – in East.

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Basic land reform ensures maximization of yields per area, reduced food import bills and, in some cases, provided vital forex earnings and created surpluses to drive broad based consumption and investment.

Equally, independent central banks are not appropriate to developing countries until considerable economic progress has been made.

The author provides a context for all the economies which helps us better understand the development policies across these countries less.

His conclusion is that South East Asia will probably never fulfil its potential, and that China might. It is the absence of thorough historical analysis and excessive faith in textbook models that led to incorrect prescriptions and needless misery in parts of Asia, Latin America and Africa.

Korea, Japan and Taiwan from the middling performers Malaysia, Thailand and the complete failures Indonesia and Philippines – this distinction is backed by the speed with which each of these nations were able to bounce back from the Asian crisis and the drivers of the same genuine industrial wogks in north-east Asia against resource wealth in Malaysia.

Tente novamente mais tarde. In Europe, the Industrial Revolution began first with the textile industry, which is a path many countries still take e. By ‘land reform’ he means distributing land equally among farming families, by taking it off the big landowners.

How Asia Works: Success and Failure in the World’s Most Dynamic Region by Joe Studwell

For instance, I think that the theoretical arguments in favour of the “infant industry” argument has more credit amongst economists than most people realise. It’s come a long way from disasters like the Great Leap Forward; China’s modern rush towards development is an acknowledgment of the failures of state-lead growth, and yet even today China has immense state companies that play vital roles in its economy, alongside the countless numbers of worjs companies that use its cheap labor to assemble much of the world’s high technology.


An example was that in the Philippines, aasia the banks were privatized, the big family businesses all had their own banks which would loan money to the family business, which they would just not pay back, leading to the government picking up the cheque.

It’s jod course easy to make fun of this attitude, but it’s actually a valid question: Graduate training, with its growth models and representative agents, still provides a sturdy analytical framework for hoa the problems of development. In Japan, Taiwan and particularly the South Korea, the governments could not avoid dealing with the cronies. You don’t need to agree with everything to admit that we need more thinking like this. This is the foundation that builds a capital base.

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The common metaphor is that tariffs and subsidies are like a ladder used to climb up, to be kicked away when done, but the examples of rich countries that used mercantilist policies to get rich and then later mostly or partially deregulated i. I found my thoughts stirred more by a second, methodological rebuke: There’s a persistent debate among economists: I have visited Japan and ski in South Korea every year. This work cites quite a number of sources and the facts themselves are interesting to know by themselves.

As powerfully demonstrated by Studwell, since procuring their independence, the North East Asian states of China, Korea, Japan and Taiwan have transformed into global economic heavyweights, their South East Asian counterparts such as Thailand, Malaysia, Indonesia and the Philippines have found themselves trapped in a rut of misguided economic policies, myopic developmental visions and misplaced policy prescriptions.


Studwell’s in-depth analysis focuses on three main areas: Don’t let the cronies take control. Developed countries once adopted very protected and heavy-handed economic policies in its industrial infancy. Jan 16, Jacob Hedlund rated it liked it. Of course, since the growth to capital and labor can take you so far, productivity is the secret sauce.

I totally agreed with Studwell about his point of the government decided whether the country would develop or not. I was looking for a book that would explain why northeastern Asian countries [Japan, Taiwan and South Korea] have succeeded and why southeastern countries like Malaysia, Indonesia, Thailand and the Philippines are less successful.

The only drawback is that the book is quite redundant and could better organized. Studwell goes into a great amount of detail on how various countries’ financial sectors either contributed to their paths of development or inhibited them, and the Asian financial crisis of course figures prominently as a warning sign to wtudwell that were on the wrong development path. Studwell does not advocate this as a universal panacea – he points out the problems that South Korea had, and that they were lucky to get away with it – and that the system gets a country to a certain level of development, after which it is necessary to modernise – which may not always work – as in Japan.

Leia mais Leia menos. Trivia About How Asia Works: The key objection against uoe “infant industry” argument is that, given how it has been applied in practice, it has mainly created rents for domestic industries that are protected against international competition, and that these favours tend to be perpetuated at the expense of domestic consumers.