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Titleasian miracle.PDF
TagsFour Asian Tigers Economic Growth Macroeconomics Economics Economies
File Size31.5 MB
Total Pages402
Document Text Contents
Page 1

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Page 2

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Page 201

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dictators, uscd their authority to musde businessmen, workers, and bu-
reaucrats into a single-mLinded pursuit of development. This chapter of-
fers a different interpretation. Leaders need the active cooperation of
their peoplc to stimulate and sustain growth. Heavy-handed treatment
might subjugate the ruled, but it would also increase the perceived risk
of exprpriation, driving away capital. Lack of capital would slow
growth, in turn driving away skilled workers and entrepreneurs. Thus,
even authoritarian leaders cannot rely on coercion alone Rather, all
leaders need a strategy that will induce people to participate willingly in
growth. Whether by design or accident, the leaders of the HPAEs have to
various degrees devised mechanisms thar effectively deliver the promise
of shared growth.

Although policies to promote growth are generally well known, they
tend to be either difficulr to initiate and/or to sustain over time. Growth
makes those at the top of the economic pyramid uncertain about the fiu-
ntre of their wealth. It introduces changes that are likely to open avenues
for fellow elites and new competitors to contest control of their e-
nomic fiefdoms Elite groups therefore generally find it in their interest
to try and maintain the status quo unless they are assured that they will
benefit from rapid growth. Furthermore, the initial stages of growth
often require that the general population make sacrifices. Hence, even if
growh can be initiated it may be interrupted by social and political un-
res; unless its fruits are shard by the non-elites.

The task of initiating and susmining growth thus presents a very dif-
ficult coordination problem. Lcaders must persuade elire groups ro share
the growth dividend. They must demonstrate to non-elites thar part of
the dividend will indeed accrue to them. Governments must create
acedible means to persuade everyone that their plans are nor all rhetoric.
The governments in the HPAEs all established mechanisms that opera-
rionalized te princple of shared growth. The NE in Malaysia, deliber-
ation councils in Japan, public housing in Hong Kong and Singapore,
and small enterprise promotion in Korea and Taiwan, China-all
helped to demonstate the reality of shared growth.

Finally, govemments must foster the conditions in which the bureau-
cracy, or at least a dedicated technocratic core, can design and implement
effective policies. To varing degrees, and with a variety of mechanisms,
the HPAEs have performed these tasks unusually welL In the next two
chapters, we examine the policies:and instruments that HrAE govern-
ments used in their effort to rialize the promise of shared growth.

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Page 401

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