POLS 373 Foundations of
Comparative Politics
Lecture: Why is East Asia Rich?
Part 2, Explanations
Why is East Asia Rich?
The Structural
Perspective
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Why is East Asia Rich?
The Explanations: Structural Perspective
A Basic Observation and Starting Point
• It is a mistake to explain East Asia’s wealth purely or
mainly by focusing on internal or domestic factors,
such as a “developmental state” or a particular type
of culture
• Instead the explanation must be found by
adopting a “global perspective”; we must
consider the “big picture” into which
the East Asian countries fit
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Why is East Asia Rich?
The Explanations: Structural Perspective
A Global Perspective: First Step
• Identify the “big picture”
The big picture of East Asian development is the
capitalism
system of global
________________________.
Struturalists tell us that the system-wide dynamics of
global capitalism are far more determinative of national
economic success than culture, strong states, or a
“rational” domestic economic environment
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Why is East Asia Rich?
The Explanations: Structural Perspective
A Global Perspective: Additional Steps
• Identify the dynamics, logic, and “needs” of global capitalism
• Identify the position and role of the various units (i.e., countries,
such as Japan, South Korea, and Taiwan) in the system as a
whole
• Identify the position and role of the various units in relation to
the dominant unit or units, namely, the United States
• Finally, consider the attributes of individual units (for example,
consider whether the individual units have “strong states”)
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Why is East Asia Rich?
The Explanations: Structural Perspective
World-Systems Theory and East Asian Development
• One structural theory, World-Systems, provides answers to
many of the questions posed on the preceding slide …
Basic logic: Capitalism is driven by the constant need for accumulation and expansion; to
do this, capitalism requires strong centers throughout the globe
Role of Units in System: Hegemon required to police and stabilize system; certain “core”
units are needed to serve as regional centers of capitalism, and each core requires
subordinate units to maximize capital accumulation; these subordinate units are part of
the semi-periphery or periphery
Role of Units in Relation to Dominant Unit: Close relationship to dominant unit (the
hegemon) ensures economic stability and growth; if subordinate units occupy favorable
position in global system, this relationship may be key
Individual (State-level) Attributes: Can play a marginally important role in developmental
path as system occasionally “allows” subordinate units to take advantage of
opportunities for upward mobility
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Why is East Asia Rich?
The Explanations: Structural Perspective
World-Systems Theory and East Asian Development
• Importance of Hegemony
Under certain conditions, the hegemon’s actions allow
otherwise subordinate units to move up: this was the case with
Japan, as the emergence of the Cold War compelled the United
States to build a center of capitalism in Asia
After the “loss” of China, in short, Japan was “selected” by the
United States to be the regional center of capitalism in Asia
The importance of Japan as a regional center of capitalism was
highlighted in Dwight Eisenhower’s famous “falling dominoes”
speech (1954)
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“Falling Dominoes” Speech, Dwight
Eisenhower, April 7, 1954
Q. Robert Richards, Copley Press: Mr. President, would you mind commenting on
the strategic importance of Indochina to the free world? I think there has been,
across the country, some lack of understanding on just what it means to us.
A: You have, of course, both the specific and the general when you talk
about such things. First of all, you have the specific value of a locality in
its production of materials that the world needs. Then you have the
possibility that many human beings pass under a dictatorship that is
inimical to the free world.
Finally, you have broader considerations that might follow what you
would call the "falling domino" principle. You have a row of
dominoes set up, you knock over the first one, and what will happen to
the last one is the certainty that it will go over very quickly. So you could
have a beginning of a disintegration that would have the most profound
influences (…)
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“Falling Dominoes” Speech, Dwight
Eisenhower
[CON’T] Now, with respect to the first one, two of the items from this
particular area that the world uses are tin and tungsten. They are very
important. …. Then with respect to more people passing under this
domination, Asia, after all, has already lost some 450 million of its peoples to
the Communist dictatorship, and we simply can't afford greater losses.
But when we come to the possible sequence of events, the loss of Indochina,
of Burma, of Thailand, of the Peninsula, and Indonesia following, now you
begin to talk about areas that not only multiply the disadvantages that you
would suffer through loss of materials, sources of materials, but now you are
talking really about millions and millions and millions of people.
Finally, the geographical position achieved thereby does many things. It turns
the so-called island defensive chain of Japan, Formosa, of the Philippines
and to the southward; it moves in to threaten Australia and New Zealand. It
takes away, in its economic aspects, that region that Japan must have
as a trading area or Japan, in turn, will have only one place in the world
to go -- that is, toward the Communist areas in order to live.
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Why is East Asia Rich?
The Explanations: Structural Perspective
Key points: Japan’s Economic Rise
•
Japanese postwar development was premised on the need to
establish a strong foundation for capitalism in Asia
•
At first, Japan was not meant to play this role--the original
designee was China--but the communist victory in China gave
Japan a new lease on life
•
The general threat of communism in Asia, moreover, made
Japan an even more important regional center: helps explain
why Japan was given unprecedented and largely onedirectional access to American markets
•
Japan also received military aid from the U.S and guaranteed
protection, which allowed Japan to focus its capital on civilian
goods, thus leading the way toward domination of a wide range
of consumer markets
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Why is East Asia Rich?
The Explanations: Structural Perspective
World-System: South Korea and Taiwan
• Japan’s economic rise also explains the rise of South
Korea and Taiwan
Basic Logic: Just as Japan was “chosen for development,” so
too were South Korea and Taiwan, but they were chosen to
serve the needs and demands of Japanese development first
and foremost
Because both countries also became important bastions of anticommunism in their own right, moreover, they were singled out
by the global hegemon (the U.S.) for even more special
privileges
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Why is East Asia Rich?
The Explanations: Structural Perspective
The Flying Geese Model of Industrial
Development
The dynamics of economic development
in South Korea and Taiwan were different
from Japan’s development
South Korea and Taiwan were selected to serve as
“receptacles” for declining industries in Japan and as
receptacles for Japanese goods
Neither Korea nor Taiwan were the preferred choice,
but they proved to be the most practical choices in
the context of the Cold War
In short, South Korea and Taiwan were
“invited” to develop
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Why is East Asia Rich?
The Explanations: Structural Perspective
World-Systems Theory: Issues and
Questions
•
While very similar in some respects, the economic development of the
three East Asian economies is also very divergent: Does WorldSystems explain this?
•
World-systems may explain why Japan, South Korea and Taiwan were
“chosen” for development, but it does not tell us, except in a very
general manner, how each developed into economic rivals of the United
States in major industrial sectors
•
World-systems cannot easily explain the ability of South Korea and
Taiwan to break free of the product cycle or “flying geese” model
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