Comparative Regional Economy <Lecture Note 1> 13.09.05
CRE: Introduction, Concepts,
Approaches, and Basic Facts
* Some parts of this note are summary of the references for teaching purpose only.
Semester: fall 2013
Time: Thursday 9:00-12:00 am
Class Room: 114
Professor: Yoo Soo Hong
Office Hour: By appointment
Mobile: 010-4001-8060
E-mail: yshong123@gmail.com
1
Introduction
 Purpose of the Study
− Course definition: Study of world regional economies in
comparative perspective
− Multi-facet comparative study of regions in the world economy
− Drive implications for strategies of competitiveness, development
and geopolitics
− Understand the relationship between regionalism and globalism
 Approach to the Subject (Eclectic Method)
−
−
−
−
International political economy
New comparative economics
New economics of geography
Theories, empirical studies, case analysis, etc.
2
Geographic Levels of Earth
•
Global
– The whole Earth
•
Major World regions
– Whole or large parts of continents and the
division used in this text for the regional
chapters
•
Countries
– The building blocks of major world regions
•
Local regions
– Parts of countries and the places where many
individuals voice their concerns
3
Geography
 Geography is study of
•
Where and how human and natural feature and events (political,
economic, cultural, and environmental) are distributed on Earth’s surface,
the relationships among them, how their distributions change over time,
and how those features and relationships affect human lives.
•
The tensions among globalization, localization, and the continuing
significance of country governments provide a basis changes and move
toward either greater interdependence or conflict.
•
Thus, geographers compare places and assess the interactions among
them at different levels of geographic scale.
4
Regions and Globalization
•
Regions are defined by
– A high degree of uniformity
– Limited variability
– More-or-less lasting boundaries
•
Regional boundaries may include physical features, political
boundaries, or economic characteristics.
•
Regions are also dynamic geographic entities that have distinctive
internal and external flow patterns of such phenomena as people,
goods, and ideas.
•
Nodes are key features of regions, being specific places from which
flows begin or through which of a set of nodes may define the
boundary of a region.
5
Development of World Regions
•
Early history (about 5000 B.C)
•
Settle farming
•
City-state and empires (2500-1000 B.C.)
•
Trading empires and earlier civilizations (1000 B.C.- A.D.600)
•
Disruptions, migrations, and feudalism (A.D. 600 - 1450)
•
Modernization
– Explorations and colonies ( around A.D. 1450)
– Industrialization (1700s)
– Imperialism and expansion (1450- early 1800s)
6
Concept: Realms and Regions
 Realm
- The largest geographic units into which the inhabited world can be divided
• Based on both physical (natural) and human (cultural) characteristics
• The smallest scale of commonality
- The result of the interaction between human societies and natural
environments:
• A functional interaction
- Represent the most comprehensive and encompassing definition of the
great clusters of humankind
- Geographic realms change over time:
• Russia (disintegration of the former Soviet Union)
• European integration
7
Realms of the World
8
 Regions
– Areas of the earth’s surface marked by certain properties.
– Based on an established criteria:
• Human (cultural) properties
• Historical identity
• Physical (natural) / locational characteristics
– All regions have:
• Area
• Boundaries
• Location
 Formal region
– Marked by a certain degree of homogeneity in one or more phenomena
– Also called a uniform region or homogeneous region
9
 Functional region
– A region marked less by its sameness than its dynamic internal
structure.
– A spatial system focused on a central core
– A region formed by a set of places and their functional integration
– Also called a “nodal” region
 Physical Geography
– The study of physical processes and characteristics in space such as:
– Continental drift
– Pacific Ring of fire
– Weathering:
• Decay and breakup of rocks on the earth's surface by natural
chemical and mechanical processes.
– Erosion:
• The wearing away of land or soil by the action of wind, water, or ice.
10
Structure and Drift of Earth Surface
11
World Seismic and Volcanic Activity
12
Cultures and Population
 Culture
– Shared patterns of learned behavior
– Components:
• Beliefs
• Institutions
• Technology
 Cultural geography
– Spatial aspects of human cultures
– Major components focus on:
• Cultural Landscapes
• Culture Hearths (Centers)
• Cultural Diffusion
• Cultural Environments
• Cultural Regions
13
 Cultural landscape
– The composite of human imprints on the earth’s surface
– Take many shapes:
• Agricultural tenure
• Organization of cities
• Architecture
 Cultural hearths
– The source areas from which radiated ideas, innovations, and
ideologies that changed the world beyond
 Cultural diffusion
– Process during which a culture / religion spread to new areas
14
Core Cultural Hearths of Humanity
15
Diffusion of Major Religions in Pacific Asia
Hinduism (4,000 B.C.)
Buddhism (563 B.C.)
Shinto
Traditional Chinese
Islam (571 A.D.)
Christianity (1510 A.D.)
Christian presence
16
 Population distribution
– Linked with agricultural potential
– 4 major clusters:
• East Asia
• South Asia
• Europe
• Eastern North America
17
World Population
18
States
 Political geography
– The study of the interaction of geographical area and political processes
– The spatial analysis of political phenomena (e.g. voting) and processes
 State
– A politically organized territory
– Administered by a sovereign government
– Recognized by the international community
– A state must also contain:
• A permanent resident population
• An organized economy
• A functioning internal circulation system
19
 Nation
– All the citizens of a state (legal definition)
– Group of people with a strong linguistic, ethnic, religious and cultural
commonality.
 Nation-state
– A country whose population possesses a substantial degree of cultural
homogeneity and unity
20
Development
 Economic geography
– The study of economic activities in space
– Particularly concerned about production and consumption
 Economic conditions
– Significant variations in income
– Developed and developing countries
– From low to high-Income
 Globalization
– A complex and highly dynamic process
– New industrial regions and global production
– International trade and new markets
– Three main poles of the global economy
21
Three Poles of the Global Economy
Western Europe
North America
East Asia
Economies
Underdeveloped
Developing
Newly Industrializing
Advanced
Oil Export / Rent
22
Classifications of Regions: Conceptual Approach
 Spatial tradition
– The spatial tradition emphasizes the use of quantitative methods in
geographic research.
– Places are studied in terms of their spatial attributes, namely location,
position and geometry.
 Area studies tradition
– Area studies tradition (also called as regional geography) divides the
world into smaller units based on their dominant features or
characteristics.
– These units (i.e. region or area) are often subdivided into four static
typologies, namely formal (also called as uniform), functional (also
called as nodal), administrative and perceptual region.
23
 Man-land tradition
– Man-land tradition entails a focus upon the relationship and interactions
between societies and natural environments, i.e. how people activities
are affected and controlled by the physical environment and vice versa.
– Relevant concepts are those describing some specific land use pattern,
i.e. a region, which is uniform from the perspective of some specific type
of a land use.
 Earth science tradition
– The earth science tradition lays the focus fully on the physical
environment, i.e. the waters of the earth, landforms, vegetation, soils,
topography, etc.
– These categories can be distinguished either under the concept of
“natural feature”, “functional area” or “formal area”.
24
Classifications of World Regions: Geographic/
Economic Approach
 Classification by location
• Asia
– East Asia
– Northeast Asia
– Southeast Asia
– South Asia
– Central Asia
• Middle East
25
• Europe
– North Europe
– South Europe
– Central Europe
– Eastern Europe
• Africa
– North Africa
– Sub-Saharan Africa
• America
– North America
– Latin America
– Caribbean (Middle America)
– South America
• Oceania
26
 Classification by Income Level (World Bank)
① Low-income economies (<$975)
② Middle-income economies ($976-$3,855)
③ Lower and upper-middle-income economies (divided at $3,856)
④ High-income economies (>$11,906)
27
New Economics of Geography
 Concept
− New Economics of Geography is the study of location, distribution and spatial
organization of economic activities across the earth.
− New Economics of geography is usually regarded as a subfiled of the
discipline of geography, although recently economists such as Paul Krugman
and Jeffrey Sachs have pursued interests that can be considered part of
economic geography
− Krugman applied spatial thinking to international trade theory, which is called
the new economic geography. The name geographical economics has been
suggested as an alternative.
28
 Focal Areas
− Location of industries
− Economies of agglomeration
− Transportation
− International trade and development
− Ethnic economies
− Core-periphery theory
− The relationship between the environment and economy
− Culture-environment interaction
− Globalization
29
Political Economy
 What Is Political Economy?
− Political economy is the study of the interaction of the market and political
process.
 Nature of Political Economy
− Markets are embedded in larger sociopolitical systems: The government,
powerful domestic interests, and historical experiences determine the purpose
of the economy and establish the parameters within which the market
functions
− Contrary to traditional economists’ assumption that economic activities are
universal in character and the same everywhere, the specific goals of
economic activities are in actuality socially determined and differ widely over
the world.
30
 Essential Feature
− Political economy focuses on the understanding of how markets work and
how market forces affect economic outcomes as well as an
understanding of how powerful actors such as the nation-state attempt to
manipulate market forces to advance their private interests.
− The study of political economy and international political economy
requires and analytical approach that takes into account economics,
political science, and other social sciences.
− It must incorporate the many economic, political, and technological
factors that determine or influence the nature and dynamics of the
international economy.
31
International Political Economy
 What Is International Political Economy (IPE)?
− International political economy is an analytical effort to break down the
barriers that separate and isolate the disciplines of politics, economics,
and sociology and their methods of analysis, seeking a comprehensive
understanding of mainly international issues and events.
− IPE employs elements of economics, politics, and sociology to describe
and explain international and global problems and issues in a way that
cannot adequately be addressed by each of those disciplines alone.
32
 The Essence of IPE
- IPE is international in scope, meaning that it deals with issues that cross
national borders and with relations between and among nation-states.
Increasingly today, people talk about a global political economy because
more and more problems and issues affect the whole world, not just a
few nations, and require a universal perspective and understanding.
- IPE involves a political dimension in that it usually focuses on the use of
state power to make decisions about who gets what, when, and how in a
society.
• Politics is a process of collective choice, drawing in competing and often
conflicting interests and values of different actors, including individuals,
nation-states on a bilateral and multilateral basis, conflicts between
states
and
international
organizations,
regional
alliances,
nongovernmental organizations and transnational corporations.
33
- IPE is about the economy or economics, which means that it deals with
how scarce resources are allocated for different uses and distributed
among individuals, groups, and nation-states through the market
process, which is sometimes decentralized and other times quite
centralized or controlled by state officials.
• Economic analysis focuses less on issues of state power and national
interests and more on issues of income, wealth, and individual interests.
- IPE attempts to understand the complex interaction of real people in the
real world, along with their attitudes, emotions, and beliefs.
• The social forces associated with class, ethnic, religious, and other
cultural groups, along with their different beliefs and values, must also be
considered in the IPE analytical formula. Likewise, the state, economy,
and society are also affected by the historical development of important
events and issues.
34
 Why Study International Political Economy?
− (Important) IPE is crucial in today’s world, in which events and conditions
in one part can strongly affect conditions in other parts, that we analyze
these conditions so as to understand what caused them and how they
might be managed.
− (Useful) In a global political economy and society in which so many
things influence and affect one another, employers and government
officials seek out those who can understand the international and global
context of human activity.
− (Interesting) IPE is all about life and the many actions and interactions
that connect human beings around the globe.
35
Analytical Building Blocks:
States, Markets, and Societies
− Much of the study of IPE focuses on the interaction of three highly
important institutions - states, markets, and societies - and how their
relationship to one another affects the behavior of a variety of different
actors.
 The State
− The state is a legal entity, or a relatively coherent and autonomous
system of institutions that governs for a specific geographic territory and
population.
− Since the mid-seventeenth century, the state has become the dominant
actor in the international community, based on the principle that it has the
authority to exercise sovereignty over its own affairs.
36
 The Market
− People associate the market with the institutions of modern capitalism, for
selling and purchasing, manufacturing and service industries, firms, large
banks and so on.
− A market can represent a geographic location where goods and services
are exchanged. However, what defines a market is not the Physical
characteristic but its function as the institution for exchange of goods and
services.
− Under pure market conditions (the absence of state intervention or social
influences), people are assumed to behave rationally. They will naturally
seek to maximized their gains and limit losses by producing and
exchanging things. This desire to exchange is a strong motive behind
their behavior, along with pressure to generate wealth by competing with
others for sales in local and international markets.
− A value many people strongly hold that is reflected in market activity is
economic efficiency, the ability to use and distribute resources effectively
and with little waste.
37
− Markets exist within some form of political arrangement or bargain whereby
states or some other form of political unit helps maintain their existence and
ultimately decides their primary function.
− In “mixed economies”, then-such as the US and England, among othersmarket forces influence a great many resource allocation and distribution
decisions, but not all of them. In many nations, people prefer more state
control or regulation over market activity in an effort to guide outcomes in
directions that favor certain people or groups.
− In “command (planned) economies” such as the former Soviet Union before
1989, the state tried to make nearly all allocation and distribution choices
based on the leadership’s notion of society’s and the national interest. Many
critics of socialist societies point out that the state overregulated the
economy, resulting in huge inefficiencies when it came to the production of
goods and services and to the over-bureaucratization of the state.
38
− Since the end of Cold War, a number of former Soviet-bloc countries in
Eastern Europe and elsewhere have been undergoing a transformation
whereby markets play a decidedly bigger role in deciding economic
policies.
− In many cases, such as with some of developing countries and also
China, shifting to a market economy and to a democratic government that
will supposedly limit the state’s role in the economy is not an easy
process.
 Society
− Society adds another element of tension to the state, market, and
society mix, because different societal groups usually want to preserve
and promote the history, culture, and values of their social system.
39
− There are usually many different social groups within a state, such as tribes,
clans, and ethnic or other types of communities whose borders often cut
across national boundaries.
− In an age of increasingly growing globalization, market systems link people
and their different values and interests with one another when they make
products better, cheaper, or more attractive to people in other nations.
Relatively unregulated markets can perform a social “coordinating without a
coordinator” function, whereas, in more authoritarian systems, markets serve
as a “cruel and harsh coordinator.”
− The standards used to judge the effectiveness or efficiency of markets and
market systems always reflect the dominant ideas about society’s values and
beliefs. Markets are a force but not one that is easily separated from social
and political forces that give them purpose and provide them with different
functions.
40
− What should be the proper balance among the state, society, and the
economy? There is no set formula for all nation-states nor for their
societies.
− What is interesting are the patterns of interaction between the state,
society, and markets that change over time and that shape local, national,
and international institutions as well as individual behavior patterns in
dynamic ways.
− At times, the market may dominate more than the state or society,
resulting in a shifting configuration of group and actor interests and values.
This seems to have been the pattern of the 1990s when globalization
became so prevalent.
41
 Nature of Political Economy
- Because states, markets and society embrace different basic values and
prefer to work in different ways to achieve different ends, sharp tensions
and conflicts often result within and between different nation-states and
their societies.
- Most people live simultaneously in a state that exhibits certain types of
political institutions, national market arrangements and a distinct social
system that differs from other nation-states that have their own political,
market and social arrangements and institutions.
- How well the collective choices of the state reflect the general will and
the public interest depends on a large number of factors, such as voting
rights, rules about representation, and the nature of political institutions
in a country.
42
 Four Global Structures
− (The Security Structure) When one person, state, or international
organization contributes to or provides security for states and other
organizations, a security network is created. The nature of this security
structure depends on the kind of bargain that is struck among its
participants.
− (The Production and Trade Structure) Producing things is one element
of generating value and wealth, and wealth is nearly always linked to
power. The issue of who produces what for whom on what terms,
therefore, lies at the heart of international political economy. Structural
changes affect trade and the distribution of wealth and power in the world
and the other IPE structures.
− (The Finance and Monetary Structure) One way to describe the finance
and monetary structure is to say that it is the pattern of money flows
among nations. This structure is, then, really a description of how certain
resources are allocated and distributed between and among nations.
Financial bargains create obligations, which join the interests of different
nations.
43
− (The Knowledge and Technology Structure) Who has knowledge and
how it is used is an important factor in IPE. Nations with poor access to
knowledge in the form of industrial technology, scientific discoveries,
medical procedures, or instant communications, for example, find
themselves at a disadvantage relative to others. Increasingly, the
bargains made in the security, production and trade, and finance and
monetary structures depend on access to knowledge in its several forms.
− These four IPE structures form the international system within the
interdependent relations of individuals and states occur. The international
systems composed of a set of interactions and relationships that condition
how states and individuals behave and determine in multi-dimension.
44
Evolution of Global GDP and Per Capita GDP
45
Growth of the World Population and Some Major
Events in the History of Technology-9,000 B.C. to
Present
46
World Key Data
Year
Latest data
GDP (current US$) (billions)
2011
69,982
GNI per capita, Atlas method (current US$)
2011
9,511
Life expectancy at birth, total (years)
2010
69.63
Population, total (millions)
2011
6,973
Population growth (annual %)
2011
1.15
School enrollment, primary (% net)
2011
88.8
Surface area (sq. km) (thousands)
2010
134,269.2
Source: World Bank database
47
Regional Share of World Income, 2010
- Comparing incomes: The share of developing economies is higher when measured using purchasing
power parity
Source: World Bank, World Development indicators database
48
Division
Global GDP is concentrated in
a few world regions, 2006
The number of borders between
nations tripled in the past 50
years
Source: World Development Report 2009 (World Bank 2007;Stinnett and others 2002).
49
World Economic Development Status
 The Classification of Developing Countries
⁻
Classification of less developing countries by UN: ① Least developed, ②
Non-oil-producing developing countries, ③ OPEC members
⁻
Classification of countries by WB (2008): ① Low-income economies
(</=$975),② Lower middle-income countries ($976-$3,855), ③ Upper-middleincome countries (3,856-11,905), ④ High-income countries (>/=$11,906)
 Present Status
⁻
80 percent of the world population live in developing countries.
⁻
The rate of the population in the absolute poverty (e.g. <$1/1.25 per day) is
highest in South Africa below the Sahara Desert and second highest in Latin
America.
⁻
The number of the population in the absolute poverty is highest in South-West
Asia.
50
Regional Poverty Estimates
Poverty headcount ratio at $2 a day (PPP) (% of population)
Source: World Bank.
51
Poverty Change by Region
Proportion of people living on less than $1.25 a day, 1990 and 2005 (%)
Source: Millennium Development Goals Report. 2011
52
Structure of the World Economy (2007)
Range of
GNI
GNI
per capita
($)
Population
(%)
GDP
(%)
Trade
(%)
Trade/GDP
High
income
Over
$11,456
$37,570
15.9
73.9
72.8
56.4
Middle
income
$936~
$3,705
$2,190
64.4
24.5
26.5
61.9
Low
Income
Less than
$935
$574
19.6
1.4
1.65
63.7
100.0
World
$7,995
(6.6 billion
person)
100.0
100.0
($54.3trillion)
($31.1trillion)
Korea
$19,730
0.7
1.7
2.5
(%)
57.3
82.3
Source: World Bank. World Development Indicators. 2009.
53
Frequency of High and Low Growth of Per Capita
Output, 2008–2012
54
Economic Growth: Performance Variations within
Regionsa
.
1950-1973
1973-1990
1990-1998
1998-2006
OECD
1.5
1.2
1.2
1.1
141 countries
1.8
2.6
3.4
3.2
Developing countriesb
1.7
2.6
3.4
3.2
Latin America
1.4
1.5
2.2
2.0
Asia-Pacific and East
Asia
1.6
2.1
4.2
2.9
South Asia
0.8
1.4
1.9
1.4
Africa
1.6
2.1
3.4
3.2
Middle East
2.2
4.3
4.0
4.8
Notes: a Standard deviation of per capita GDP growth in each region, in 1990 PPP (purchasing power parity) dollars
b The 141 countries minus Japan and the Republic of Korea.
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of A. Maddison,
Contours of the World Economy 1-2030 AD: Essays in Macro-Economic History; Oxford, Oxford University
Press, 2007
55
Focal Study Areas in This Course
 Geography and Resources
− Identifying geographic characteristics of world regions together with the
distribution of natural and human resources
 Institutions and Politics
− Political characteristics of major countries in each region and international
relations
 Economic Management, Industry and Business
− Review of economies and industries of major countries in the regional
context
 Culture and Society
− Cultural and societal characteristics in relation to the economy of each
region
 History: from Past to Future
− Review of historical aspects and prospects of the future of each region
56
Example of CRE: Differences and Commonalities in
Development
 Some Views
- The range of human development in the world is vast and uneven, with
astounding progress in some areas amidst stagnation and dismal decline in
others.
− UNDP. Human Development Report. 2003
- Of course there must be differences between developing countries…[but] to
maintain that no common ground exists is to make any discussion outside or
across the frontiers of a single country meaningless.
− Julian West. Oxford University
- Rates of growth of real per capita GNP are diverse, even over sustained
periods…Is there some action a government of India could take that would lead
the Indian economy to grow…? If so, what, exactly? The consequences for
human welfare involved in questions like these are simply staggering: Once one
starts to think about them, it is hard to think about anything else.
− Robert Lucas. Nobel Laureate in Economics
57
-
The growth position of the less developed countries today is significantly
different in many respects from that of the presently developed countries on the
eve of their entry into modern economic growth.
− Simon Kuznets. Nobel Laureate in Economics
 Differences and Development
-
While almost all of these countries are relatively poor in money terms, they
are diverse in culture, economic conditions, and social and political
structures.
-
Large size entails complex problems of national cohesion and
administration while offering the benefits of large markets, a wide range of
resources, and economic diversity.
-
Small countries may have problems including limited markets, shortages of
skills, scarce physical resources, and weak bargaining power but strong
incentives for exports of manufactured goods.
58
 Structural Diversity of DCs
1. The size of the country (geographic area, population, and income)
2. Its historical and colonial background
3. Its endowments of physical and human resources
4. Its ethnic and religious composition
5. The relative importance of its public and private sectors and civil society
6. The nature of its industrial structure
7. Its degree of dependence on external economic and political forces
8. The distribution of power in the nation, its social and political structures,
and the underlying institutions or economic ‘rules of the game.’
59
 Common Characteristics of DCs
1. Low relative levels and, in many countries, slow growth rates of national
income
2. Low levels and, in many countries, stagnating rates of real income per
capita growth
3. Highly skewed patterns of income distribution, with the top 20% of the
population receiving 5 to 10 times as much income as the bottom 40%
4. Consequently, great masses of developing country populations suffering
from absolute poverty, with up to 1.3 billion people living on subsistence
incomes of less than $370 per year at purchasing power parity
5. Large segments of the populations suffering from ill health, malnutrition,
and debilitating diseases, with infant mortality rates running as high as 10
times or more those in developed nations
6. In education, low levels of literacy, significant school dropout rates, and
inadequate and often irrelevant educational curricula and facilities
60
The Dispersion of Per Capita Output Growth Rates in the
Developing World
− The standard deviation of per capita output in the developing world in the
1990-2006 period was practically double that of the 1950-1973. This
development was particularly marked in the Middle East, Africa and the
Pacific and East Asia, less so in Latin America and the Caribbean and
South Asia.
− The cumulative effect of performance differences between gainer and loser
countries is made apparent by the growing disparities in per capita output
between different countries and regions of the developing world. Indeed, the
total disparity for all developing countries rose progressively from 0.24 in
1960 to 0.27 in 1980 and 0.31 in 2000 (United Nations, 2006)
61
Income Gap between High-income Countries and the
Rest of the World
62
Growth Rate of GDP per capita, by Level of
Development, 2000-2012
63
Growth Trends in World Output (%)
Source: IMF. 2011
64
GDP Growth of Main Countries and Regions
Source: IMF, World Economic Outlook Database
East Asia including 18 countries/regions: Japan, China, Korea, Hong Kong, Taiwan,
ASEAN10, Australia, New Zealand, India
65
Divergence in Economic Performance in
Developing Country Regions, 1960-2006
66
Northeast, Southeast, and South Asia have been
Catching Up to Developed Nations
Average annual growth rates of GDP per capita, 1960–2006
Source: World Development Report 2009.
67
Capital Restrictions
Highest in Africa, South Asia, and Central Asia
Source: World Development Report 2009 (Chinn and Ito 2006).
68
Trends in World Population
Note: Data after 2005 are based on projections.
Source: UN Population Division, 2005
69
Density
The Size of Urban Settlements Grows with Development
Source: World Development Report 2009 (World Bank 2007).
70
Comparison of Political Economy
China
Political
leadership
State-market
relationship
FDI
International relations
• One socialist party
(President)
Korea
• Democratic multi-party
(President)
Japan
• Democratic, conservative
parties (Prime Minister)
• Private sector leading
• No planning
• PPP (Concesus making)
• Zaibatsu-SME
cooperation
• Transition to a market
system
• Private-sector leading
• No planning
• Actively hosting
• Passive
• Passive
• ‘Factory of the world’
• G2: Rising to a
superpower?
• The only divided country
• G20: Bridging the developed and developing
world?
• Active FTAs (K-US FTA,
K- EU FTA)
• G7
• Active ODA contribution
• ‘ASEAN+6’ idea
• Turning to Asia?
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Comparison
South East Asia
North East Asia
• resource-rich countries
• colonial experience under European countries
• diversity of nations and religions
• relatively high portion of agricultural sector
• resource-poor countries
• Japanese colonialism
• the Cold War environment
• successful land reform
Development
Process
• industrialization
• early liberalization & market-friendly
• industrialization
• GOV’T intervention
Capital
Accumulation
• high-savings & high-investments
• attracting high foreign investment
• high-savings & high-investments
• forming domestic capital
• export-oriented
• export-oriented
• high dependence on external factors
• MNC-centered Mass-producing system
• less development of the technology
• high dependence on external factors
• indigenous enterprise (e.g., conglomerate)
centered mass-producing system
• higher development of the technology
Initial
Condition
Market
outcome
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Reflection on the Approach
 To understand a region, two dimensions should be considered: time and
space (namely, history and domain). Further, two actors : nature and human
beings.
 Jered Diamond’s Guns, Germs, and Steel (1997) is a good reference for
this purpose. The documentary series, “Global Documentary Humankind,
our Story” (KBS, 2013) is also very good.
 Fundamentally we are concerned with development. What is development?
What are the factors for development and underdevelopment for a region
(or a society or a country)? Further, what are relations between or among
regions?
 We need a multi-dimensional approach.
 Can the world be eventually a true “Global Village”?
 Which country or region is most important, in what sense?
 Which country or region I like best, why?
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References
* Video. ‘Humankinds: The Story of Us” .
Balaam, David N. Michael Veseth. 2008. Introduction to International
Political Economy (4th Ed.) Pearon.
Coe, Neil M. et al. 2007. Economic Geography: A Contemporary Introduction.
Blackwell.
Commission on Growth and Development. 2008. Growth Report:
Strategies for Sustainable Growth and Inclusive Development.
World Bank. (Uploaded at the Homepage in PDF form. Required.)
Diamond, Jared. 1998. Guns, Germs, and Steel.
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Hanson, Philip. 2007. “The Tasks Ahead in Comparative Economic
Studies: What Should We Be Comparing?”. Japanese Journal of
Comparative Economics.
IMF. 2011. World Economic Outlook.
Rodrigue ，Jean Paul. World Regional Geography. Je Maintiendray.
UN. 2011. World Economic Situation and Progress 2012.
UNDP. (20th Anniversary Edition.) 2010. Human Development
Report 2010: The Real Wealth of Nations: Pathways to Human
Development.
World Bank. 2009, 2010, 2011. World Development Report 2010, 2011.
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Useful Reference Sites
(e)Atlas of Global Development
(http://issuu.com/world Bank.publications/docs/978082138538)
 Economics: A Guide to Selected Resources
(http://www.nichols.edu/commoncontent/library/economics.pdf)
 StatPlanet (http://www.sacmeq.org/statplanet)
 Geo (http://geo.worldbank.org)
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