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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Thanks for telling us about the problem. Japan, South Korea, Taiwan, and most recently mainland China have grown rich by fo The rise of the east Asian economies, and the lifting of their six hundred million out of grinding poverty, is the central fact of the past hundred years.
James Fallows’ China Airborne had a lot to say about the development of the Chinese aviation market, which bears directly on many points raised here about the manufacturing sector and its role as a driver of acceptance of international business standards. Lists with Moe Book.
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This is not what Chinese people want. The author has clearly segregated the successes S. The picked losers and destroyed them.
Aug 04, Bouke rated it it was amazing Shelves: Through careful historical analysis, the author has clearly disproved the myths propagated by experts on both sides of the left-right divide regarding the drivers of economic success. Studwell argues forcefully in favour of land reform, jeo at least partly because it was necessary to stop spreading communism.
Oct 30, Matias Sulzberger rated it really liked it.
This has the cost of artificially stunting consumption, as well as perennial demands from the IMF for financial deregulation and floating exchange rates, but as long as a country’s leadership is not too dominated by a few families, as it was in places like the Philippines, it should be able to use the tools of modern international finance to finally compete on a level playing field with rich Western countries.
Recipe for development success: This policy should also be supported with subsidized fertilizer, education, etc. A common pitfall for countries is to simply ask foreign companies to set up shop with some branch plants in their country and raise their living standards that way. Instead of suggesting a full-fledged and massive financial and industrial deregulation, Studwell painstakingly demonstrates that an initially protectionist policy that grants subsidies to manufacturers, makes available finance at low or even negative interest rates, but and this is a capital BUT indispensable and incontrovertible export targets would lead to a rise in the manufacturing sector as was the stellar case with South Korea and the former General Park Chung Hee.
The most important thing for countries to do, as shown by the examples of Japan and South Korea, are to focus on exporting manufactured goods which can be traded as opposed to cultivating service industries which can’t, and then promote export discipline by not allowing domestic firms to get lazy.
A lot of it is tough to get through, there is a lot of statistics and so many different players in the game that it is sometimes difficult to keep everything straight. This will lead to a surplus in yields, which will lead to profits for the families, which they can then re-invest in their farms or use to improve their own living conditions. Studwell’s book defies any ideological classification, and that makes it really great and challenging.
However, it’s important not to gloss over the failures of heavy state involvement in industry. While land redistribution and the instigation of widespread household farming does not by itself guarantee success, failure to bring the masses into the formal economy means both that fewer people make the jump from “starving miserably” to “just getting by” and that power remains concentrated among very few hands. Although not a policy prescription in the strictest and narrowest interpretations of the term, the book is certainly an eye opener for policy mavens, ‘the know-it-all’ economist and the eager entrepreneur trying to embellish the prospects of a developing economy.
By ‘land reform’ he means distributing land equally among farming families, by taking it off the big landowners. Harsha Varma This is an easy read with very little jargon.
Example, in the automative industry, several firms existed in South Korea, but one by one all of them either perished or absorbed by Hyundai-Kia, the fifth biggest automaker nowadays. While these do not provide significant learning and are based on cost arbitrage, they do generate surpluses and forex reserves to finance long term investments and technology acquisition and generate much needed employment.
As someone who is very familiar with Asia-I lived in Japan and frequently travel to the region for work, I must say that Studwell displayed amazing knowledge of history and culture, and wove that nicely with economics.
Oct 11, Venky rated it it was amazing Shelves: Nov 10, Nazri Awang rated it really hpw it. Korea, Japan and Taiwan from the middling performers Malaysia, Thailand and the complete failures Indonesia and Philippines – this distinction Studwell’s book is a coherent, well-reasoned primer on the causes of economic growth and lack thereof in east Asia.
In Japan, Taiwan and particularly the South Korea, the governments could not avoid dealing with the cronies. The first is stylistic.
How Asia Works: Success and Failure in the World’s Most Dynamic Region by Joe Studwell
Joe Studwell has spent two decades as a repor In the s and s many in the West came to believe in the myth of an East-Asian economic miracle. Oct 20, Cyrus Samii rated it really liked it. In both cases, historical experience cries out against against a reductive theory, shorn of political context.
The standard neoclassical story taught in graduate macro if taught at all is that the east Asian economies grew out of poverty by rapidly accumulating capital, moving labor from farms to factories, and funding all of this through unusually high rates of saving.
How Asia Works: Success and Failure in the World’s Most Dynamic Region
But, left bare, a framework is just a skeleton. Additionally, the increased number of household farmers looking to sell crops will need things like pickup trucks, motorcycles, or motorized bicycles, spurring the growth of companies like Honda who got their start by building just such vehicles. These interwoven stories were, at times, difficult to follow – but I could have put more effort into following along.
I have read this book following the positive Twitter review by Noah Smith https: Interesting to contrast with later orientation to protect primarily monopoly rents under the guise of protecting property rights. Studwells mentions that how coys like Hyundai and Suzukis developed- these are now selling cars to us! I bought this book on the recommendation of the Marginal Revolution blog.
It all strikes me as valid and making a lot of sense. In Malaysia they liberalized the financial system and IPOd companies prematurely, leading to huge stock market bubbles on unproductive companies. The author points out that basically every industrialized country did so through protectionism, including Germany, USA, and the UK.
This work cites quite a number of sources and the facts themselves are interesting to know by themselves. His repetition of “export-led” may be droning at times, but it does drive the point home that developing a manufacturing-driven economy is the crux of success, and it makes one wonder if this recipe can be replicated in different regions in the world.
I picked up this book to understand how the relatively isolated Chinese economy became the powerhouse it is today. Detalhes do produto Formato: After reading it, I felt I am an economist, or at least Agricultural economist! The main reason is that it is difficult to oversee the way in which funds from bond and stock issues are used.