A lot of Asian countries have become promising economic entities while western countries try so hard to deal with financial deficits and sovereignty debts. This scenario therefore addresses to a question regarding the differences of economic development between Asian and western countries.

A lot of Asian countries have become promising economic entities while western countries try so hard to deal with financial deficits and sovereignty debts. This scenario therefore addresses to a question regarding the differences of economic development between Asian and western countries.

How did Asian countries’ economic development take off? Take the “four dragons”, also known as newly industrializing countries (NICs), and China as examples, state governments play an important role leading the direction of industrial policies based on national developing crafts.

Under strong state control, the four dragons: Singapore, Hong Kong, Taiwan, and South Korea, disparately focused their competitive industries in the world market. The import-substituted and export-oriented model strongly supported by states created an economic miracle, accumulating a bunch of foreign capitals.

Unlike countries following democratic system, these nations survived from Asian financial crisis due to autocratic governance. Even though Singapore, Taiwan, and South Korea transferred into democratic regimes afterwards, state industrial policies and central control remain as essential factors leading them to overcome the economic challenges.

Nowadays China is deemed as bigger scope of NICs experience. The power shifting from central planning to provinces and private industries definitely helped boosting its economic growth. However, the monitoring and surveillance power has still been concentrated in the central government and relative small amount of political elites.

Such a rapid economic growth must be accompanied with certain social issues. Within the nation, China also encountered various domestic problems, such as the increasing rich-poor gap and corruptions. Nevertheless, in terms of the performance of development, China has been successful with their central policy-making scheme.

In the past few years, European countries have been trapped with the sovereign debt crisis and the U.S. has been undergoing the economic downturn. People inevitably started re-evaluating the effectiveness of NICs and China’s experience.

It’s still difficult to judge whether their experience serves the best solution to defeat the economic recession. Yet, they offered some lessons.

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