1 POLS 373 Foundations of Comparative Politics Lecture: Why is East Asia Rich? Part 2, Explanations...

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POLS 373 Foundations of Comparative Politics

POLS 373 Foundations of Comparative Politics

Lecture: Why is East Asia Rich?Part 2, Explanations

Lecture: Why is East Asia Rich?Part 2, Explanations

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Why is East Asia Rich?Why is East Asia Rich?

The Rational Choice

Perspective

The Rational Choice

Perspective

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Rational Choice Perspective

What’s the basic rational choice argument? That is, how might a rationalist answer the question, “Why is East Asia Rich?”


What’s the basic rational choice argument? That is, how might a rationalist answer the question, “Why is East Asia Rich?”

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The short version: If problem of poverty is due to the inability of society to overcome collective goods problem, the achievement of prosperity must be the reverse


The short version: If problem of poverty is due to the inability of society to overcome collective goods problem, the achievement of prosperity must be the reverse

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Beginning with a focus on the collective goods problem is good starting point for rational choice argument. But what is the next step? The next point of focus?

Quick answer: The state


Beginning with a focus on the collective goods problem is good starting point for rational choice argument. But what is the next step? The next point of focus?

Quick answer: The state

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Why is the state important?

Basic reason: States are generally the only institution capable of compelling contributions to the creation of public goods

For states to compel contributions to the creation of public goods, they need to be “strong”

But, this raises an obvious, but important set of questions …


Why is the state important?

Basic reason: States are generally the only institution capable of compelling contributions to the creation of public goods

For states to compel contributions to the creation of public goods, they need to be “strong”

But, this raises an obvious, but important set of questions …

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Were the East Asian states strong?

Why were they strong? Did the East Asian states, in fact, use their “strength” to focus on building public goods?



Why were they strong? Did the East Asian states, in fact, use their “strength” to focus on building public goods?

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Why were they strong?

The “legacy” of colonialism, which created a solid institutional foundation in all three countries for a strong state

The historical context of the Cold War: the US played a key role in buttressing the East Asian states in an effort to build strong, anti-communist allies in Asia


Why were they strong?

The “legacy” of colonialism, which created a solid institutional foundation in all three countries for a strong state

The historical context of the Cold War: the US played a key role in buttressing the East Asian states in an effort to build strong, anti-communist allies in Asia

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Did the East Asian states, in fact, focus on building public goods?

In all three countries the states played a remarkably similar role in terms of economic policy, much of which was directed toward creating a strong infrastructure

All three states also made sure to direct scarce capital toward productive investments in core or targeted industries.


Did the East Asian states, in fact, focus on building public goods?

In all three countries the states played a remarkably similar role in terms of economic policy, much of which was directed toward creating a strong infrastructure

All three states also made sure to direct scarce capital toward productive investments in core or targeted industries.

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Saying strong states played important roles in East Asian development, however, raises more questions

In particular, we also need to know why state leaders behaved the way they did

In other words, why did they adopt policies that promoted national economic development rather than lining their own pockets?


Saying strong states played important roles in East Asian development, however, raises more questions

In particular, we also need to know why state leaders behaved the way they did

In other words, why did they adopt policies that promoted national economic development rather than lining their own pockets?

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From rational choice perspective, question has particular pertinence with regard to Korea and Taiwan, two non-democratic regimes …

Why would strong, authoritarian states pursue national development goals instead of engaging in self-serving corruption?

What was it about the strategic environment that made the former a rational decision as opposed to the latter?


From rational choice perspective, question has particular pertinence with regard to Korea and Taiwan, two non-democratic regimes …

Why would strong, authoritarian states pursue national development goals instead of engaging in self-serving corruption?

What was it about the strategic environment that made the former a rational decision as opposed to the latter?

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General Answer: The profound sense of national vulnerability that existed in all three countries

“National vulnerability” motivated leaders to understand that their political survival was intimately connected to the strength of the country as a whole, which, in turn, was linked to the strength of the national economy


General Answer: The profound sense of national vulnerability that existed in all three countries

“National vulnerability” motivated leaders to understand that their political survival was intimately connected to the strength of the country as a whole, which, in turn, was linked to the strength of the national economy

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Discussion Question: Does the rational choice argument make sense? Is it persuasive?


Discussion Question: Does the rational choice argument make sense? Is it persuasive?

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One last note

Rational choice arguments are not all the same

Other scholars using a rational choice perspective, in fact, have come to almost diametric conclusions about the reasons for the East Asian economic success

Specifically, many completely reject the notion that the state had anything to do with East Asian industrialization


One last note

Rational choice arguments are not all the same

Other scholars using a rational choice perspective, in fact, have come to almost diametric conclusions about the reasons for the East Asian economic success

Specifically, many completely reject the notion that the state had anything to do with East Asian industrialization

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Logic of competing arguments

State intervention in the market must be limited because it tends to inhibit economic efficiency

This happens because state policies invariably create barriers or other obstacles to the free flow of goods, capital, labor and information

The economic success of East Asia, instead, is attributed to the region’s strong integration into global markets and, more specifically, an emphasis on exporting


Logic of competing arguments

State intervention in the market must be limited because it tends to inhibit economic efficiency

This happens because state policies invariably create barriers or other obstacles to the free flow of goods, capital, labor and information

The economic success of East Asia, instead, is attributed to the region’s strong integration into global markets and, more specifically, an emphasis on exporting

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The Cultural Perspective

The Cultural Perspective

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Cultural Perspective

Basic point

A cultural argument should begin with the premise that culture matters, but how and why it matters will almost certainly differ in different historical, social, and political contexts

Thus, we must be extremely careful about making grand claims, such as “Confucianism explains capitalist development in East Asia”


Basic point

A cultural argument should begin with the premise that culture matters, but how and why it matters will almost certainly differ in different historical, social, and political contexts

Thus, we must be extremely careful about making grand claims, such as “Confucianism explains capitalist development in East Asia”

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A “Bad” Cultural Argument

Consider the statement: Confucianism explains capitalist development in East Asia

What’s wrong with this claim?


A “Bad” Cultural Argument

Consider the statement: Confucianism explains capitalist development in East Asia

What’s wrong with this claim?

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Cultural Perspective: The “Old” Confucian Argument

Basic Point: Based on the idea that the core values of Confucianism—which are usually identified as respect for authority, filial piety, harmony, and intellectualism (respect of education)—have been instrumental in promoting economic development in East Asia

It is argued that these values are particularly well matched to the demands of contemporary capitalism, encouraging, as they do, a strong work ethic, high levels of education and training, discipline and company loyalty, and a propensity to save and invest

Cultural Perspective: The “Old” Confucian Argument

Basic Point: Based on the idea that the core values of Confucianism—which are usually identified as respect for authority, filial piety, harmony, and intellectualism (respect of education)—have been instrumental in promoting economic development in East Asia

It is argued that these values are particularly well matched to the demands of contemporary capitalism, encouraging, as they do, a strong work ethic, high levels of education and training, discipline and company loyalty, and a propensity to save and invest

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Cultural Perspective: The problem with the “old” Confucian argument

The Importance of Education

Perhaps the most important Confucian value is respect for education

In East Asia, the enormous emphasis put on educational achievement, so the argument goes, has not only given East Asian societies a huge competitive advantage over less educated and less skilled societies, but also has allowed East Asia to catch up with the West more quickly than would otherwise have been the case


The Importance of Education

Perhaps the most important Confucian value is respect for education

In East Asia, the enormous emphasis put on educational achievement, so the argument goes, has not only given East Asian societies a huge competitive advantage over less educated and less skilled societies, but also has allowed East Asia to catch up with the West more quickly than would otherwise have been the case

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The basic Confucian argument, on the surface, sounds reasonable. So what’s the problem?

The basic problem: A lack of comparative perspective

Advocates assume that Confucianism has played an essentially similar role throughout East Asia generally

But as even the most cursory comparative analysis will show, this just is not true; indeed, the closer one looks at various East Asian societies, the clearer it becomes that they are not a bunch of cultural clones


The basic Confucian argument, on the surface, sounds reasonable. So what’s the problem?

The basic problem: A lack of comparative perspective

Advocates assume that Confucianism has played an essentially similar role throughout East Asia generally

But as even the most cursory comparative analysis will show, this just is not true; indeed, the closer one looks at various East Asian societies, the clearer it becomes that they are not a bunch of cultural clones

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The Problem: To put it very simply, Confucian “culture” in Japan is not the same as in Taiwan, which is not the same as in Korea

Just consider some basic facts: in Korea, only 1% of the population identify themselves as Confucian; by contrast, Christianity is very strong: about 32 percent of South Koreans are Christian (most Presbyterian, followed by Roman Catholics, Pentecostals, and Methodists), and close to 24 percent are Buddhist

Given these basic facts, how is it possible to classify Korea as a Confucian society … why not a Christian society?


The Problem: To put it very simply, Confucian “culture” in Japan is not the same as in Taiwan, which is not the same as in Korea

Just consider some basic facts: in Korea, only 1% of the population identify themselves as Confucian; by contrast, Christianity is very strong: about 32 percent of South Koreans are Christian (most Presbyterian, followed by Roman Catholics, Pentecostals, and Methodists), and close to 24 percent are Buddhist

Given these basic facts, how is it possible to classify Korea as a Confucian society … why not a Christian society?

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Some more facts

Only 0.7 percent of Japanese are Christian

Most Japanese identify themselves as Buddhist or followers of Shinto, but it’s also fairly reasonable to say that Japan is a strongly secular society

Is it likely, then, that Confucianism in Korea and Japan are different and that they produce different types of Confucianism?


Some more facts

Only 0.7 percent of Japanese are Christian

Most Japanese identify themselves as Buddhist or followers of Shinto, but it’s also fairly reasonable to say that Japan is a strongly secular society

Is it likely, then, that Confucianism in Korea and Japan are different and that they produce different types of Confucianism?

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Key point: We need to remember that the impact of Confucianism or any other cultural factor, is likely to be different in different societies or even in the same society at different times

In other words, Confucianism or culture more generally doesn’t always matter in the same way, in part because it doesn’t always manifest itself in the same way in different places


Key point: We need to remember that the impact of Confucianism or any other cultural factor, is likely to be different in different societies or even in the same society at different times

In other words, Confucianism or culture more generally doesn’t always matter in the same way, in part because it doesn’t always manifest itself in the same way in different places

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Cultural Perspective: A Better Approach

In place of an all-encompassing Confucian argument are approaches that examine the relationship between culture and economy with careful regard to specific contexts

Consider the example discussed in the chapter: Capitalist development and Confucianism in Japan and Taiwan

Cultural Perspective: A Better Approach

In place of an all-encompassing Confucian argument are approaches that examine the relationship between culture and economy with careful regard to specific contexts

Consider the example discussed in the chapter: Capitalist development and Confucianism in Japan and Taiwan

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The Structural Perspective

The Structural Perspective

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Structural Perspective Simple explanation

East Asian wealth is a result of the region’s advantageous position in the world economy and …

… a particularly favorable (and largely fortuitous) geopolitical relationship with the world’s hegemon, the United States during the post-WWII period

Structural Perspective Simple explanation

East Asian wealth is a result of the region’s advantageous position in the world economy and …

… a particularly favorable (and largely fortuitous) geopolitical relationship with the world’s hegemon, the United States during the post-WWII period

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Structural Structural Perspective: Perspective: A Primer on A Primer on World-Systems World-Systems TheoryTheory

The figure represents The figure represents the key the key spatial elementspatial element of the capitalist of the capitalist world-system, namely, world-system, namely, trimodal division of trimodal division of the world into three the world into three basic zones: the basic zones: the core,core, the the peripheryperiphery, and the , and the semi-peripherysemi-periphery

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Structural Perspective: World-Systems Theory

Key Temporal Elements

Cyclical rhythms Secular trends Contradictions Crisis


Key Temporal Elements

Cyclical rhythms Secular trends Contradictions Crisis

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Understanding of basic spatial and temporal elements of capitalist world-system, lead to simple principle that defines the much of recent history, especially in terms of understanding the actions of the United States prior to and since World War II:

Keeping the world safe for capitalism


Understanding of basic spatial and temporal elements of capitalist world-system, lead to simple principle that defines the much of recent history, especially in terms of understanding the actions of the United States prior to and since World War II:

Keeping the world safe for capitalism

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Public Papers of the Presidents Dwight D. Eisenhower, 1954, p. 381- 390

The President's News Conference of 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: The President: 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 (con’t)



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: The President: 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 (con’t)

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Why is East Asia Rich?Why is East Asia Rich?Public Papers of the Presidents Dwight D. Eisenhower, 1954, p. 381- 390


A: (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. There are others, of course, the rubber plantations and so on. 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.

So, the possible consequences of the loss are just incalculable to the free world.



A: (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. There are others, of course, the rubber plantations and so on. 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.

So, the possible consequences of the loss are just incalculable to the free world.

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Structural Perspective

Key points

Japanese postwar development was premised on the need to establish a strong foundation for capitalism in Asia

Japan, in other words, was chosen or “invited” to develop by the United States, the hegemonic power

This was a very “special invitation” that gave all sorts of privileges to Japan, and by extension to South Korea and Taiwan

In this sense, too, South Korea and Taiwan were also “invited to develop”


Key points

Japanese postwar development was premised on the need to establish a strong foundation for capitalism in Asia

Japan, in other words, was chosen or “invited” to develop by the United States, the hegemonic power

This was a very “special invitation” that gave all sorts of privileges to Japan, and by extension to South Korea and Taiwan

In this sense, too, South Korea and Taiwan were also “invited to develop”

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The Flying Geese Model of Industrial Development

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A key implication: If Japan, Korea and Taiwan weren’t “invited” to develop, they would not have achieved the economic success that they did

What do you think?


A key implication: If Japan, Korea and Taiwan weren’t “invited” to develop, they would not have achieved the economic success that they did

What do you think?

1 POLS 373 Foundations of Comparative Politics Lecture: Why is East Asia Rich? Part 2, Explanations...

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