The Crisis of Asia's Development Model

Abstract

The phenomenon known as the Asian miracle, characterized by a remarkable growth in Gross Domestic Product, as well as improvements in indicators such as savings rates, investment, education, and reduction of infant mortality, has led to an economic transformation in countries like Japan, Korea, Taiwan, Singapore, Hong Kong, China, and India, transitioning them from outdated technological schemes to more modern and prosperous ones. This development has been driven by state policies that grant the government a central role in defining priorities and allocating resources, creating a particular relationship between political elites and business conglomerates, where both parties benefit mutually. In the current context of globalization, this essay questions the validity of the development model centered on the protection of large corporations. Although this model has proven effective in the past, it may not be suitable for addressing contemporary challenges, where global competition and innovation stimulus are crucial. Therefore, the text suggests the need to review and, if necessary, adjust the development model in Asia to meet the current demands of globalization. However, there is no certainty that Asian economies have the willingness to reform the model that has allowed them to achieve notable levels of growth during the second half of the 20th century.