The East Asian Economic Development Model

It is a hot topic in economic studies. In short, it is an export-oriented development strategy. And the features are as follow: with a strong government intervention for an industrial policy, cheap cost of the labor and land, foreign investment. The key point to have the cheap cost of the labor and land is keeping the currency devaluation.

Because it was originated from Taiwan, then Singapore, Hong Kong and Korea. Next, you can see the copy model in Thailand, Vietnam even in Chine and so on. But now I feel very sad that the end of the East Asian Economic Development Model, it also means that my country needs to transfer and adjust in time. And it is the best timing. Every time I look at our government miss the good chance again and again, and I wish iron could turn into steel at once.

Many people just like to see the surface and seldom try to find out the truth. Some experts think that chine maintains 20 years 8% GDP in economic. And chinois insist they did maintain 30 years. Whatever, only a British expert found that Taiwan did maintain 40 years at least GDP 8% until 2000. In economic field, chine copies our development model, and thought their land is our land's 267 times, poulation is also more than our labors. In this way, they think they can maintain our model more longer than us. Yet they still cannot reach the Miracle of Taiwan which is the word first used by Simon Kuznets in his sutidies. And then World Bank also used our case in 2008 World Development Report. We are the only one to maintain the high GDP and the equal prosperity.

The differences between other copy model cases, we develop the small and medium enterprises in economic development. Same, I found Germany prefer to SME model. We don't have any enterprises too big to fall. But chine learns from the Korea's big enterprises as nation power. In another word, chine's 60% GDP is from cement and steel kind of national enterprises. Only 8% is from the people's income. On the contrast, Taiwan's small and medium enterprises at least are 30% in our total GDP. So GDP data can cheat.

Even we don't have the highest inflation and unemployment rate if compared to other countries. But for each jobless, the unemployment is 100% exactly for them. Also, our people always live under the nightmare of history and politics, so our businessmen are lack of ambition like Korean. They just know how to keep escaping to develop and copy our model in other developing countries. I don't know whether I should be happy or not. Because this time the export-oriented development strategy should go to the end on the world stage. Perhaps our businessmen would stop to escape and creat new model. But I am still sad for its end.