The Political Economy Of The New Asian Industrialism
The authors of this volume feel the need of a theoretical explanation for the remarkable economic performance of the newly industrializing countries of East Asia. They emerge from their inquiries-or at least the editor does-with the view that governments acquire a "strategic capability" to carry out effective development policies through a combination of domestic authoritarianism, good favorable links with the external world and efficient economic institutions. He hedges on Hong Kong.
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Japan is today our largest overseas trade partner and the primary source of competition for American industry. This article, therefore, focuses on Japan and to some extent on the electronics industries--including computers, semiconductors and other industrial and consumer electronics equipment--as typical of the high technology areas where competition with Japanese firms is most intense. Most of the measures which will help to make the American electronics industries more competitive apply equally to all American industry.
The major events of 1983 in East Asian politics and economics can be looked at from three broad vantage points or planes of abstraction. At the most general level one sees, rather like the movements of tectonic plates on the earth's surface, a slight shift in the center of gravity of U.S. foreign policy from Europe toward Asia. In large part this shift is prompted by a growing realization among the leaders of the United States and Japan that their nations will, for the indefinite future, be paramount in the fundamental sciences and their practical offshoots in microelectronics, biotechnology, fine ceramics, and other new areas of technical development, and that Western Europe will trail in most of these fields and the Soviet Union simply be left behind. The fact that the American President met with the prime minister of Japan three times during 1983 underscores this trend, as did the President's statement in Tokyo in November that "No relationship between any two countries is more important to world peace and prosperity than the relationship between the United States and Japan."
China gambled that economic growth would outpace environmental harm. It lost. Fixing the resultant damage may break the stalemate in U.S.-Chinese relations.
