Asia's Next Giant: South Korea And Late Industrialization
"Korea is an example of a country that grew very fast and yet violated the canons of conventional wisdom." Instead of liberalization, entrepreneurship, export specialization and the play of market forces, Professor Amsden of the Harvard Business School traces Korea's success to strong government that gave large firms protection and support in return for good use of imported technology and cheap labor. Her findings-supported by a look at several major industries-not only give a new picture of Korea but challenge much conventional economic teaching about development.
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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 has achieved stunning economic progress since the 1970s, thanks to aggressive liberalization, a commitment to exporting high-tech goods, and a massive injection of foreign investment. Although this unprecedented success is understandably unnerving to China's neighbors and trading partners, it should not be cause for worry; China, the United States, and the rest of the world still have lots of business to do.
US consciousness of the APR focuses mainly on bilateral trade imbalances. "Less understood... is how substantially the balance of economic power within the Asian-Pacific region itself has shifted away from the United States and how that inevitably changes the distribution of political influence in the area".

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