In This Review

Governing The Market: Economic Theory And The Role Of Government In East Asian Industrialization
Governing The Market: Economic Theory And The Role Of Government In East Asian Industrialization
By Robert Wade
Princeton University Press, 1990, 438 pp.

This valuable book provides a quite detailed and carefully analytical account of the economic development of Taiwan and its political and social setting. However, the main concern of Wade, of Sussex and Princeton, is to demonstrate that although the widely supported neoclassical formula for policy may fit the present situation of Taiwan, South Korea and some other East Asian countries, it does not really explain their remarkable growth and industrialization. He makes a good case for his view that while market forces, at home and abroad, have been given much play, the government has also played a key part. In trade and other matters the secret of success has been that "the state has interfered . . . not less, but differently, than in many other countries."