East Asian Model of Industrialisation

Assignment Brief

In this paper, you are required to discuss and shed some light on the East Asian Model of industrialisation along with the concept of developmental state. Moreover, you have to focus on the following aspects:

• The usefulness in the phenomenon of industrial developmental
• The introduction and reasons of developmental state

Instructions

What is the East Asian Model of industrialisation and what is a Developmental State? Discuss its usefulness in explaining industrial development and firm capabilities. - Stephan haggards book

• Explain who coined the term developmental state
• Discuss the active purposes behind the term
• Define the East Asian Model of industrialisation
• Present your viewpoints regarding its effectiveness and capabilities

Sample Answer

The East Asian Model of Industrialisation and the Concept of the Developmental State

The East Asian Model of industrialisation refers to a set of economic strategies and policies adopted by several East Asian countries, including Japan, South Korea, Taiwan, and Singapore, to rapidly transform from agrarian economies into advanced industrial economies. This model emphasises state-led industrialisation, export-oriented growth, and investment in human capital and technology. Unlike purely market-driven development, the East Asian Model combines government intervention with private sector entrepreneurship to achieve high rates of economic growth and industrial upgrading.

The concept of the developmental state is closely linked to this model. A developmental state is a nation where the government plays a proactive and strategic role in economic development. This term was first popularised by Chalmers Johnson in his analysis of Japan’s post-war economic success. Johnson argued that the Japanese state’s bureaucratic institutions, policy-making, and coordination with industries were central to Japan’s rapid industrialisation. The developmental state is characterised by strong state autonomy, technical expertise in bureaucracies, and the ability to design and implement long-term industrial policies.

The usefulness of the East Asian Model and the developmental state lies in explaining industrial development and firm capabilities. By coordinating policies, providing incentives, and protecting key industries, developmental states were able to nurture domestic firms, improve technological capabilities, and compete successfully in global markets. For example, South Korea’s chaebols (large family-owned conglomerates) were supported by government policies that guided investment in strategic sectors such as electronics, shipbuilding, and automotive industries. This strategic intervention allowed firms to accumulate skills, innovate, and scale globally, demonstrating the model’s effectiveness in explaining industrial upgrading and economic transformation.

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