Language
Country/Area
No result found
The power of industrial policy: How can the government promote the economic development of the four little dragons?
In post-Cold War Asia, the Four Asian Tigers - Hong Kong, South Korea, Singapore and Taiwan - have become important examples of global economic development with their rapid economic growth and remarkable industrial transformation. Since the 1950s, these regions have been known for their export-oriented economic policies and strong government policies. Over time, these economies have gradually transformed into high-income countries and demonstrated their competitive advantages in many areas.
The economic miracles of the four Asian tigers are all closely related to the strategic intervention of their governments.
The key to the success of the Four Asian Tigers lies in effective industrial policies and the role of the government. Although it is generally believed that market-oriented economic policies are the fundamental reason for their success, in fact, the actions and interventions of the governments of these countries are also important forces driving their economic development. According to multiple studies, state intervention, such as industrial policy and state support, is the cornerstone of these countries' economic prosperity.
In Hong Kong, the textile industry rose rapidly in the 1950s, marking the starting point of its industrialization. In the 1960s, Hong Kong's manufacturing industry gradually expanded to areas such as clothing, electronics and plastics to meet its export-oriented needs. Even in Singapore, the Economic Development Board after independence formulated a national economic strategy, successfully attracted foreign investment, and provided tax incentives to promote the growth of the manufacturing industry.
Education played an integral role in the economic success of the four Asian Tigers, with educational progress in these countries laying the foundation for their economic growth.
The popularization and improvement of education is another important factor in the four little dragons becoming high-income countries. All four countries have achieved universal primary education, and South Korea's secondary school enrollment rate was as high as 88% in 1987. A high level of education not only enhances the quality of the workforce, but also improves the country's overall competitiveness. The policies of the four little dragons also enabled them to achieve results in science and technology investment, making them global competitors in education and technology.
In addition to education, these countries have also made large investments in infrastructure, supporting economic growth. From roads and bridges to communication facilities, the infrastructure of the four little dragons is effective, reducing production costs and promoting the development of enterprises. They also take advantage of foreign trade and rely on foreign markets such as the United States to support their economic status.
The success of the Four Asian Tigers is closely related to cultural heritage, with the Confucian qualities of diligence and respect for authority seen as the foundation of their development.
Confucian culture has taken root in these countries, forming a strong social ethic and values that enables people to maintain a high level of discipline and work hard in the face of the challenges of industrialization. Former Singapore Prime Minister Lee Kuan Yew once suggested that Asian values provide an advantage over Western culture. In such a cultural context, the government can also more effectively promote development policies and manage the economic system.
Although the four little dragons encountered numerous challenges during the financial crises in 1997 and 2008, they still demonstrated strong resilience. Governments designed synchronized rescue plans aimed at restoring their economies, which effectively addressed the impact of the crisis and concretely improved economic performance in the short term. The speed of recovery in South Korea, Taiwan and Singapore after the crisis is even more remarkable.
Even in times of crisis, the four little dragons were still able to recover quickly through effective government policies, fully demonstrating the resilience of their systems.
In summary, the economic achievements of the Four Asian Tigers are inseparable from industrial policies and government actions. From education to infrastructure, from foreign trade to domestic policy, every aspect is carefully designed to meet the country's long-term goals. Can the success of these economies provide inspiration for current developing countries? Can we also find a path suitable for our own development in the tide of globalization?
