Japan Finding The Report

Assess The Contribution Of World Bank Report The East Asian Miracle (1993), To Our Understanding Of The Success Of High Performing Asian Economies (Hpaes). You Should Use Supporting Research In Developing Your Assessment Of The World Bank (1993) Report.

The economy of East Asia has experienced a remarkable growth between 1965 and 1990. The resilient contribution of twenty-three countries has helped East Asia to achieve a sustainable economic growth as compared to other European and American economies. According to the article, Japan and four Asian tiger economies Hong Kong, Singapore, Taiwan, the Republic Korea, China, Indonesia, Thailand and Malaysia are the eight major contributors to this miraculous economic performance. The group of these eight nations is termed as High Performing Asian Economies (HPAEs). Equal income distribution among HPAEs has led to the change in the Gini Coefficient combined with greater growth in per capita income (Wade 1996). These unique characteristics have made the HPAEs different from other developing countries in Asia. The data states that Japan including the four tigers have recorded four times growth in real per capita income from 1960 to 1985. The transformation of the Japanese economy is the key concern of this study. Imposition of effective subsidy policy and convincing governmental policy are claimed to promote miracle economic growth in Japan.

The article states that market friendly approach is the driving force for the Japan’s success. The extensive intervention of the Japanese government has resulted in the macroeconomic stability in the country. It has been observed that share of the international trade to GDP has intensified to a great amount following the effectiveness of the government intervention (Beckley, Horiuchi and Miller 2018). To explore the economic opportunities, the government has guided the resource allocation process between the public and private sector. As per the economic theory, accumulation of economic resources, fast technological catch-up and efficient allocation are the fundamental pillars of the Japanese economy. It is important to identify the appropriate functional approach to understand the nature of the economic growth. The policymakers in Japan have preferred to adopt fundamental intervention policy to support the sustainable economic growth. They have decided to invest more in human capital and secure stability in the financial systems through limited price changes. Meanwhile, the competitive discipline has accelerated the economic growth process depending on the competitive market structure. Both exporter and importer in Japan have accrued benefits from modification in the governmental strategies. The intensive focus on the pro-exporter regime during the early 1950s and 1960s has introduced the import-substitution policy in Japan. Well bureaucratic structure with substantial power has helped the macroeconomic policymakers to formulate a credible economic strategy.