References Pacific Basin Notes. This series appears on an occasional basis.
And Prime Minister Narendra Modi, who assumed office in Mayis planning to do so by replicating the East Asian model of development based on infrastructure and strong manufacturing.
With India facing the urgent tasks of creating jobs and improving its creaking infrastructure, the East Asian model seems to hold great promise for the country. What went wrong and what can be done?
Click here to subscribe for full access. Despite these setbacks, East Asian experiences still offer a few useful insights that are worthy of being considered by Indian policymakers.
More than anything else, East Asians have valued building credibility and creating a win-win environment, devising and implementing public policies in accordance with these values.
Stability and predictability of policies was an overriding objective of policymakers, who refrained from making big promises. Various incentives were also put in place to attract foreign investment and create an environment where domestic industries can learn from foreign counterparts while the latter can easily do businesses.
When looking through the prism of East Asian experiences, however, India seems to be heading in the opposite direction. Since its inauguration in Maythe Modi government has announced an endless list of flagship projects: Unfortunately, the government is short-staffed and does not have the capacity to manage and oversee all these schemes.
Moreover, many of these projects set unattainable and ideal goals. There are pressing needs to improve policy implementation and performance as well. The Modi government is well aware of the importance of foreign capital and technology in carrying out its announced plans and has reached out to foreign investors accordingly.
The government also seems to be relying on buoyed investment commitment numbers to create positive investment prospects for the country. Indeed, without seizing enough political power, Modi cannot bring the changes he wants, and that is why his focus has tilted toward the upcoming state elections.
Yet the recent less rosy prospect of Indian economy raises a question of which should come first: A grand vision is needed to win an election, but it is not enough to sustain the victory. Soyen Park is a South Korean national currently living in New Delhi, where she works as a researcher on the Indian economy.
Yizhe Daniel Xie is a Ph.Almost 20 years ago, the World Bank released a groundbreaking report – The East Asian Miracle – that called worldwide attention to the economic success of eight economies in the region, leading to a discussion on the extent to which policies followed by them could be replicated.
East Asian Miracle: Economic Growth and Public Policy, on which this essay draws extensively. The East Asian Miracle report is the product of a World Bank research team led by John Page and comprising Nancy Birdsall, Ed Campos, W.
Max Corden, Chang-Shik Kim, Howard Pack, Richard Sabot, Joseph E. Stiglitz, and Marilou Uy. Almost 20 years ago, the World Bank released a groundbreaking report – The East Asian Miracle – that called worldwide attention to the economic success of eight economies in the region, leading to a discussion on the extent to which policies followed by them could be replicated.
The East Asian Miracle: Economic Growth and Public Policy (World Bank Policy Research Report) Sep 30, by The World Bank. Paperback. $ (51 used & new offers) out of 5 stars 3.
Rethinking the East Asian Miracle (World Bank Publication) Jun 1, by Joseph E. Stiglitz and Shahid Yusuf. eight economies that were the focus of the World Bank study The East Asian Miracle (World Bank, a) and add the Philippines. We include Japan with the industrial.
The Philippines have a lot of catching up to do, the East Asian miracle may also come true for the Philippines if it would only reconsider some of the policies being implemented and strengthen its institutions that would foster economic development.