Can todays developing nations use East Asian Model of Development?

East Asian countries achieved phenomenal growth rate within a very short period. The countries were able to transfer from light industries to heavy industries within a few decades. While the transformation seemed magical to those in the west, a close examination of the events in the country reveal a series of steps that the government took to foster this development. The East Asian technological and economic feat was possible because of an increase in inputs, increased invested in physical capital, raise in the level of education, and employment opportunities. The most important factor that contributed to the exceptional growth rate in the East Asian countries is the willingness to save. Unlike the western population, the Asians are willing to sacrifice todays consumptions for tomorrows gains. This willingness to save for the sake of future productivity ensures that there is enough to invest in upcoming projects and opportunities. 

For the East Asian countries to achieve the level of technology that they have achieved thus far, they have focused on an external oriented strategy. The key is ensuring efficient allocation of resources. Examining the role of the government in the development of the countries reveal that it is possible to understand what the countries did and replicate the same in other developing countries. Before determining the possibility of applying the lessons a learnt from these countries, it is important to understand how so much success is concentrated in one region. Considering random allocation of success, the chances of countries within the same region all achieving extraordinary rates of growth simultaneously is highly unlikely. The East Asian countries have achieved what took the western world an entire century in a quarter of the time. It is important to note the countries have not only achieved high economic growth rates, but also equitable distribution of income. 

East Asian growth did not occur in a single wave. The growth came in a few waves with Japan leading the pack. Following Japan closely were the Asian tigers. These include Taiwan, S. Korea, and Hong Kong. The second wave constituted Thailand, Malaysia, and Indonesia. The third wave is underway and includes two countries; Vietnam and the People Republic of China. According to experts in the field, Japans success provided a model for other countries in the region to study and follow. The flying geese theory provides a reason why after Japans success the other countries followed. According to the theory, flying geese try to maintain their formation by striving to achieve the speed set by the leader. This links the developing countries in a hierarchical growth chain that ensure regional countries follow the same trend. It is clear since the Second World War; the countries neighboring Japan have been studying the Japan experience in details. 

The success of the East Asian countries is simply a result of getting the basics right. The countries invested in increases human and physical capital coupled with the efficient allocation of resources. The success countries are better at providing a stable environment for business with an enabling legal framework. The countries are also oriented towards international trade, which offers limitless opportunities. The countries polices do not include price controls and other distortions common in other developing countries. The role of the government in these economies is to invest in education, infrastructure, and create an environment that attracts investors. High investment rates are the secret of the East Asian story. Saving money in the short run, by sacrificing current consumption for future growth, results in increased per capita income in the future.