The industrial policy of the East Asian NIEs has been known to be powerful and
effective in building up the capacity of the nation in both physical and human capital (Dore,
1986, Johnson, 1986; Vestal, 1993). The question is why other developing countries often
fail. One simple answer is effective state intervention in previously backward countries like
Japan, South Korea and Taiwan, and presumably that these states are benevolent. However,
what conditions brought about the benign states is the more difficult question to answer. It
rests heavily on institutional and historical settings in which are difficult to replicate the
experience of NIEs, but can be learned, in particular the interaction between the state and the
civil society.
The industrial policy of the East Asian NIEs has been known to be powerful andeffective in building up the capacity of the nation in both physical and human capital (Dore,1986, Johnson, 1986; Vestal, 1993). The question is why other developing countries oftenfail. One simple answer is effective state intervention in previously backward countries likeJapan, South Korea and Taiwan, and presumably that these states are benevolent. However,what conditions brought about the benign states is the more difficult question to answer. Itrests heavily on institutional and historical settings in which are difficult to replicate theexperience of NIEs, but can be learned, in particular the interaction between the state and thecivil society.
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