INSTITUTIONAL BASIS FOR GROWTH
East Asian miracle is due to high quality & authoritarian nature (that is with Rule and Regulations) of region’s institutions (Government-private sector cooperation).
The Principle of Shared Growth
East Asian leaders promise as the economy expanded all groups would benefit. Governments had to persuade the elites to share benefits with middle-class & the poor.
- Korea, China had comprehensive land reform programs;
- Indonesia used rice & fertilizer price policies to raise rural Y;
- Malaysia introduced explicit wealth-sharing programs to improve ethnic Malays vis-a vis the better off ethnic Chinese;
- Hong Kong & Singapore undertook massive public housing programs