The Role of Government in Overcoming Market Failure; Taiwan, South Korea and Japan

Abstract

"My argument is that the governments of Taiwan, South Korea and Japan have an unusually well developed capacity for selective intervention; and that this capacity rests upon (a) a powerful set of policy instruments, and (b) a certain kind of organization of the state, and of its links with other major economic institutions in the society. The East Asian three show striking similarities with respect to both instruments and institutions. They also, of course, show striking similarities with respect to (c) superior economic performance—-notably with respect to rapid restructuring of the economy towards higher technology production. The question is: what are the causal connections between (a), (b), and (c)?"