Hyper-Growth in Asian Economies: A Comparative Examinatio of Taiwan and Singapore

Abstract

The post-World War II period witnessed the explosive economic growth of Taiwan and Singapore. This was achieved through three inter-dependent factors. 1) Both countries possessed excellent long- and short-term pragmatic planning, resulting in an outward-looking dynamic strategy of export-oriented industrialization. Efficient savings and debt management further contributed to successful growth. 2) Both were ruled by authoritarian governments which enjoyed an expansive role in the economy, leading to the establishment of state-led, market-driven economies. 3) Both demonstrated a strict commitment to human resource development, resulting in equitable distributions of income and rising living standards. A fourth 'factor' was the cultural context within which both countries flourished; the culture of Confucianism has propagated an environment conducive to authoritarian rule and apparent economic growth. These 3 factors and the cultural context combined to ensure excellent policy effectiveness and labor force peace.