Summer School 6: China, Taiwan and how nations grow rich

At a Glance

• Economic Transformation in East Asia - “It’s a miracle in almost all senses of the word, dramatic societal, political and economic transformation, just within a generation.” This highlights the incredible growth and development seen in East Asian countries in a short period of time.

• Lessons for Economic Success - “You need a sense of urgency, a mechanism of competition, and resources to scale for successful economic growth.” These key principles are crucial for countries looking to grow their economies rapidly.

• Importance of the Market - “You cannot forget the importance of the market. There are some cases where you do need the government to step in, but the accountability of the market is crucial to make it work.” This emphasizes the role of the market in driving economic growth and success.

What to Do

• Have a sense of urgency - Urgency can drive motivation and push individuals to work harder and strive for success, especially in competitive environments.

• Encourage competition - Competition fosters innovation and ensures that only the best ideas and companies thrive, leading to overall growth and improvement in the marketplace.

• Provide resources for scaling - In order to grow and succeed, companies need access to resources such as funding, talent, and infrastructure to expand and reach their full potential.

• Balance government controls and economic freedoms - Finding a balance between government intervention and economic freedom can lead to a healthy and sustainable business environment, allowing for growth while maintaining stability.

• Implement industrial policy - Industrial policy can help guide economic development by focusing on specific industries and providing support and incentives for growth and innovation.

What to Get

• Not Much Here

Summary

In this podcast episode, the focus is on the economic history of East Asia, specifically China and Taiwan, during a time of remarkable growth and transformation. The episode delves into how these countries, once poor agrarian societies, were able to achieve rapid economic progress within a generation. The discussion is led by Professor Cheng Tai-She, an expert in Asian economies, who highlights the incredible transformation these countries underwent and the key factors that contributed to their success.

One of the main themes explored in the episode is the concept of urgency and the drive to succeed that was present in these East Asian countries. The sense of hunger and willingness to do whatever it takes to make progress played a crucial role in propelling their economies forward. Additionally, the episode emphasizes the importance of accountability and competition in fostering economic growth. Governments in these countries implemented mechanisms to encourage competition among companies, ensuring that only the most viable ideas and businesses thrived.

Another key aspect discussed is the need for resources and support for companies to scale and grow. Whether it was through financial support, talent acquisition, or infrastructure development, these countries provided the necessary resources for companies to expand and become successful. The episode also touches on the role of the market in driving economic growth, highlighting the importance of government intervention while also emphasizing the accountability of companies to compete in the marketplace. Overall, the episode provides valuable insights into the economic strategies and principles that contributed to the East Asian miracle of rapid economic development.