_.png){kind=logo}
* Corresponding Author
The East Asian Economy Post-rebalancing: Domestic Demand-led Growth, Social Security, and Inequality
https://doi.org/10.22146/ikat.v1i1.27468 Kosuke Mizuno(1*)
(1) Kyoto University
(*) Corresponding Author
Abstract
East Asian, including ASEAN (Association of Southeast Asian Nations), countries have pursued the export-oriented development strategies, attracting foreign direct investment and promoting export-driven growth. However, after the Lehman shock, these countries adopted rebalancing policies from export-driven growth to domestic demand-driven growth. Chinese measures to promote domestic demand since 2008 had succeeded in boosting the economy until 2011 with domestic investments and increase in consumption. Chinese economic growth until 2011–2012 made possible an international commodity boom that resulted in the economic development of Malaysia and Indonesia. However, since 2012, the Chinese economy has been suffering from excess capacity and bad loans, hence ending the international commodity boom. ASEAN countries promptly started rebalancing by cutting back on their reliance on exports and increasing domestic investment and consumption, with variation among the countries. ASEAN countries pursued inclusive policies such as education, medical care, and social security. These policies promoted consumption and investment, helping grow the middle class. However, technological progress, globalization, and market-oriented reforms have also been the driving inequality in many Asian countries in the last two decades, and these forces have changed income distribution through three channels, namely, capital, skill, and spatial bias. Inequality created by conventional development strategies in this region has become the basis for conflicts among the region’s different economic strata. Inequality has had the effect of depressing investment—and thus growth—by fueling economic, financial, and political instability.
Keywords
Full Text:
PDFReferences
Aiginger, K. (2006). Competitiveness: From a Dangerous Obsession to a Welfare Creating Ability with Positive Externalities. Journal of Industry, Competition and Trade, 6(2), 161-177.
Arora, V., & Cardarelli. R (Eds.). (2011). Rebalancing Growth in Asia, Economic Dimentions for China, Washington D.C.: International Monetary Fund.
Asian Development Bank. (2010). ADB Key Indicator for Asia and Pacific 2010. Mandaluyong City: Asian Development Bank.
__________. (2011). Key Indicators for Asian and Pacific 2011. Manila: Asian Development Bank.
__________. (2014). Asian Development Outlook 2014 Fiscal Policies for Inclusive Growth: Mandaluyong City: Asian Development Bank.
__________. (2015). Asian Development Outlook 2015 Financing Asia’s Future Growth. Mandaluyong City: Asian Development Bank.
__________. (2016). Asian Development Outlook 2016 Asia’s Potential Growth. Mandaluyong City: Asian Development Bank.
Bank Indonesia. (2016) Laporan Perekonomian Indonesia Tahun 2015. Jakarta: Bank Indonesia.
Berg, A., Ostry, J. D., & Zettelmeyer, J. (2008.). What Makes Growth Sustained? IMF Working Paper 08 (59). Washington, D.C.: International Monetary Fund.
Bhalla, A. S. (Ed.). (1998). Globalization, Growth and Marginalization, London, Macmillan, New York: ST. Martin, Ottawa: International Development Research Center.
Deyo, F. (Ed.). (1989). The Political Economy of the New Asian Industrialism. Ithaca: Cornell University Press
Doty, R. L. (2003). Anti-Immigrantism in Western Democracies Statecraft, Desire, and the Politics of Exclusion. London: Routledge.
Fukagawa, Y. (2004). Governance Reform of Family Business and East Asian Economic Cooperation.
In Urata, S (Ed.), The Age of Asian FTA. Tokyo: Nihon Keizai Shinbunsha.
Hayami, Y., & Masao, K. (2000). A Rice Village Saga: Three Decades of Green Revolution in The Philippines. Basingstoke: Macmillan.
Hiratsuka, D. (Ed.). (2006). East Asia’s De Facto Economic Integration. New York: Palgrave Macmillan.
Hiroi & Komamura (Eds.). (2003). Ajja no Shakai Hoko (Social Security in Asia). Tokyo: University of Tokyo Publications.
Hock, S. S. (Ed.). (2011). Managing Economic Crisis in Southeast Asia. Singapore: Institute of Southeast Asian Studies.
Holliday, I., & Wilding, P. (2003). Welfare Capitalism in East Asia, Social Policy in the Tiger Economies. New York: Palgrave Macmillan.
International Monetary Fund. (2015). Causes and Consequences of Income Inequality: A Global Perspective. Paper prepared by Era Dabla-Norris et al., June.
Jones, C. (1990). Hong Kong, Singapore, South Korea and Taiwan: Oikonomic Welfare States, Government and Oppositions, 25 (4), 446–62.
__________. (1993). The Pacific Challenges. In Jones, C. (Ed.), New Perspectives on the Welfare State in Europe. London: Routledge.
Jwa, S. H., & Saugyeon, H. (2009). A New Interpretation of the Origins of the Subprime Mortgage Crisis, the Failure of Anti-market Government Intervention. Beijing Forum 2009, the Harmony of Civilizations and Prosperity for All—Looking Beyond the Crisis to a Harmonious Future, Collection of Papers and Abstracts of Panel Sessions, Financial Crisis: Challenges and Responses, Beijing Forum Organizing Committee.
Kan, S. (2014). The Economic Perspectives, whether to Overcome the ‘Two Trap’. In Akio, T. et al. (Eds.), Lectures on Modern China for People. Tokyo: University of Tokyo Press (in Japanese).
Kharas, H., & Gertz, G. (2010). The New Global Middle Class: A Cross-Over from West to East. In Cheng, Li, (Ed.), China’s Emerging Middle Class: Beyond Economic Transformation. Washington, D.C.: Brookings Institution Press.
Kojima, R. (2008) Hiper Growth and Structural Contradictions. In Nazrul, I., & Reiitsu, K. (Eds.), Resurgent China: Issues for the Future. Tokyo, Keiso Shobo (in Japanese).
Krugman, P. (1994). Competitiveness: A Dangerous Obsession. Foreign Affairs, 73 (2).
__________. (2012). End This Depression Now. New York: W.W. Norton & Company.
Kuroiwa, I., Hirosi, K., & Hajime, S. (2009). The Triangular Trade. In Satoshi, I., & Yoko, U. (Eds.), Asian Beyond the Crisis, Vision from International Input-Output Analysis. Chiba, Institute of Developing Economies.
Lim, C. (Ed.). (2009). Globalization and Financial Crisis. Singapore: NUS Business School.
Mieno, F. (2009, February 23-24). Foreign Ownership, Listed Status and Financial System in East Asia: Evidence from Thailand and Malaysia. Paper presented at Final symposium of the JSPS-NRCT Core University Program the Making of East Asia: from both Macro and Micro Perspectives, CSEAS, Kyoto University.
Mizuno. K. (2016, November 5-6). The Indonesian Economy Post-Lehman Shock: Some Results of a Macroeconomic Model Simulation. Paper presented at the 15th International Convention of East Asian Economic Association, Sustainable and Inclusive Development in Asia and Global Economy, Bandung.
Oizumi, K. (2010). Challenges in the Establishment of Universal Social Security Systems in ASEAN, from the perspectives of Demographic Dynamics and the Japanese Experience. Paper presented at Analyzing Global Financial Crisis and East Asia; Twelve Years Change Since the 1997 Economic Crisis and Ideas for a New East Asian Economic Model, in First Joint International Workshop of the JSPS Asian Core Program, CSEAS Kyoto University, Japan.
Oliver, C. (2016). Unleashing Demons: The Inside Story of Brexit. London: Hodder & Stoughton.
Pasuk, P., & Pornthep, B. (2016). Thailand: Rebalancing for Growth by Muddle through Plus. (forthcoming).
Peterson, V., & Spole. (2003). A Critical Rewriting of Global Political Economy, Integrating Reproductive, Productive and Virtual Economies. London: Routledge.
Ping, C. (2009). The Efficient Market Delusion and the Viable Market Evolution, Beijing Forum 2009, The Harmony of Civilizations and Prosperity for All—Looking Beyond the Crisis to a Harmonious Future, Collection of Papers and Abstracts of Panel Sessions, Financial Crisis: Challenges and Responses, Beijing Forum Organizing Committee.
Prasad, E. S. (2009). Rebalancing Growth in Asia. Working Paper 15169, NBER Working Paper Series, Cambridge: National Bureau of Economic Research.
Rames, M., & Asher, M.G. (2000). Welfare Capitalism in Southeast Asia: Social Security, Health and Education Policies. New York: Palgrave.
Rodrik, D. (2005). Growth Strategies. In Aghion, P.,& Durlauf. S. (Eds.), Handbook of Economic Growth. North-Holland.
Suehiro, A. (Ed.). (2006) Higashi azia no fukusi sisutemu no yukue: kigyou-nai fukushi to kookka no shakai-hoshou-seido: ronnten no seiri to dehta-shuu (The Direction of the East Asian Social Welfare System: Enterprise-based Welfare and State-based Social Security System; Points of Contents and Aggregated Data), Institute of Social Science, University of Tokyo (in Japanese).
__________.(2008). Catch-up Industrialization, the Trajectory and Prospects of East Asian Economies. Singapore & Kyoto: NUS Press & Kyoto University Press.
Sugihara, K. (2005). Japan, China, and the Growth of the Asian International Economy 1850-1949. New York: Oxford University Press.
Stiglitz, J. E. (2015). The Great Divided Unequal Societies and What We Can Do About Them. New York: W.W. Norton & Company.
__________. (2012). The Price of Inequality, How Today’s Divided Society Endanger Our Future. New York: W.W. Norton & Company.
__________.(2010). Freefall, America, Free Markets, and the Sinking of the World Economy with a New Afterward. New York: W.W. Norton & Company.
Takamasu, A. (2012, March 13). Japan’s Dilemma: Why has Japan's Economy been Stagnating since the 1990s?. Paper presented at seminar After the Global Financial Crisis in East Asia; Toward a New Model of East Asian Economy Center for Southeast Asian Studies, Kyoto University.
Tang, C. (2005). Savings and Finance in China. Tokyo: Keio University Press (in Japanese).
Vo, T. T. (2012, March 13). Beyond the Global Financial Crisis: Perspectives from the global Economy, East Asia, and Vietnam. Paper presented at Seminar After the Global Financial Crisis in East Asia; Toward a New Model of East Asian Economy Center for Southeast Asian Studies, Kyoto University.
White, G., & Goodman, R. (1998). Welfare Orientalism and the in Search for An East Asian Welfare Model. In Roger, G., White, G.,& Kwon, H. J. (Eds.), The East Asian Welfare Model: Welfare Orientalism and the State. London: Routledge.
DOI: https://doi.org/10.22146/ikat.v1i1.27468
Article Metrics
Abstract views : 4649
| 
views : 2184
Refbacks
- There are currently no refbacks.
Copyright (c) 2017 Kosuke Mizuno
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.