Political Science 214 / 514 Fall 2003
Political Economy of East Asia
Prof. Jennifer Amyx
(jamyx@sas.upenn.edu)
Class Office Hours:
Monday and Wednesday, 3-4:30pm Wednesday 1-3pm
Stiteler B-26 203 Stiteler Hall
Tel: 898-3289
Course description
This course examines the interplay between politics and economics in East Asia. A major course objective is to reconcile the region’s past success with the difficulties experienced in many of these countries more recently. Another primary objective is to consider in what ways and to what degree the growth experiences of the high-performing economies in East Asia shed light on the prospects for long-term success of reforms currently underway in China.
The first half of the course begins by exploring the causes and consequences of the rise of industrial Asia. We begin with some historical background by exploring an important counterfactual related to China, asking why—after a long history of inventions, technological sophistication and social dynamism—growth and industrialization in China lagged behind most of its regional neighbors. We also ask why Japan was the first in the region to industrialize. From there we move to examine a number of alternative explanations for the rapid growth in economies in the region in the postwar period, focusing in on Japan, the Asian "tigers" (South Korea, Taiwan, Hong Kong and Singapore), and the newly industrialized countries (NICs) of Malaysia, Indonesia, and Thailand. We will pay particular attention hereh to the role played by political institutions and the geopolitical context and will also explore why the rapid growth in this region resulted in a more equitable distribution of income than did growth in other regions of the world.
The second half of the course examines the challenges to sustained growth faced by many countries in this region in recent years. The role of national financial systems in supporting or undermining growth, the politics of financial crisis management and financial system reform, and the salience of regional institution-building efforts for promoting sustained regional growth will be explored in depth. The implications of Japan’s prolonged economic recession and of the rise of China for patterns of production and trade in the region will also be explored. The course concludes by examining the challenges faced by China today in its attempt to embrace a more market-oriented economy but avoid the pitfalls of rapid economic growth that many of its regional neighbors have encountered.
The class is targeted at upper-class undergraduates and graduate students. There are no prerequisites. Although a basic grounding in economics and politics would be helpful, the topics covered are accessible to students with widely varying prior knowledge. So, if you have a genuine interest in the issues covered, I encourage you to take the course regardless of your background.
Course policies & requirements
Students are expected to attend all classes and read required texts before each class session. Students – and graduate students, in particular -- are encouraged to explore some of the recommended readings as well. The final 10-15 minutes of every class will be reserved for Q&A and discussion. If sufficient interest, I will also consider holding an optional recitation for graduate students in the course, to delve more deeply into theoretical aspects of the readings and course themes and to cover the recommended readings.
Your final grade will be calculated as follows:
Undergraduates:
In-class quiz on basic geography and facts: 5%
Book critique: 20%
In-class mid-term exam: 35%
Final exam: 40% [Monday, December 15 11am-1pm]
Graduate students:
In-class map and currency quiz: 5%
Book critique: 20%
Mid-term take-home exam: 25%
20-30 page research paper: 50%
The first component of the grade will be an in-class quiz, given in the first 15 minutes of class on Monday September 15. It is important that everyone be familiar with the locations of the countries, capital cities and leaders in the region. An understanding of national borders assists with an understanding of some of the territorial and security issues discussed as a potential challenge to sustained growth in the region in part 2 of the course. Geographical location also factors into issues of trade and investment. Moreover, because financial issues factor so heavily into analysis of recent developments covered in part 2 of the course, it is essential that you be familiar with the currencies in use within the region. On the last page of this syllabus is an outline of all that you need to know for this quiz.
The second component of the grade will be a 5-page critique of a book related to the themes of the course. You are free to select any of the books on the reading list marked with an asterisk "*". The critique must be turned in no later than our final class meeting on December 8. It should summarize the key problem focused on by the book's author, provide an overview the analytical framework and argument made, assess whether the evidence is convincing, and relate the book's findings to course themes and the topic(s) under which it is listed on the reading list.
The third component of the grade will be a mid-term exam. This mid-term exam covers both readings and lectures. For undergraduates, this will be an in-class exam on October 22 requiring short essay responses. For graduate students, it will be a take-home exam, distributed on October 22 and due by 9am on October 25, and requiring an 8-10 page response to a single statement related to the themes in the first half of the course.
The fourth component of the grade will be a final exam for undergraduates and a research paper for graduate students. The undergraduate exam is scheduled for Monday December 15 11am-1pm and will be similar in format to the mid-term exam but more lengthy. Graduate students will prepare a research paper of approximately 20-30 pages on a topic of their own choosing (in consultation with me) in lieu of the final exam taken by undergraduates. This paper should focus primarily on issues dealt with in the second half of the course—namely, evaluation of more recent developments in the region, upon the backdrop of past lessons learned about political economic development. An outline of the research paper is due by Nov.26 at the latest and the final draft is due by5pm on Wednesday December 17. The paper must go beyond simple description to make an argument, drawing on evidence garnered from your research. I have listed recommended readings in addition to required readings in most weeks and students with an interest in exploring in their paper issues dealt with in a particular week might begin with looking at some of the recommended reading.
Office hours
My office hours are Wednesdays 1-3pm and by appointment. My office is located in 203 Stiteler, across the hall from the Political Science Department office. I welcome you to stop by anytime you have questions, concerns or have an interest in discussing further some of the issues covered in the class. I also encourage you to stop by during one of the first weeks of the semester to introduce yourself.
Readings
Most of the chapters of the following book are assigned as required reading. Thus, you may wish to purchase it. It is available in paperback.
Gregory Noble and John Ravenhill, eds., The Asian Financial Crisis and the
Architecture of Global Finance (Cambridge University Press, 2000).
The following book is recommended as general background on many of the issues dealt with in the class:
Iyanatul Islam and Anis Chowdhury, The Political Economy of East Asia (Oxford University Press, 2000).
All required readings will be made available electronically on the course's electronic blackboard site, accessed via http://courseweb.library.upenn.edu. On this login page, you will see two Login buttons on the left. Those with a PennKey click on the button labeled "PennKey Login." Others will click on the other button and use the special account set up for them. After logging in, you will find yourself at a "Penn Courseware" page and should see PSCI214/514 listed. All registered students have access. If anyone encounters difficulty with
access, please contact the blackboard support staff directly at bb-sas@ccat.sas.upenn.edu.
If there is sufficient interest in hard copies, a coursepack will be made available for purchase from Reprographics, in the basement of the Wharton School of Business.
Calendar
September 3 Course organization and overview: What is "political economy"? Why study the political economy of East Asia? Empirical "puzzles" surrounding political and economic development in the region and some basic facts about the region.
Important facts: Japan was the first country in Asia to industrialize and the first to "take off" in terms of rapid growth with equity after WWII. Then came the "four tigers": Hong Kong, Singapore, South Korea and Taiwan. The Newly Industrializing Economies (NIEs) of Thailand, Malaysia and Indonesia followed thereafter.
REQUIRED READING
Henry Rowen, "The Political and Social Foundations of the Rise of East Asia: An Overview," in Henry Rowen, ed., Behind East Asian Growth (Routledge, 1998), pp. 1-36.
RECOMMENDED READINGS
Iyanatul Islam and Anis Chowdhury, The Political Economy of East Asia (Oxford University Press, 2000), pp.1-42.
World Bank Policy Research Report, The East Asian Miracle: Economic Growth and Public Policy (Oxford University Press, 1993), pp.1-77.
PART I: EXPLAINING RAPID GROWTH WITH EQUITY
A. Historical Background
September 8 The dynamics of industrialization and the “China puzzle”
REQUIRED READINGS
Joel Mokyr, "China and Europe" in The Lever of Riches (Oxford University Press, 1990), pp. 209-238.
Justin Yifu Lim, "The Needham Puzzle: Why the Industrial Revolution Did Not Originate in China" Working Paper No.650, Dept. of Economics, UCLA (March 1992), 38 pages.
RECOMMENDED READINGS
Eric Jones et al., Coming Full Circle: An Economic History of the
Pacific Rim, pp. 99-121.
Lloyd Eastman, “Commerce and Manufacturing Under the Impact of the West” in Family, Field and Ancestors (Oxford University Press, 1988), pp. 158-189.
Gary G. Hamilton, “Overseas Chinese Capitalism” in Tu Wei-Ming, ed. Confucian Traditions in East Asian Modernity Harvard University Press, 1996, pp. 328-342.
Ping Chen, "Needham's Question and China's Evolution – Cases of
Nonequilibrium Social Transition" in George P. Scott, ed. Time, Rhythms, and Chaos
in the New Dialogue with Nature. Ames: Iowa State University Press, 1991.
September 10 Why was Japan the first Asian nation to industrialize?
REQUIRED READING
Kozo Yamamura, "Bridled Capitalism and Economic Development in Japan, 1880-1980" in Ramon Myers, ed., The Wealth of Nations in the Twentieth Century, pp. 54-79.
Ann Waswo, “Toward an Industrial Economy” in Modern Japanese Society, 1868-1994 (Oxford University Press, 1996), pp.35-53.
Jennifer Amyx, "Sankin Kotai: Institutionalized Trust as the Foundation for Economic Development in the Tokugawa Era” Asia/Pacific Research Center Working Paper, Stanford University, 1997. Available at
.
RECOMMENDED READINGS
S. Shiraishi and T. Shiraishi, “The Japanese in Colonial Southeast Asia: an Overview”: pp.5-20 in S. Shiraishi and T. Shiraishi, eds. The Japanese in Colonial Southeast Asia, Southeast Asia Program (Cornell University Press, 1993).
Nagahara Keiji and Kozo Yamamura, "Shaping the Process of Unification: Technological Progress in Sixteenth-and Seventeenth-Century Japan" Journal of Japanese Studies, Vol.14, No.1 (Winter 1988), pp. 77-109.
B. Geopolitical Dimensions of the “Miracle”
September 15 Salience of the Pacific War and Occupation for Japanese postwar economic development.
*** Quiz in first 15 minutes of class on geography, currency names, leaders
REQUIRED READINGS
John W. Dower, “The Useful War” in Daedalus Summer 1990, pp.49-70.
Edward J. Lincoln, “The Showa Economic Experience” in Daedalus Summer 1990, pp.191-208.
Hiromitsu Ishi, Ch.1: “The Preconditions for Post-war Economic Growth” in Making Fiscal Policy in Japan: Economic Effects and Institutional Settings (Oxford University Press, 2000), pp. 9-25.
RECOMMENDED READING
Ian Buruma, The Wages of Guilt, pp. 31-46; 112-135.
September 17 Cold War context and the role of the military in development
Important facts: Independence was gained after WWII in the Philippines (1946), South Korea (1948), Indonesia (1949), Malaysia (1957), and Singapore (1963); the military played a key role in the political systems of South Korea, Taiwan, Thailand, Indonesia, the Philippines and Burma in the postwar period.
REQUIRED READINGS
Meredith Jung-En Woo-Cumings, “National Security and the Rise of the Developmental State” in H. Rowen, ed. Behind East Asian Growth (NY: Routledge, 1998), pp.319-337.
“Preface” in Muthiah Alagappa, ed. Coercion and Governance: The Declining Role of the Military in Asia. Stanford, CA” Stanford University Press, 2001, pp. xv-xviii.
Jinsok Kim, “South Korea: Consolidating Democratic Civilian Control” in Muthiah Alagappa, ed. Coercion and Governance: The Declining Role of the Military in Asia. Stanford, CA” Stanford University Press, 2001. pp. 121-142.
Geoffrey Robinson, “Indonesia: On a New Course?” in Muthiah Alagappa, ed. Coercion and Governance: The Declining Role of the Military in Asia. Stanford, CA” Stanford University Press, 2001. pp. 226-256.
RECOMMENDED READINGS
Benedict Anderson, “From Miracle to Crash” London Review of Books
16.8 (April 16, 1998).
Eiichi Katahara, “Japan from Containment to Normalization” in Muthiah
Alagappa,ed. Coercion and Governance: The Declining Role of the Military in
Asia. Stanford, CA” Stanford University Press, 2001. pp.pp. 69-91.
Chih-cheng Lo, “Taiwan: the Remaining Challenges” in Muthiah
Alagappa, ed.Coercion and Governance: The Declining Role of the Military in
Asia. Stanford, CA” Stanford University Press, 2001, pp. 143-161.
Eva-Lotta E. Hedman, “The Philippines: Not So Military, Not So Civil”in
Muthiah Alagappa, ed. Coercion and Governance: The Declining Role of the
Military in Asia. Stanford, CA” Stanford University Press, 2001, pp. 165-186.
James Ockey, “Thailand: The Struggle to Redefine Civil-Military Relations,”
in Muthiah Alagappa, ed. Coercion and Governance: The Declining Role of the Military in Asia. Stanford, CA” Stanford University Press, 2001, pp. 187-208.
** SPECIAL (optional) LECTURE" THURSDAY SEPT. 18. Rm 112, Nursing Educ. Bldg**
Professor David Kang (Dartmouth College) on North Korea
See Prof. Kang's New York Times editorial from July 2003; we will also read some of his other work on Korea and the Philippines later in the semester.
(Center for East Asian Studies Social Science Seminar Series)
C. Neoclassical Economic Explanations for the East Asian “Miracle”
September 22 Savings, investment and technological progress
REQUIRED READINGS
Paul Krugman, “The Myth of Asia’s Miracle” Foreign Affairs, Nov.-Dec. 1994, pp.62-78 and Letters to the Editor in response to this article.
John Bauer, "Economic Growth and Policy in East Asia" in Andrew Mason, ed. Population Change and Economic Development in East Asia. Stanford, CA: Stanford University Press, 2001, pp. 34-60.
RECOMMENDED READING
Robert Wade, “East Asia’s Economic Success: Conflicting Perspectives,
Partial Insights, Shaky Evidence” World Politics 44 (April 1992): pp. 270-320.
Albert Fishlow, et al., Miracle or Design?, pp.1-48.
Chowdhury and I. Islam, The Newly Industrializing Economies of East Asia,
Chapters 1-2.
Walden Belo and Stephanie Rosenfeld, Dragons in Distress, pp.1-16.
Gary Gereffi and Donald Wyman, Manufacturing Miracles, pp.368-403.
Howard Pack, “Technological Change and Growth in East Asia: Macro Versus Micro Perspectives” in Joseph E. Stiglitz and Shahid Yusuf, eds. Rethinking the East Asian Miracle (Oxford University Press, 2001), pp. 95-142.
Yoshio Okunishi, "Changing Labor Forces and Labor Markets in Asia's Miracle Economies" in Andrew Mason, ed. Population Change and Economic Development in East Asia. Stanford, CA: Stanford University Press, 2001, pp. 300-331.
Amy Ong Tsui, "Population Policies and Family Planning Programs in Asia's Rapidly Developing Economies" in Andrew Mason, ed. Population Change and Economic Development in East Asia. Stanford, CA: Stanford University Press, 2001, pp.414-443.
Yujiro Hayami, "Induced Innovation and Agricultural Development in East Asia" in Andrew Mason, ed. Population Change and Economic Development in East Asia. Stanford, CA: Stanford University Press, 2001, pp. 96-120.
September 24 Foreign direct investment and the structure of trade
REQUIRED READINGS
Robert Lawrence and David Weinstein, “Trade and Growth: Import Led or Export Led? Evidence from Japan and Korea” in Joseph E. Stiglitz and Shahid Yusuf, eds. Rethinking the East Asia Miracle (Oxford University Press, 2001), pp. 379-408.
Trevor Matthews and John Ravenhill, “Strategic Trade Policy: the Northeast Asian Experience” in Andrew MacIntyre, Business and Government in Industrialising Asia. Ithaca, NY: Cornell University Press, 1994, pp. 29-90.
RECOMMENDED READINGS
Kozo Yamamura and Walter Hatch, “A Looming Entry Barrier: Japan’s Production Networks in Asia” National Bureau of Asian Research Analysis Vol. 8, No.1 at
Mitchell Bernard and John Ravenhill (1995) “Beyond Product Cycles and Flying Geese: Regionalization, Hierarchy, and the Industrialization of East Asia” World Politics, Vol.47, Issue 2, January, pp.171-209.
D. Political Dimensions of the “Miracle”
September 29 The "developmental state" and strong autonomous bureaucracies
REQUIRED READINGS
Chalmers Johnson, “Market Rationality vs. Plan Rationality” in Daniel Okimoto and Thomas Rohlen, eds. Inside the Japanese System (Stanford University Press, 1988), pp.215-220.
Minxin Pei, “Constructing the Political Foundations of an Economic Miracle” in Henry S. Rowen, ed. Behind East Asian Growth (NY: Routledge, 1998), pp.39-59.
Andrew MacIntyre, “Business, Government and Development: Northeast and Southeast Asian Comparisons” in Andrew MacIntyre, ed. Business and Government in Industrialising Asia. Ithaca, NY: Cornell University Press, 1994, pp. 1-28.
RECOMMENDED READINGS
Alasdair Bowie, “The Dynamics of Business-Government Relations in Industrialising Malaysia” in Andrew MacIntyre, ed. Business and Government in Industrialising Asia. Ithaca, NY: Cornell University Press, 1994, pp. 167-194.
David Kang, “Bad Loans to Good Friends: Money Politics and the Developmental State in Korea,” International Organization vol. 56, no.1 (Winter 2002): pp. 177-207 available at http://www.dartmouth.edu/~dkang/publications/loans.pdf
Stephan M. Haggard, “Business, Politics, and Policy in East & Southeast Asia” in Harry S. Rowen, ed. Behind East Asian Growth (NY: Routledge, 1998), pp.78-104.
Stephan Haggard, Pathways to the Periphery (Ithaca, NY: Cornell University Press, 1990), especially chapters 3-9.
Stephan Haggard. "Politics and Institutions in the World Bank's East Asia," in Albert Fishlow et. al., Miracle or Design? Washington D.C.: O.D.C, 1994. Chapter 3.
David Kang, Tun-jen Cheng and Stephan Haggard, “Institutions and Economic Growth in Korea and Taiwan: the bureaucracy,” Journal of Development Studies 34, no. 6 (August 1998), pp. 87-111.
* David Kang, Crony Capitalism: Corruption and Development in South Korea and the Philippines (Cambridge University Press, 2002).
Andrew MacIntyre, ed. Business and Government in Industrialising Asia. Ithaca, NY: Cornell University Press, 1994.
October 1 The " network" or "societal" state; concepts of "embedded autonomy"
REQUIRED READINGS
Daniel Okimoto, “Japan, the Societal State” in Daniel Okimoto and Thomas Rohlen, eds. Inside the Japanese System (Stanford University Press, 1988), pp.211-215.
* Brief excerpt from Chapter 1 of Jennifer Amyx, Japan's Financial Crisis: Institutional Rigidity and Reluctant Change (Princeton, NJ: Princeton University Press, forthcoming 2004.
* Hongying Wang, “Chapter 5: Personal Networks and Foreign Investment” in Weak State, Strong Networks: The Institutional Dynamics of Foreign Direct Investment in China (Oxford University Press, 2001), pp. 87-113.
* Brief excerpt from Peter Evans, Embedded Autonomy: the State and Industrial Transformation (Princeton, NJ: Princeton University Press, 1995).
RECOMMENDED READING
Jeffrey Broadbent and Yoshito Ishio, “The ‘Embedded Broker’ State: Social Networks and Political Organization in Japan” in Mark Fruin, ed. Networks, Markets, and the Pacific Rim (NY: Oxford University Press, 1998), pp.79-108.
Mark Fruin, "Introduction" in Mark Fruin, ed. Networks, Markets, and the Pacific Rim. New York: Oxford University Press, 1998.
October 6 Industrial policy debate
REQUIRED READING
Gregory Noble (1989) "The Japanese Industrial Policy Debate" in Stephan
Haggard and Chung-in Moon, eds. Pacific Dynamics (Boulder, Colorado: Westview Press), pp.53-95.
RECOMMENDED READINGS
* Eun Mee Kim, Big Business, Strong State: Collusion and Conflict in South Korean Development, 1960-1990 (State University of New York Press, 1997).
K.S. Jomo, “Rethinking the Role of Government Policy in Southeast Asia” in Joseph E. Stiglitz and Shahid Yusef, eds. Rethinking the East Asian Miracle (Oxford University Press, 2001), pp. 461-508.
Robert Wade, “The Role of Government in Overcoming Market Failure: Taiwan, Republic of Korea and Japan,” in Helen Hughes, ed. Achieving Industrialization in East Asia, pp.129-163.
Steven Vogel, chapter 1 in Freer Markets, More Rules: Regulatory Reform in Advanced Industrial Countries (Ithaca, NY: Cornell University Press, 1996), pp. 9-24.
Daniel Okimoto, “The Politics of Japanese Industrial Policy” in Between MITI and the Market (Stanford University Press, 1989), pp.177-228.
Yoshihiko Morozumi, “A Statement Against Free Competition” in Daniel Okimoto and Thomas Rohlen, eds. Inside the Japanese System (Stanford University Press, 1988), pp.80.
Gordon White, Riding the Tiger (Stanford University Press, 1993), pp.21-84.
Lawrence B. Krause, “Hong Kong and Singapore: Twins or Kissing Cousins?” Economic Development and Cultural Change, Vol. 36, No.3 (supplement) (April 1988), pp.S45-S66.
Chalmers Johnson, “Political Institutions and Economic Performance,” in F.C. Deyo, ed., The Political Economy of the New Asian Industrialism, pp.136-64.
Daniel Okimoto, Between MITI and the Market (Stanford University Press, 1989).
Steven Vogel, Freer Markets, More Rules: Regulatory Reform in Advanced Industrial Countries (Ithaca, NY: Cornell University Press, 1996), chapters 2-3, 7-9.
October 8 One-party dominance, labor rights and limited democracy
Important fact: One-party rule was part of the backdrop to rapid growth in Malaysia, Singapore and Japan.
REQUIRED READINGS
Stephan Haggard, “Authoritarianism and Democracy: Political Institutions and Economic Growth Revisited” in Pathways to the Periphery (Cornell University Press, 1990), pp.254-270.
Tun-jen Cheng, “Political Regimes and Development Strategies: South Korea and Taiwan” in Gereffi and Wyman, eds. Manufacturing Miracles, pp.139-178.
RECOMMENDED READING
* Seung-Ho Kwon and Michael O’Donnell, The Chaebol and Labour in Korea: The development of Management Strategy by Hyundai (Routledge, 2001).
Frederic Deyo, “State and Labor: Modes of Political Exclusion in East Asian Development” in Frederic Deyo, ed. The Political Economy of the New Asian Industrialism.
Daniel I. Okimoto, “Government Institutions and Policy Making,” in D. Okimoto & T. Rohlen, eds., Inside the Japanese System, pp.171-182.
E. Social and Cultural Dimensions of the East Asian “Miracle”
October 15 Distinctive modes of social and firm organization in East Asia
REQUIRED READINGS
Ronald Dore, “Goodwill and the Spirit of Market Capitalism” in Daniel Okimoto and Thomas Rohlen, eds. Inside the Japanese System (Stanford University Press, 1988), pp.90-99.
Richard Pascale and Thomas Rohlen, “The Mazda Turnaround,” in Daniel Okimoto and Thomas Rohlen, eds., Inside the Japanese System (Stanford University Press, 1988), pp.149-169.
Martin Whyte, “The Social Roots of China’s Economic Development,”
China Quarterly, December 1995, No. 144, pp.999-1019.
RECOMMENDED READINGS
Thomas Rohlen, For Harmony and Strength: Japanese White-Collar Organization In Anthropological Perspective (University of California Press), pp.34-61.
Ronald Dore, Taking Japan Seriously (Stanford University Press, 1989), pp.85-107.
James Abegglen and George Stalk, Kaisha: The Japanese Corporation (Basic Books, 1985), pp.181-213.
Gary Hamilton and Nichole Biggart, “Market, Culture and Authority: A Comparative Analysis of Management and Organization in the Far East,” American Journal of Sociology, Vol.94 Supplement (1988), pp.52-94.
Masahiko Aoki. Information, Incentives, and Bargaining in the Japanese Economy. New York: Cambridge University Press, 1988.
Masahiko Aoki and Hugh Patrick, eds. The Japanese Main Bank System: Its Relevance for Developing and Transforming Economies. New York: Oxford University Press, 1994.
** SPECIAL (optional) LECTURE: Noon THURSDAY, OCTOBER 16 **
Professor Edward Steinfeld of MIT on Chinese State Owned Enterprise
Reforms (Center for East Asian Studies Social Science Seminar Series; location TBA)
We will read Professor Steinfeld's analysis of reform in China's state-owned enterprises later in the course.
October 20 East Asian values, human resource development and education policies
REQUIRED READINGS
Siu-lun Wong, “The Applicability of Asian Family Values,” in Peter Berger and Hsin-Huang Michael Hsiao, eds., In Search of an East Asian Development Model (Transaction Books, 1988), pp.134-152.
Dennis A. Ahlburg and Eric R. Jensen, "Education and the East Asian Miracle" in Andrew Mason, ed. Population Change and Economic Development in East Asia. Stanford, CA: Stanford University Press, 2001, pp. 231-253.
RECOMMENDED READINGS
Thomas Rohlen, “Learning: The Mobilization of Knowledge in the Japanese Political Economy”, in Shumpei Kumon and Henry Rosovsky, eds., The Political Economy of Japan, Vol.3: Cultural and Social Dynamics (Stanford University Press, 1992), pp.321-363.
Harold W. Stevenson, “Human Capital: How the East Excels,” in H. Rowen, ed., Behind East Asian Growth, pp. 147-164.
Kozo Yamamura, "Ie Society as a Pattern of Civilization" (1984) Journal of Japanese Studies, 10:2, pp.279-363 [particularly the beginning and end].
Naohiro Ogawa and Noriko Tsuya, “Demographic Change and Human Resource Development in the Asia-Pacific Region: Trends of the 1960s to1980s and Future Prospects,” in N. Ogawa, G. Jones and J. Williamson, eds. Human Resources In Development Along the Asia-Pacific Rim (Oxford University Press, 1993), pp.21-65.
October 22 Mid-term Exam
(Taken in-class by undergraduates; distributed as a take-home exam to graduate students and due by 9am on October 25. Graduates should submit their exam responses as an e-mail attachment to the instructor)
PART II: CHALLENGES TO SUSTAINED GROWTH WITH EQUITY
A. Post-Cold War security, environment and energy issues
October 27 Regional security issues: territorial disputes
REQUIRED READINGS
Ming Wan, “Economic Interdependence and Economic Cooperation: Mitigating Conflict and Transforming Security Order in Asia” pp. 280-310 in Muthiah Alagappa, ed. Asian Security Order: Instrumental and Normative Features. Stanford, CA: Stanford University Press, 2003.
David Kang, “Acute Conflicts in Asia After the Cold War: Kashmir, Taiwan, and Korea” pp. 349-379 in Muthiah Alagappa, ed. Asian Security Order: Instrumental and Normative Features. Stanford, CA: Stanford University Press, 2003.
Jianwei Wang, “Territorial Disputes and Asian Security: Sources, Management, and Prospects” pp. 380-423 in Muthiah Alagappa, ed. Asian Security Order: Instrumental and Normative Features. Stanford, CA: Stanford University Press, 2003.
RECOMMENDED READINGS
Muthiah Alagappa, “Introduction: Predicatability and Stability Despite Challenges” pp. 1-30 in Muthiah Alagappa, ed. Asian Security Order: Instrumental and Normative Features. Stanford, CA: Stanford University Press, 2003.
Chalmers Johnson and E.B. Keehn, “The Pentagon’s Ossified Strategy” Foreign Affairs, vol. 74, No.4 (July/August 1996) pp.103-114
Ted Galen Carpenter, “From Intervenor of First Resort to Balancer of
Last Resort,” in Selig Harrison & Clyde Prestowitz, eds., Asia After the “Miracle”, pp. 293-311.
Samuel Huntington, The Clash of Civilizations, pp.218-238; 301-321.
Aaron L.Friedberg, “Recipe for Rivalry: Prospects for Peace in a Multipolar Asia,” in Michael E. Brown, et. al., eds, East Asian Security, pp.3-31.
Paul Bracken (1999) Fire in the East: the Rise of Asian Military Power and the Second Nuclear Age (NY: HarperCollins), pp.1-36; 149-170.
Bruce Cumings (1999) "The Asian Crisis, Democracy, and the End of
'Late' Development" in T.J. Pempel, ed. The Politics of the Asian Economic Crisis (Ithaca, NY: Cornell University Press), pp.17-44.
Christopher McNally and Charles Morrison, eds. Asia Pacific Security Outlook 2002 NY: Japan Center for International Exchange, 2002,
October 29 Regional security issues: terrorism. energy and the environment
REQUIRED READINGS
Eric Teo Chu Cheow, “Terrorists Find New Haven in Quiet Corner of Asia” The Japan Times (August 1, 2003).
Nate Jones, “Walking a Terrorism Tightrope in Indonesia” Institute for Global Engagement (July 17, 2003), available at http://www.globalengagement.org/issues/2003/07/indonesia.htm.
Kent Calder, “Looming Energy Insecurities” and "Asia and the Nuclear Threshold" in Pacific Defense: Arms, Energy, and America’s Future (William Morrow & Company, 1996), pp.43-82.
* Peter Dauvergne, Shadows in the Forest (Cambridge, Mass.: The MIT Press), “Introduction” and “Conclusion”: pp.1-19 and 165-182.
RECOMMENDED READINGS
"China's Environment Special Issue" #156 (Dec. 1998) China Quarterly.
Emma Xiaoqin Fan. “SARS” Economic Impact and Implications
Asian Development Bank ERD Policy Brief No. 15, May 2003. Available at
Richard J. Ellings and Aaron L. Friedberg, eds. Strategic Asia 2002-03: Asian Aftershocks. Seattle, Washington: The National Bureau of Asian Research, 2002.
B. The Regional Engine of Growth Sputters
November 3 Japan’s “lost decade” and financial crisis
REQUIRED READINGS
William Grimes (2001) “Chapter 5: Inflating and Bursting the Bubble, 1988-92” in Unmaking the Japanese Miracle: Macroeconomic Politics, 1985-2000 (Cornell: Cornell University Press), pp. 136-161.
Jennifer Amyx (2001) "Informality and Institutional Inertia: the case of Japanese financial regulation" Japanese Journal of Political Science, pp. 47-66.
RECOMMENDED READINGS
Richard Katz, Japan, the System that Soured (M.E. Sharpe, 1998), especially chapters 4-5.
* William Grimes (2001) Unmaking the Japanese Miracle: Macroeconomic Politics, 1985-2000 (Cornell: Cornell University Press).
November 5 Why Can’t Japan get back on track?
REQUIRED READINGS
Leonard Schoppa (2001) "Japan, the Reluctant Reformer" Foreign Affairs September/October Vol.80, No.5, pp.76-90.
* Excerpt from Jennifer Amyx, Japan’s Financial Crisis: Institutional Rigidity and Reluctant Change. Princeton, NJ: Princeton University Press, forthcoming 2004.
* Excerpt from Aurelia George Mulgan, Japan's Failed Revolution: Koizumi and the Politics of Economic Reform. Canberra: Asia Pacific Press, 2002.
RECOMMENDED READINGS
Adam Posen, Restoring Japan’s Economic Growth (Washington, DC: Institute for International Economics, 1998).
Akiyoshi Horiuchi, “Japan’s Bank Crisis and the Issue of Governance” in Peter Drysdale, ed., Reform and Recovery in East Asia: The Role of the State and Economic Enterprise (Routledge, 2000), pp. 28-58.
C. The Asian Financial Crisis and Recovery
November 10 What happened?
Viewing of PBS video, The Crash, followed by lecture.
REQUIRED READINGS
Gregory Noble and John Ravenhill, “Causes and Consequences of the Asian Financial Crisis” in Gregory Noble and John Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance (Cambridge University Press, 2000),pp. 1-35.
Stephen Grenville, “Capital Flows and Crises” in Gregory Noble and John Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance (Cambridge University Press, 2000),pp. 36-56.
Natasha Hamilton-Hart, “Chapter 6: Governing Open Economies” in Asian States, Asian Bankers: Central Banking in Southeast AsiaIthaca, NY: Cornell University Press, 2002, pp. 129-153.
RECOMMENDED READINGS
T.J. Pempel, ed. The Politics of the Asian Economic Crisis (Cornell University Press, 1999).
The World Bank (1998) East Asia: The Road to Recovery, pp.xiii-xv; 1-18; 33-51; 73-98.
Ross H. McLeod and Ross Garnaut, eds. East Asia in Crisis: From Being a Miracle to Needing One? (NY: Routledge, 1998).
Paul Krugman, The Return of Depression Economics, pp. 21-37; 60-101.
* Natasha Hamilton-Hart, Asian States, Asian Bankers: Central Banking in Southeast Asia. Ithaca, NY: Cornell University Press, 2002.
November 12 Explaining Cross-national variation in crisis response with political variables
REQUIRED READINGS
Andrew MacIntyre, “Institutions and Investors: The Politics of the
Economic Crisis in Southeast Asia” International Organization. Volume 55, No.1.
Winter 2001, pp. 81-122.
Gregory Noble and John Ravenhill, “The Good, the Vad and the Ugly?
Korea, Taiwan and the Asian Financial Crisis” in Gregory Noble and John
Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance (Cambridge University Press, 2000, pp. 80-107.
Natasha Hamilton-Hart, “Indonesia: Reforming the Institutions of
Financial Governance?” in Gregory Noble and John Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance (Cambridge University Press, 2000),pp. 108-131.
November 17 Role of the IMF and Japan in Crisis Management
REQUIRED READINGS
Tatsuo Yanagita, “International Monetary Fund Conditionality and the
Korean Economy in the Late 1990s,” in Peter Chow and Bates Gill, Weathering the
Storm: Taiwan, Its Neighbors, and the Asian Financial Crisis (Brookings Institution
Press, 2000), pp. 19-38.
Frank Flatters, “Thailand, the International Monetary Fund, and the
Financial Crisis: First In, Fast Out?” in Peter Chow and Bates Gill, Weathering the
Storm: Taiwan, Its Neighbors, and the Asian Financial Crisis (Brookings Institution
Press, 2000), pp. 71-120.
Jennifer Amyx (2000). “Political Impediments to Far-reaching Banking
Reforms in Japan: Implications for Asia” in Gregory Noble and John Ravenhill, eds.,
The Asian Financial Crisis and the Architecture of Global Finance (Cambridge University Press, 2000),pp. 132-151.
RECOMMENDED READINGS
* Paul Bluestein (2001) The Chastening: Inside the Crisis that Rocked the
Global Financial System and Humbled the IMF (NY: Public Affairs).
November 19 Toward crisis prevention and better crisis management: regional institution-building and reforming institutions of global governance
REQUIRED READINGS
Barry Eichengreen, “The International Monetary Fund in the Wake of the Asian Crisis” in Gregory Noble and John Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance (Cambridge University Press, 2000), pp. 170-191.
Miles Kahler, “The New International Financial Architecture and its Limits” in Gregory Noble and John Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance (Cambridge University Press, 2000), pp. 235-260.
Jennifer Amyx, “Japan and the Evolution of Regional Financial Arrangements in East Asia” (Forthcoming Dec. 2003) in Ellis Krauss and T.J. Pempel, eds. Beyond Bilateralism: U.S.-Japan Relations in the New Asia-Pacific (Stanford, CA: Stanford University Press).
RECOMMENDED READINGS
Reuven Glick, “Fixed or Floating? Is it still possible to manage in the middle?” in Gordon deBrouwer, ed. Financial Markets and Policies in East Asia. London: Routledge, 2002, pp. 200-234.
Peter Katzenstein, “Introduction: Asian Regionalism in Comparative Perspective” in Peter Katzenstein and Takashi Shiraishi, eds. Network Power: Japan and Asia (Ithaca: Cornell University Press, 1997), pp.1-44.
Takashi Terada, “Constructing an ‘East Asian’ concept and growing regional identity: from EAEC to ASEAN+3 The Pacific Review, Vol. 16 No.2 2003, pp. 251-277.
Heon-Seok Yu. “Explaining the Emergence of New East Asian Regionalism: Beyond Power and Interest-based Approaches” Asian Perspective Vol.27, No.1 2003, pp. 261-288.
November 24 Politics of reforming state and enterprise relations
REQUIRED READINGS
Meredith Woo-Cumings, “Miracle as Prologue: The State and the Reform of the Corporate Sector in Korea” in Joseph E. Stiglitz and Shahid Yusuf, eds. Rethinking the East Asian Miracle (Oxford University Press, 2001), pp.343-377.
* Stephan Haggard, Chapters 2-3 in The Political Economy of the Asian Financial Crisis (Institute for International Economics, 2000), pp. 47-138.
RECOMMENDED READING
Masahiro Kawai, “Bank and corporate restructuring in crisis-affected East Asia: from systemic collapse to reconstruction” in Gordon deBrouwer,ed. Financial Markets and Policies in East Asia. London: Routledge, 2002, pp. pp. 82-121.
Tetsuji Okazaki, “The Government-Firm Relationship in Postwar Japanese Economic Recovery: Resolving the Coordination Failure by Coordination in Industrial Revitalization,” in Masahiko Aoki, Hyung-Ki Kim, and Masahiro Okuno-Fujiwara, eds. The Role of Government in East Asian Development: Comparative Institutional Analysis (Clarendon Press, 1997), pp. 74-100.
November 26 Politics of non-performing loan clean-up and financial system reform
Graduate students: outline of research paper due
REQUIRED READINGS
Joel A. Binamira and William C. Haworth, “Debt Restructuring in East Asia: Government and the Corporate Sector,” in Charles Adams, Robert Litan, and Michael Pomerleano, Managing Financial and Corporate Distress (The Brookings Institution, 2000), pp. 137-148.
Stefan Ingves and Dong He, “Facilitating Bank and Corporate Restructuring: The Role of Government,” in Charles Adams, Robert Litan, and Michael Pomerleano, Managing Financial and Corporate Distress (The Brookings Institution, 2000), pp. 245-266.
David Scott, “Government as Managers of Systemic Financial Crisis: Controlling Costs by Integrating Bank and Corporate Restructuring” in Charles Adams, Robert Litan, and Michael Pomerleano, Managing Financial and Corporate Distress (The Brookings Institution, 2000), pp. 267-298.
RECOMMENDED READINGS
Dominic Wilson, “Recent developments in Asian financial markets” in Gordon deBrouwer, ed. Financial Markets and Policies in East Asia. London: Routledge, 2002, pp. 17-31.
Ronald McKinnon, “After the Crisis, the East Asian Dollar Standard Resurrected: An Interpretation of High Frequency Exchange Rate Pegging” in Joseph E. Stiglitz and Shahid Yusuf, eds. Rethinking the East Asian Miracle (Oxford University Press, 2001), pp. 197-246.
Douglas Guthrie, Dragon in a Three Piece Suit (Cambridge University Press, 2001), Chapters 6-8.
Heather Smith, “The state, banking, and corporate relationships in Korea and Taiwan,” in Peter Drysdale, ed. Reform and Recovery in East Asia: the Role of the State and Economic Enterprise (Routledge, 2000), pp. 59-98.
Bhanupong Nidhiprabba and Peter Warr, “Thailand’s Experience with Reform in the Financial Sector” in Peter Drysdale, ed. Reform and Recovery in East Asia: The Role of the State and Economic Enterprise, pp. 120-145.
PART III: CHINA AND THE FUTURE OF EAST ASIAN GROWTH
December 1 Rapid growth in China and Chinese economic reforms
REQUIRED READINGS
Barry Naughton, “China’s Transition in Economic Perspective,” in Merle Goldman and Roderick MacFarquhar, eds. The Paradox of China’s Post-Mao Reforms (Harvard University Press, 1999), pp. 30-46.
Jean Oi, “The Role of the Local State in China’s Transitional Economy” The China Quarterly No. 144 (December 1995), pp.1132-1150.
Dwight Perkins, “Persistence of the Past”, China’s Modern Economy in Historical Perspective (Stanford University Press, 1975), pp. 1-18.
RECOMMENDED READINGS
Barry Naughton (1999) "China: Domestic Restructuring and a New Role in Asia" in T.J. Pempel, ed. The Politics of the Asian Economic Crisis (Ithaca, NY: Cornell University Press), pp.203-223.
Jean C. Oi, Rural China Takes Off: Institutional Foundations of Economic Reform (University of California Press, 1999).
Lisa Keister, Chinese Business Groups: The Structure and Impact of Interfirm Relations During Economic Development (Oxford University Press, 2000).
December 3 Lessons and challenges for China in transitioning to a market economy: reform of state-owned enterprises
REQUIRED READINGS
Nicholas Lardy, China’s Unfinished Revolution (Brookings, 1998), Chapter 1: “China’s Economic Reform Strategy”, pp.1-20.
Edward Steinfeld, “Introduction: China’s Ailing State Enterprises” in Forging Reforms in China: The Fate of State-Owned Industry (Cambridge University Press, 1999), pp. 1-24.
Jean C. Oi, “After State Socialism: Welfare Constraints on Privatization in China,” Unpublished Manuscript 2002.
RECOMMENDED READINGS
Nicholas Lardy, China’s Unfinished Revolution (Brookings, 1998), Chapter 2: “The State-Owned Enterprise Problem”, pp. 21-58.
Fan Gng, “Financial Market Liberalisation and Economic Stability in China” in Gordon deBrouwer, ed. Financial Markets and Policies in East Asia. London: Routledge, 2002,
* Douglas Guthrie, Dragon in a Three Piece Suit: The Emergence of Capitalism in China (Princeton University Press, 1999).
* Edward Steinfeld, Forging Reforms in China: The Fate of State-Owned Industry (Cambridge University Press, 1999).
* Xiaobo Lu, Cadres and Corruption: The Organizational Involution of the Chinese Communist Party. Stanford, CA: Stanford University Press, 2000.
December 8 Lessons and challenges for China in sustaining growth: financial liberalization and financial reforms
[Class will also conclude with a review of course themes]
** Book critique due by today**
REQUIRED READINGS
Collection of newspaper articles related to pressures on China to revalue the yuan and liberalize the currency account.
Collection of newspaper articles on rising trade frictions involving China and on accusations that China is draining foreign direct investment from Southeast Asia.
Walter Russell Mead, “East Asia Needs a New Growth Strategy” Wall Street Journal (April 17, 1997).
FINAL EXAM FOR UNDERGRADS: 11am-1pm Monday, December 15
RESEARCH PAPER DUE for graduate students by 5pm, Wed. December 17
Information covered in the in-class quiz
[You must be able to label all of the countries and capital cities on a map (you will not be given a list of country or city names to choose from); you must also be able to give the name of the current government leader of each country, with the exception of the last 5 listed]
NORTHEAST ASIA (5)
Countries Capital Cities Currency Current Gov't leader
Japan Tokyo Japanese yen PM KOIZUMI Jun’ichiro
China Beijing Chinese yuan Pres. HU Jintao
(also called renminbi)
South Korea Seoul South Korean won Pres. ROH Moo-hyun
North Korea Pyongyang North Korean won Supreme Leader KIM Jong-il
Taiwan Taipei Taiwan dollar Pres. CHEN Shuibian
Special administrative
area of China Hong Kong Hong Kong dollar Chief Exec. TUNG Chee-hwa
SOUTHEAST ASIA (10)
Countries Key Cities Currency Current Gov't leader
Singapore Singapore Singapore dollar PM GOH Chok Tong
Malaysia Kuala Lumpur Malaysian ringgit PM MAHATHIR Mohamad
Thailand Bangkok Thai baht PM THAKSIN Shinawatra
Indonesia Jakarta Indonesian rupiah Pres.MEGAWATI
Sukarnoputri
Philippines Manila Philippine peso Pres. Gloria ARROYO
[For the following countries, you need only be able to locate them on the map and name their capital cities. ]
Vietnam Hanoi Vietnamese dong Pres. Trong Duc Luong
Myanmar (Burma) Rangoon Myanmar kyat Senior General Than Shwe
Brunei Bandar Seri Begawan Brunei dollar Sultan Haji Hhassand Bolkiah
Cambodia Phnom Penh Cambodian riel PM Hun Sen
Laos Vientiane Lao kip Pres. Gen. Khamtay Siphandon
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