The role of the state in economic development: Japan, South Korea, and Taiwan

On the role of the state, there are two schools of thought. The bureaucratic\ud regulation thesis regards the state as a dominant force in incorporating\ud various resources into a positive thrust for economic development. The market regulation thesis, on the other hand, emphasizes\ud the quick response to market changes and the adept grasp of trade\ud and production opportunities from Asian industrialists.\ud Both, however, agree that the state plays an important role in the East Asian miracle.\ud This paper provides a comprehensive analysis of the role of the state in\ud economic development in Japan, South Korea, and Taiwan. Through such an analysis we hope to gain a thorough understanding of why and how an\ud essentially undemocratic government pushes private initiatives for economic\ud growth and social progress