5/22

There is no denying that East Asia’s economic accomplishments, especially when described by Stiglitz, have been great. But while Stiglitz’s focuses on the shiny aspects, he largely dismisses many implications of the “centralized authoritarian development (Broad, Cavanaugh, Bello 393)” that guided the growth. They point to the large number of labor disputes that broke out in the late 1980’s after several decades of growth and environmental harm accompanied buy little change in wages. The answer to this problem is a more representative government.

In order to establish and maintain a well-functioning economy, one must deal with the “costs of transacting,” which have no part in neo-classical economic theory, but are very much a part of every day life (North). Because good governments are the most effective way of dealing with this issue, it seems obvious that a more representative government would better disperse problems associated with command development by giving more facets of society an “in” on dealing with transaction costs and finding the “correct balance” between government and market (Stiglitz). Broad, Cavanaugh and Bello point to citizen’s initiatives as an important way for the voices of all those with interest to be heard.

Overall, it is the people of a country that are most important in determining patterns of development. The better educated the population, the better able they are to make informed decisions regarding what they want the role of government to be in the daily lives. As an American, I would likely find the East Asian governmental practices of pervasive government intervention in the economy problematic because I have been taught that I have the right to make my own choices and forge my own successful path. Likewise, I am inclined to support decisions such as to move away from micro-managing agriculture and handing land over to families to cultivate as they see fit (Stiglitz 49).

I think that the prospect of the economic advancement at the individual level is an aspect of widespread income growth that is rarely mentioned yet extremely important. If each member of society can feel that “moving up” is within their grasp, they will be much more inclined to strive toward this goal, rather than that of mere survival. But improvements in government, education and overall economic advancement are often necessary before developing nations can get to a point where they can make solid decisions and work toward such advancement on their own. It is a vicious cycle that, in order to be stopped, must be controlled long enough to establish an exit point from which countries can begin their climb out. Over the years, many plans have been tried… while none has been perfect, we are continuing to learn from each one. A perfect exit plan from this hellish mess of poverty, undereducation and disorganization may never be cultivated… but even offering an imperfect place from which countries can begin their journey out may be better than nothing.