E-Book Overview
For many developing countries economic growth is an elusive quest. Both economists and policymakers have long known that issues such as education, investment and infrastructure are necessary ingredients for development and yet only a very small number of countries seem to be able to come up with the right mix of these ingredients. Bryan Ritchie demonstrates how political relationships among government, business, academic and labor leaders create different incentives for economic actors to make key decisions to promote economic upgrading and sustainable development. He reveals how these decisions affect matters such as bureaucratic structures, the language of education, a focus on technology and innovation, and the inclusion of labor in business strategy. These shape the institutional structures that in turn create the foundation of government policy. This insightful study shows that whether the political relationships that form are beneficial, or detrimental, to economic upgrading depends critically on levels of systemic vulnerability, a combination of resource endowments, domestic conflict and external military security. Systemic Vulnerability and Sustainable Economic Growth will be warmly welcomed by academics and researchers of political science, economics - development economics particularly - and Asian studies. Policymakers will find invaluable insights in to how government bodies can successfully incorporate actors from the private sector. The book will also appeal to business leaders wishing to know why policymakers act the way they do.
E-Book Content
Systemic Vulnerability and Sustainable Economic Growth Skills and Upgrading in Southeast Asia
Bryan K. Ritchie Professor of International Relations, James Madison College, Michigan State University, USA
Edward Elgar Cheltenham, UK • Northampton, MA, USA
© Bryan K. Ritchie 2010 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA
A catalogue record for this book is available from the British Library Library of Congress Control Number: 2009940744
ISBN 978 1 84844 822 3
02
Printed and bound by MPG Books Group, UK
Contents List of figures List of tables Abbreviations Preface 1 2 3 4 5 6 7 8
vi vii viii xi
Introduction 1 The political economy of technical intellectual capital formation 16 Some preliminary evidence 36 The origin of initial institutional decisions 66 Coalitions and initial decisions during state-building 92 The legacies of initial choices 116 Institutional formation and skills development 150 The Asian financial crisis and technical intellectual capital formation 190
References Index
208 227
v
Figures 1.1 2.1 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 5.1 5.2 5.3 8.1
Argument outline Detailed argument outline Clusters of developmental states Marginal effect of MILITARY on W22 as COMMEX changes Marginal effect of COMMEX on W22 as MILITARY changes Marginal effect of MILITARY on GINI2 as COMMEX changes Marginal effect of COMMEX on GINI as MILITARY changes Marginal effect of ELF60 on W22 as COMMEX changes Marginal effect of COMMEX on W22 as ELF60 changes Marginal effect of ELF60 on GINI as COMMEX changes Marginal effect of COMMEX on GINI as ELF60 changes Marginal effect of MILITARY on W22 as ELF60 changes Marginal effect of ELF60 on W22 as MILITARY changes Marginal effect of ELF60 on GINI as MILITARY changes Marginal effect of MILI