Answer to Question #219888 in Economics for Lily

Question

Describe the strategy that East Asia used from the 1970s to the 1990s to achieve high rates of economic growth. Can the Asian miracle continue in the new millennium?

Answer 1

Rising investment and savings rates combined with the spread of education were the underlying factors. Growth was driven by rapid industrialisation, often led by exports and linked with changes in the composition of output and employment.

Contemporary Asia’s economic miracle rests on a less-discussed strategic miracle: the maintenance of peace and order. So, if there will be no serious conflicts between countries, such as China and US or North and South Korea, then the Asian miracle may continue in the new millennium.