ABSTRACT
There are no miracles in the four East Asian economies, but they have adopted a paradigm that sets economic growth as the goal of their society. Emphasis has been given not to income equality, but rather to reduction in poverty and efforts to make available as many equal opportunities as possible. Whereas private investment has concentrated on output and capacity expansion, social investment has concentrated on infrastructure and capital that either helped to increase output capacity further or was favorable to the expansion of future productivity. Handsome social welfare provisions are not available, but a “survival” net has been assured. Entrepreneurial and hard-working efforts are treasured, while reliance on social welfare by individuals is discouraged. The government plays an active, but often indirect, role. It provides “fertilizers” as encouragement or incentives for individuals and business organizations to progress. The higher the degree of economic progress, the more active the business sector will be and the resultant rise in employment will, on the one hand, alleviate the need for welfare and, on the other hand, enlarge the government revenue pie. An effective and sound system for the rule of law has permitted the private sector to generate as many business and economic opportunities as possible.
