chapter  11
15 Pages

Responsible development in the Islamic Periphery: regulation, competition and public policy

Suppose it was the year 1950 and a fifty-year forecast was wanted of the development prospects of Turkey, Malaysia and Japan. How would these countries be ranked? Japan would most likely be in the last place in view of her war-damaged economy and occupation by the United States. Resource-rich Malaya (as it was called at the time) would be better placed, but the escalating communist insurgency would cast a serious doubt about her stability and prospects. On the other hand, Turkey, which came out of the Second World War intact thanks to her neutrality and enjoyed a healthy trade balance would appear quite impressive. In terms of income per capita, Japan was behind both Malaya and Turkey. In 1952 at the outset of the Korean War, the Japanese per capita annual income was $162 (Okita 1980:108), the Turkish figure was $169 (Singer 1977:444-5) and the Malayan figure, at about $250 ‘was the highest in the Far East’. (IBRD 1955:13).