ABSTRACT
The phenomenal development in East Asia separates this region from the rest of the developing world. Many, sometimes contradictory, explanations have been put forward. Some have emphasized the efficiency of market forces (see e.g. Burenstam Linder 1986), others the active role of governments (Sachs 1986). What is the least controversial is that a relatively great openness to trade has been a key factor in establishing high investment efficiency, savings and growth (Balassa 1982, 1991). Still, certain countries, such as the Philippines, have not succeeded in successfully pursuing such a strategy. It remains to be fully understood what has enabled most of the East Asian countries to do so.
