ABSTRACT
The East Asian Miracle is generally regarded as one of the most successful development paradigms in the twentieth century.. In the making of the miracle, Japan, Korea, and Taiwan, among other nations, all experienced rapid transformation from rural to urban societies based on industry rather than agriculture. During their takeoff periods, large portions of the rural population moved off the farm and into manufacturing jobs, fueling sharp rises in productivity and income. Almost as important, during the industrialization and urbanization phases, leaders were able to reduce poverty among those left in rural areas and maintain a healthy agricultural sector, thereby attenuating trends towards increased inequality (Johnston, 1970). The ability to increase-or at least maintain-the income levels of those left behind in rural areas during and after the initial waves of migration played a key role in giving the rural population the means to sustain the drive to modernization. The process of rapid urbanization and industrializes depended in no small way on the human capital and other investments made by rural households.
