by Jeanine

Created on: August 04, 2008

Capitalist Development in the Asian Pacific Rim States

Capitalist-development is a common approach to economic success in modern industrial nations. World War II brought the coming of Capitalism into the Asian Pacific. Industrialization was seen as an important factor for these countries for their development. This lack of industrialization within the Asian Pacific has held them back from any successful economic development. China, South Korea and Taiwan have been known as miracle economies due to their attempts for triumphant capitalist development. Asian Pacific rim states saw Capitalist-development as an important paradigm in order to achieve economic well-being in the global market.

Capitalism is a social-structural goal sought after by the modern world. It is a form of planned industrialization. The goals of higher living standards, welfare improvements and economic well being were achievable for some of the Asian Pacific countries through capitalist development. The capitalist-development model has been carried out differently between neighboring countries. China attempted to follow a Soviet style capitalist model until it proved itself inefficient, Taiwan followed a model which borrowed some aspects of the European or American models and South Korea closely followed Japan's very successful model.Karl Marx studied Capitalism during his time and he believed that Capitalism was "the road to the higher phase of communism."(Marx and Engels, 19)China also shared this belief unlike Taiwan and South Korea. These countries, except China, came from a background of limited natural resources so their growth was based on the availability of labor, which China, Taiwan and South Korea had no shortage of. These societies all had a large and strong work force, paving the way for successful capitalist development. South Korea followed closely to Japan's model of capitalism, by creating large state-owned corporations called Chaebols. This model made it hard for small businesses to survive in South Korea because there was a strong competitive market amongst the state-owned corporations. The banks in South Korea as well as in China were nationalized, meaning that all the money that society was encouraged to save could then be loaned to the large businesses in order to increase their size and increase productivity. In South Korea this enhanced industrialization while China had problems of its own. China's peasant population was their major obstacle. A good thing about the peasant

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