Synopsis

In the 1960s and 1970s, rapid economic growth and industrialisation in East Asia’s NIEs (Newly Industrialising Economies), viz. Hong Kong, Singapore, South Korea and Taiwan (also called the Four Little Dragons), brought about the formulation of an export-led development model in small, resource-scare economies. Hitherto, import-substituting industrialisation was generally accepted in the development literature. In the 1980s, this export-led industrialisation model was transmitted to Southeast Asian countries. This model of development was not challenged until the late 1990s after the Asian financial crisis broke out.

Since the beginning of the 21st century, a new model of development has emerged in the BRICs (a group of countries comprising Brazil, Russia, India and China) which are large, resource-rich countries embarking simultaneously on export-led and import-substituting industrialisation with considerable success. Their performance has been impressive and their potentials seem tremendous.

There are similarities and differences in the experience of development between the NIEs and BRICs. But, what are the underlying factors explaining this shift of development paradigm? This lecture provides an exploratory analysis.