What we can learn from Development
When it comes to development theories in international relations, there are basically two principle contesting schools of thought. The first, is the neoliberal one, its approaches undermine developing countries’ capacities for modernization, inhibit the development of infant industries, and make developing countries vulnerable to outside shocks. The second one embraces developmental state models, which focus on domestically developed policies including infant industry protection. Applying these approaches has resulted in growth and prosperity in developing countries. Therefore, domestically developed Human Development and Economic Growth policies are needed for the sustainable development of a country. Hence, the EU needs to rethink its external development strategies
Between the early 1960s and 1990s, the region ofEast Asia has seen exceptionally high growth rates and rapid industrialization. Through a strategic approach to integration with the global economy these regions were the first newly industrialized countries, succeeding in developing while maintaining it at a very high rate. In the 21st century, all four regions have since graduated into advanced economies and high-income economies still being the world's fastest growing industrialized economies now.
Korea Korea ’s progress is as if Haiti had turned into Switzerland
Innovation and technology and the investment in human capital, as in the promotion of universal education, are important to improve a country’s comparative advantage. Further, globalization has magnified the cost of bad, inconsistent policies and weak, inefficient institutions and has shown that it can become a danger to developing countries. The Asian crisis has shown the importance of effective state institutions and that a country should be careful not to open its economy too early.
In its relations with developing countries, the European Union focuses almost solely on trade agreements. It acknowledges the importance of economic growth and the reduction of poverty. It even addresses the need of the establishment of democratic institutions to promote good governance and democratic standard. Further, the EU applies conditionality so that the democratization process and the advancement of good governance are ensured as conditions for receiving aid. The promotion of sustainability and simplification and coordination of aid programs should be addressed as well as the promotion of capacity building. The EU’s approach to development aid focuses on pressuring development countries to open their markets, while granting their products preferential access to the European market. Further, it gives aid in conditionality linked with good governance, capacity building and respect for Human Rights.
Between the early 1960s and 1990s, the region of
Innovation and technology and the investment in human capital, as in the promotion of universal education, are important to improve a country’s comparative advantage. Further, globalization has magnified the cost of bad, inconsistent policies and weak, inefficient institutions and has shown that it can become a danger to developing countries. The Asian crisis has shown the importance of effective state institutions and that a country should be careful not to open its economy too early.
In its relations with developing countries, the European Union focuses almost solely on trade agreements. It acknowledges the importance of economic growth and the reduction of poverty. It even addresses the need of the establishment of democratic institutions to promote good governance and democratic standard. Further, the EU applies conditionality so that the democratization process and the advancement of good governance are ensured as conditions for receiving aid. The promotion of sustainability and simplification and coordination of aid programs should be addressed as well as the promotion of capacity building. The EU’s approach to development aid focuses on pressuring development countries to open their markets, while granting their products preferential access to the European market. Further, it gives aid in conditionality linked with good governance, capacity building and respect for Human Rights.
Abstract
The debate on whether internal or external factors where more important for development was spurred on by the rise of the Four Asian Tigers Singapore, Taiwan, South Korea and Hong Kong (also called NICs – newly industrialized countries). Scholars argue whether export-oriented industrialization policies (neoliberal school) or successful state intervention policies (developmental state school) were the key to the success of the Tigers. Which type of policy should then serve as a model for other countries? What can the EU learn from the Asian Tigers, in terms of encouraging development?
https://www.opendrive.com/files?41672013_wkyXB-------------------------------------------------
S. Katarina Schmitz is a Brussels-based international trade expert who works with the German Ministry of Foreign Trade and specializes in EU external development cooperation relations.
