US Economic Development Policies towards the Pacific Rim: by Nan Wiegersma, Joseph E. Medley

By Nan Wiegersma, Joseph E. Medley

US relief interventions have vastly advantaged a few international locations of their quest for improvement, yet now not others. The broad improvement suggestions, know-how transfers and marketplace entry that the U.S. executive granted Taiwan and South Korea of their improvement and the help lately given Costa Rica have been vital elements of their improvement successes. nonetheless, the beside the point rules of the USA in Vietnam within the fifties, El Salvador within the eighties and Nicaragua within the nineties, programmed those interventions to monetary in addition to political failure.

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Extra resources for US Economic Development Policies towards the Pacific Rim: Successes and Failures of US Aid

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Clearly these export earnings gave Taiwan the potential to substantially expand both its imports and its investment to meet its population’s needs. However, the Japanese government’s active involvement in Taiwan’s development was explicitly directed towards capturing the exportable surplus and utilizing it to advance Japanese aims – not to improve Taiwanese living standards. Japan expanded and concentrated its economic power in the industrial, financial and commercial sectors (the sugar refineries, rice processing mills, banks and trading companies).

Ladejinsky went on to visit Taiwan and help to formulate the same type of land reform that had been established in Japan. The peasants would secure their tenures through purchasing their land in a long term mortgage-type arrangement. Although Ladejinsky was not directly involved with the Korean reform, that reform also secured tenures for the peasants in a real estate transaction style of reform. By the time that the US became involved in another intervention in Asia, in the 1950s in Vietnam, the global political climate had changed, ardor for the New Deal had cooled and the developmental aspects of US interventions were reversed.

The intersection of their efforts produced conditions that simultaneously promoted the internationalization of US capitalism throughout the Pacific Rim and strengthened Taiwan and South Korea’s domestic economies. US policy makers wanted a stable model of anticommunist development. Land reform, the promotion of peasant cooperative associations and related government interventions into Taiwan and South Korea’s agricultural sectors produced positive results. They allowed the US to claim that these two countries are models of noncommunist, politically stable, ‘free-market’ economies.

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