By W. G. Aston
This is often the earliest precise survey of the voluminous jap literature released in English, starting from the Archaic interval (before A.D.700) during the 19th century romanic fictions, to the socalled Tokyo interval finishing in 1898.
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Already by 1979 Taiwan was the biggest deVeloping country exporter of manufactures to OECO (Organization for Economic Cooperation and Development). Between 1979 and 1984 its share rose from 17 to 21 percent, while Korea's fell from 16 to 15 percent (OEeD Observer 1986). These exports include not only textiles and clothes, but also radio and television sets, cassette recorders, electronic calculators, sewing machines, car parts, machine tools, and personal computers. Industrial products now make up 90 percent of total exports.
Removal of most of the exchange controls in 1987 was a milestone in Taiwan's development. It signalled, long after the event, that Taiwan has moved so far from the normal condition of underdevelopment that it can generate sufficient export earnings to cover all expected demands for foreign exchange. 10. S The Economist, 27 June 1987. In US$billion, Japan had 63, Taiwan 60, West Germany 56, followed a long way back by France, 29. Taiwan's are by far the biggest per capita. 42 CHAPTER 2 KOREA South Korea's performance has also been impressive, though the country trails Taiwan in prosperity; per capita income in 1986 was US$2,400--two-thirds of Taiwan's US$3,600.
THE FREE MARKET (FM) THEORY OF EAST ASIAN SUCCESS We tum now to the East Asian NICS. With some stretching of the category, pre-I970 Japan can be included as well. An abundant literature attributes the industrial success of the five NIcs-Japan, Taiwan, Korea, Hong Kong, and Singapore-to their reliance on free markets. For example, Hugh Patrick declares himself to be "of the school which interprets Japanese economic performance as due primarily to the actions and efforts of private individuals and enterprises responding to the opportunities provided in quite free markets for commodities and labor.