Comparing European and Asian Development

• Some similarities exist exists between European and Asian development.
• China's pre-industrial economy had at least as much dynamism as Europe's during the same time.
• Medieval Europeans found the Islamic world dazzling in its wealth and intellectualism.
• Christianization served as the basis for state-formation across northern and eastern Europe following 1000 AD.
• Early maritime commerce owes a debt to Asian merchants.
• Edward Said criticized the classics of European writing on Asian history, ethnography, and culture in his work, Orientalist Fantasy.
• Expropriation, characterized by Europeans taking land for plantations and mines and displacing native populations, became a defining feature of European imperialism.
• Adam Smith introduced the idea of worldwide free trade in the 1830s and 1840s.
• Max Weber identified the activist rationalizing mentality as the key factor enabling Europe's transition to modern industrial capitalism.
• The rapid dissolution of Europe's colonial empire began in 1945.
• European states were largely responsible for making the world economy and extending European rule across the non-European world.

Neoliberalism

• Individual liberty and free markets are the key principles that form the base
• Washington Consensus calls for Unimpeded private markets and they are primary drivers of economic growth
• Structural adjustments involve economic "restructuring" conditions imposed on borrowing nations by organizations like the World Bank and the IMF.
• Joseph Schumpeter's economic theory of creative destruction was introduced in 1976.
• Increased investment in operations and infrastructures stem from liberal economic policies and tax cuts.
• Cuts in welfare are Measures to reduce government expenditures and tax
• Three free market premises: Privatization of industry, deregulation of the economy, and reductions in a nation's spending on social welfare programs

Globalization

• Special Economic Zones exist in China
• Export processing zones exist in the Philippines
• Hong Kong adopts a "laissez-faire" economic approach.
• South Korea relied the least on foreign direct investment.
• Singapore strategically used FDI to attract high-value industries.
• Taiwan encouraged the development of backward linkages and technology transfer.
• Hong Kong acts as a gateway for trade and business with China.
• South Korea plays a strong role in industrial policy, leading to its success.
• The Four Modernizations was a policy in China during the 1970s.
• Special Economic Zones are a special economy policy of China
• China and South Korea, copy and reverse engineer to acquire foreign technology
• Utilizing trade and FDI became one way China tapped into foreign knowledge.
• China's strategy has 5 key pillars: import turney plants, copy, reverse engineering foreign technology, disseminate knowledge internally, tap into global knowledge through trade and FDI, increase investment in R&D.
• The outward orientation economic strategy was the most followed Asian economies.
• Macroeconomic stability and good governance are essential for countries to successfully use knowledge for development.
• Physical disintegration of production involves lower costs in transportation and communication alongside the digitalization of information.
• First Unbundling involves producing goods close to consumers.
• Second Unbundling means manufacturing stages are located together.
• Traditional labor-intensive export strategies are no longer as effective because of rapid changes and the speed, scale, and scope of China's entry into the global economy.
• Developing countries face the challenge of demonstrating high standards of quality and timeliness in delivery when entering global supply chains.