Compare and contrast the experience of Northeast with Southeast Asia
Geography and institutions play a key role in the long-term growth and development of an economy. Geography determines the ecology, climate and nature of economic activities carried out in a particular region. If the ecology is favorable, it can provide ample fauna and floral species as well as rich minerals required in the process of escalating economic growth through trade and commerce.
Institutions are the formal mechanisms put in place in order to monitor geography, enhance trade and eventually determine income levels in various countries. They are mechanisms established in order to control human activities such as trade, commerce and governance.
Institutions and geography influence development either negatively or positively. This paper compares and contrasts experiences in North East and South East Asia and evaluates how decolonization changed the vicious circle of institutional development in Asia
How “decolonization” changed the vicious circle of institutional development in Asia
Evidences from literature have shown that the decolonization era in Asia is a very essential phase since it marks a new development trajectory and opportunity to terminate colonial legacies. This phase led to the culmination of extractive institutions that were relatively worse than pre-colonial institutions.
Research has shown that decolonization led to emergence of new political institutions aimed at enhancing socio-economic growth. In real sense, decolonization resulted into upsurge of independent states such as Taiwan and Korea. Prior to the end of colonial rule, some states adopted repressive institutions that had the characteristics of colonial systems.
These resulted into the rise of socio-economic problems such as wage inequality and income disparity. Eventually, it occasioned the rise of political and socio-economic revolutions. It is important to note that some institutions established after colonization era were developmental while others were extractive. Egalitarian institutions eventually substituted oppressive ones.
Characteristics of the latter included democracy and equality unlike the colonial regimes that spearheaded racism, inequality and exploitation. Decolonization changed the vicious circle of institutional development in Asia by eliminating the powerful elites who wanted to gain power at the expense of development. This also resulted into the end of extractive political institutions that were not innovative and equally destructive to work force.
Comparison between the experiences of Northeast with Southeast Asia
During the pre-colonial period, both North East and South East Asia experienced positive economic growth. Besides, the regions had excellent institutions. After colonization, the establishment of extractive institutions took place. The colonialists operated the institutions through land reforms. State
Contrast between the experiences of Northeast with Southeast Asia
Research studies indicate that after independence, the South East part of Asia embraced neo-colonial institutions. In this region, income inequality was evident among other economic injustices. After careful review of literature, it is obvious that inheritance was the main method of acquiring resources such as land and property.
Consequently, it expanded the gap between the poor and rich people. However, the North Eastern states adopted developmental institutions in form of estates. In other words, the eastern side was able to break away completely from colonial chains.
Later on, they experienced tremendous growth in almost all the states including Taiwan and Korea. The North Eastern institutions practiced income equalization gradually achieved through land reforms. Extensive research indicates that the introduction of land reforms in the North Eastern part of Asia began as early as 1950s.
This led into an increase in agricultural activities. The trend continued for some decades and eventually accelerated economic growth. This explains why Japan, Korea and Taiwan are among the wealthiest countries in Asia today.