Emerging States and Economies in Asia: A Historical and Comparative Perspective

Abstract

Emerging nations are gaining weight in global economy and politics in the 21st century. Proud of their achievement in recent years but confronted with the challenge of middle-income trap as well as specific risks and uncertainties that attend changes brought about by their rapid economic growth, they often question the post-Cold War global system of Pax Americana, liberal democracy, market economy, and self-regulating market and offer a new social contract of a life of plenty and security as the basis for a new global system. This chapter examines its significance in a long historical and comparative perspective and underscores the importance of states' ability to manage risks and uncertainties. The notion of emerging nations-a shorthand for emerging states and economies-derives its meaning from such terms as emerging markets, emerging market economies, emerging powers, and emerging states, as well as the very idea of "emergence." But the notion is very much anchored in the idea of emerging economies and markets, the three fundamental characteristics of which are high economic growth, middle-income status, and higher risks and uncertainties institutional investors see those economies as facing compared to advanced industrialized economies. High economic growth over decades has put some of the emerging countries, most prominently BRICs (Brazil, Russia, India and China, a category originally invented by an investment bank), on a par in size with G7 advanced economies. The global share of developing and emerging economies also expanded from 20.2% in 2000 to 39.7% in 2015, while the G7 share declined from 65.6% in 2000 to 46.3% in 2015. Yet many emerging nations with middle-income status, confronted with the challenge of middle-income trap, tend to adopt approaches to global governance issues that differ from those of advanced industrialized nations. They also confront specific risks and uncertainties that attend the social, cultural, and political changes brought about by their rapid economic growth and their state capacity and behavior in manag

Introduction: The Nexus of Developmental Policy and State Building

“…All these analytical limitations and evolving contexts provide an opportunity for us to reconsider more thoroughly the role of the state in economic development and offer deeper reflections on development strategies for emerging economies. More specifically, this volume makes enquiries into the bled of technocracy and democracy delivering economic growth with equity, national and regional security and stability (Shiraishi 2018). It also explores those factors which lead to particular mixes of technocracy and democracy, presumably including state capabilities, geopolitical location, and ethnic diversity.…”