Political Science, February 14.
Postwar Reconstruction (Growing the global economy)
In the paper, we have to compare. You need to be able to describe them, but we only have 5
pages to do it. Accent on COMPARE. Half of it talks about VALUES AND POLICY.
Comparing requires you to do some serious thinking. COMPARE COMPARE, similarities
and dissimilarities, unit of analysis, individuals vs. system. Best analogy, people say you
can’t compare apples and oranges, but you can.
Government intervention they created strategic policies, to create comparative
advantage (TSMC) government bought technology, founded the university and
invested into the firm.
Infant industry protection Alexander Hamilton, how is America going to grow its
firms? You have to protect your infant industry by making foreign competition more
expensive, by increasing tariff barriers and putting a tax on foreign
goods( manipulate the market to encourage citizens to buy their own products )
Picking and making market winners These are small economies( Taiwan, Korea)
picked sectors they thought they could do well in, and they picked things good for
their industry and slowly advanced, and paid attention to what market wanted
American patronage Americans helped them out a lot, provided military support,
largest naval fleet in Japan to protect from communist expansion, amount of aid
given to just o Korea was more then half of the aid given to the whole African
continent, bought Korean products
Development state Only best and brightest were invited, and these industries
had extraordinary power, they had the power
Export oriented growth they needed to export, they have small markets (25- 40
million of people) these economies were plugged into the market economy ( they sold
more then they bought, and essentially benefited from the global economy)
Outlier or Model?
Market regarding – Smith
Mercantilist – List Hamilton predicated to government