The chosen article for critique is Big Asian economies take on the forces of international capital—and win. The article discusses how several large Asian economies, such as India, China, and Indonesia, have successfully resisted the pressures of international capital and maintained their economic freedom. The article mentions that these countries have all adopted the developmental state model, where the government strongly steers economic growth and protects domestic industries. The article goes ahead to highlight the several key strategies used in these Asian countries that include the use of protectionist policies, a state-owned enterprise, and selective engagement with foreign capital (The Economist, 2023). The article further highlights that these countries maintain strong economic growth and poverty reduction. Nevertheless, the article points out the disadvantages of this model, which include the potential for corruption risk of having inefficient and uncompetitive industries. Regardless of the disadvantage, the author’s intention in this article is to show the world how Asian economies found the magic to resist international capital pressures that continue to affect other nations.
Critiquing the article, I present how the author approaches the subject of the developmental state model as adopted by several large Asian economies, highlighting two strengths of the approach and two weaknesses of it. What makes me take this approach to analyze the article is that while the author highlights the positive aspects of the model, the author also acknowledges the potential drawbacks linked to the method. Reflecting on the strengths side, the article notes how the developmental state model has made countries such as China, Singapore, India, and Indonesia to be immune to the pressures of international capital and maintaining these countries’ economic independence (The Economist, 2023). The author defends the argument on the strength of this model by highlighting how using protectionist policies, the use of state-owned enterprises, and selective engagement with foreign capital has helped achieve strong economic growth and the reduction of poverty in these countries. Similarly, the protection of these domestic industries has helped these Asian nations such as China to develop and become a significant players in the global economy. Another strength of the article is using the protection of domestic industries as a tool that Asian countries have used as a means to protect foreign reliance. Limiting the foreign ownership of key industries makes the domestic industries thrive, indicating how the model adopted by these nations effectively stimulates a nation’s economic growth.
Nevertheless, the article seems to offer a one-sided view of this developmental model of Asian countries where the concentration s largely placed on its strengths as opposed to the drawbacks it has. The author superficially states the method’s drawbacks as limited completion and, secondly, the promotion of inequality. That is, adopting this method that promotes protectionism and restricts foreign investment makes the countries have low-quality products and exorbitant prices that could otherwise be eliminated if there was a free market option (The Economist, 2023). On inequality, despite the author not addressing the issue directly, he points out that the developmental model can perpetuate global economic inequality. By limiting opportunities to other small and less developed economies, especially those in the same region, large Asian economies may prevent these countries from developing to catch up with the rest of the world. Despite these disadvantages being important and worth addressing, the article generally failed to explain them to the latter. Instead, the article is based on the advantages that come up with the model that many larger Asian economies have adopted.
Nevertheless, what is sufficient with this article is its ability to mention the advantages and drawbacks that come with the method, even if the latter still needs to be fully developed. Acknowledging it makes the audience see how the author is considerate in ensuring that the information presented in the article is accurate, credible, and devoid of bias to represent the actual situation of what is happening in these Asian countries. Similarly, the continued citing of several sources to inform the research findings is incredible as it helps build a reputable source of information worth reading and using to inform future research, especially in economic circles.
In a nutshell, the author has presented a balanced critique of the developmental state model that Asian countries have adopted. The article effectively highlights the positive aspects that have come up with this model as well as acknowledging the potential drawbacks of the model. This balanced stance taken by the authors makes the readers create their own opinions on how effective this model is, and its potential to be applied in other countries. Despite concentrating much on the advantages side than the drawbacks, the article is generally sound, informative, and reliable in using it as a case study on other countries and how they can turn out if they adopt the developmental model. Similarly, the technique used by these countries seems crucial in steering national economic growth among different groups; however, it could be a better approach towards global business due to its restrictive nature for foreign investors while focusing on the protection of domestic markets.
References
The Economist (2023). Big Asian economies take on the forces of international capital and win. The Economist. Retrieved March 28, 2023, from https://www.economist.com/finance-and-economics/2023/02/23/big-asian-economies-take-on-the-forces-of-international-capital-and-win
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