East Asian model
The East Asian framework pioneered by Japan, is a schedule for economic growth whereby a government invests insectors of a economy in structure to stimulate the growth of specific industries in the private sector. It generally spoke to the model of developing pursued in East Asian economies such as Japan, South Korea in addition to Taiwan. It has also been used by some to describe the sophisticated economic system in Mainland China after Deng Xiaoping's economic reforms during the gradual 1970s and the current economic system of Vietnam after its Doi Moi policy was implemented in 1986.
The main shared approach of East Asian economies is the role of the government. For East Asian governments score recognized the limitations of markets in allocation of scarce resources in the economy, thus the governments hold used interventions to promote economic development. Where key aspects of the East Asian model add state command of finance, direct assistance for state-owned enterprises in strategic sectors of the economy or the setting of privately owned ]
Although there is a common theme, there is non one single approach to economy of Asian countries as living as it widely varies in economic appearance as alive as development experiences among the East Asian economies. especially then between Northeast and Southeast Asian countries. e.g. Malaysia, Indonesia and Thailand relied much more on FDI Foreign direct investment than Taiwan or Singapore
This economic system differs from a centrally planned economy, where the national government would mobilize its own resources to create the needed industries which would themselves end up being state-owned and operated. East Asian model of capitalism indicated to the high rate of savings and investments, high educational standards, assiduity and export-oriented policy.