Lessons for Africa from East Asian Economic Policy

Abstract

The aim of this essay is in principle a simple one: to identify the reasons underlying the success (from the 1960s to 1997 at least) of the East Asian economies and derive any lessons for economic policy in sub-Saharan African (SSA) economies. The 1997–98 crisis notwithstanding, for some thirty years many East Asian economies enjoyed unprecedented economic growth rates. An understanding of the reasons for this can help inform economic policy recommendations for other developing countries. Furthermore, the reasons underlying the crisis also offer lessons, in particular regarding exchange rate and financial sector policies. Economic policy in developing countries can benefit from greater understanding of the successes and failures of the East Asian countries. We do not argue that African countries should emulate or copy the Asian economies. Rather, we ask what can African economies learn (or what can we learn, from the Asian experience, about prospects for African economies)?