Table Of ContentEurope-Asia-Pacific Studies in Economy and Technology
Editorial Board
Thilo Graf Brockdorff
Per Fischer
Manfred Kulessa
Theodor Leuenberger
Dieter Schneidewind
Manfred Kulessa (Ed.)
The Newly
Industrializing Economies
of Asia
Prospects of Co-operation
With 17 Figures
Springer-Verlag Berlin Heidelberg New York
London Paris Tokyo Hong Kong
Dr. jur. Manfred Kulessa
Development Policy Forum
German Foundation for International Development
Villa Borsig, D-lOOO Berlin 27, FRG
ISBN-13: 978-3-642-75707-5 e-ISBN-13: 978-3-642-75705-1
DOl: 10.1007/978-3-642-75705-1
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It is ofv ital importance thatfrontiers are open and that there are no impediments to trade bet
ween our countries. The Ee must also stand by this basic principle with regard to the Single Eu
ropean Market. Partnerships can only work under these circumstances. I am aware that the
conditionsfor fOlmingpartnerships still vary considerably. Some countries are in afar better
position to do so than others. Nonetheless, particularly this tradefair here in Berlin demonstra
tes a great deal ofh ard work and precision, innovation and boldness which enable you to take
the risk off orming partnerships.
The progress we need is the kind ofp rogress that allows such partnerships to work. This trade
fair contributes to this in the same way as tradefairs have done since mediaeval times, when Eu
rope was not yet economically developed: people meet and get to know what the others are able
to accomplish, and the information thus acquired leads to an interest in trading with each
other. Trade is the soundestform ofm utual aid: both sides give and take at the same time. Both
partners remain aware oft he value oft heir own achievements. This can develop into partner
ships from which all parties reap material benifit and which strengthen their confidence in
themselves.
RICHARD VON WEIZSACKER
President of the Federal Republic of Germany
Preface
Where development is concerned, our language and perhaps our way oft hinking often ap
pear somewhat distorted. Ifa nything, the Asian economies with their most impressive and
dynamic growth should logically be called developing countries. Instead, we call them
threshold countries, newly industrializing countries (NICs) or newly industrializing eco
nomies (NIEs), the latter term taking into account the Chinese argument that Hong Kong
and Taiwan should not be considered countries.
During the eighties, when Latin American NICs became the main victims of the debt
crisis, the NIEs ofE ast Asia (EANIEs), the little tigers or dragons, presented most impres
sive examples ofg rowth through orientation to world trade, fitting well into the Japanese
'flying-geese' concept.
Naturally, questions were raised as to the reasons for this success, the lessons other
countries could draw from it, and the outlook for the future. At the same time, the establis
hed industrial countries wanted to know what NIE competition might mean for them. In
1988, the OECD published a study entitled "The NIEs - Challenge and Opportunity for
OECD Industries". The NIBs had become a fashionable object of research and debate.
In Western Europe, where countries are preparing for a period offurtherintegration and
East-West cooperation, it seems worth-while to also consider the role ofthe EANIEs and
the options for cooperation they represent. Moreover, the NIEs themselves are following
development in Europe with some concern and are trying to adjust to the new situation as
it emerges.
Against this background, an international round table was convened by the Develop
ment Policy Forum ofthe German Foundation for International Development in coope
ration with the Asia Pacific Society, Cologne. The meeting took place at Villa Borsig, Ber
lin (West), from 25 to 29 September 1989. More than 60 scholars, politicians, government
officials and representatives of the business community took part. Most ofthe contribu
tions to this volume are papers submitted to the round table. A summary ofits deliberati
ons, its programme and a list of participants have also been included.
Thus, we are not offering a comprehensive reference book on the NIE phenomenon,
but a record ofa uthentic presentations reflecting the views ofi nvolved observers at the end
of the decade. The main purpose ofo ur meeting was just that: to provide a forum for pre
senting the NIEs, their situation, future plans, hopes and concerns, and for a discussion of
ways to enhance cooperation between them and Germany and Europe. Participants were
invited from the four classic EANIEs, namely Hong Kong, Korea, Singapore and Taiwan,
and from Thailand and Malaysia, two countries rapidly approaching NIE status, though
they still prefer not to be so identified while they certainly belong to the group ofD ynamic
Asian Economies (DAB). In Berlin, they met their counterparts from Germany and other
European countries.
VIII
Our meeting coincided with the international import fair "Partners for Progress". On
this occasion, the Federal President, Dr. Richard von W eizsiicker, extended invitations to
a reception. With his kind permission, we have included his word ofg reeting to the guests
from abroad.
We believe that the expert documents produced for and at the round table are relevant
to the present international debate on the status and potential role of the NIEs on the opti
ons for strengthening their cooperation with Europe. Therefore, we would like to submit
them to a wider audience.
At the same time, I am glad ofa nother opportunity to thank all the authors for their con
tributions, Theodor Leuenberger and the Asia Pacific Society for their cooperation, and
Wolfgang Hillebrand and Philippe Regnier for their competent and conscientious support
in preparing the report of the meeting.
January 1990 MANFRED KULESSA
The German Foundation for International Development (Deutsche Stiftung fUr internationale Entwicklung
DSE) is agovemment-supported public institution with a mandate ofd ialogue and training in the field ofinter
national development cooperation. Its Development Policy Forum convenes meetings in support of North
South and South-South dialogues.
Europe - NIE Partnership in Development Policy
Address given at the International Round Table by
Hans-Peter Repnik
Parliamentary State Secretary
to the Federal Minister for Economic Cooperation
Bonn
It is a pleasure for me to welcome you all, and especially our guests from Asia, and to con
vey to you the best wishes ofthe Federal Government and the Federal Minister for Econo
mic Cooperation.
The North-South dialogue plays an essential role in our efforts to assume ajointrespon
sibility for the one world which is our common home. For this reason, the Federal
Government supports the work of the Development Policy Forum of the German Foun
dation for International Development (DSE), and is pleased that this conference is being
devoted specially to the dialogue with the emerging industrial nations of Asia. I think that
an open exchange of this kind outside the framework of official contacts can benefit all
concerned, and also that we may expect it to generate ideas for strengthening international
cooperation.
Based on the detailed introductory paper prepared by Mr. Schomerus, the main areas of
global trade in goods and services were highlighted where we in Europe, and you in Asia
too, see our main opportunities and challenges and where our political principles must
prove themselves in practice. I believe that, if we view things from a higher vantage point,
we will see that, essentially, we share common interests.
This certainly goes for development cooperation. The Federal Government cannot but
welcome the fact that, in the shape of the NIEs, the traditional industrial countries now
have partners willing to play their part in fighting poverty and creating the basis for a life in
human dignity throughout the world. It is the express wish of the Federal Government
that your nations should join us in assuming a common responsibility for global develop
ment. We are pleased to see that the NIEs are establishing international development
funds and intensifYing their efforts in the field of bilateral and multilateral development
cooperation - an area where your countries, as was the case with Germany after World
War II, are becoming recipients rather than donors.
In recent years, the Federal Government and the governments of Korea and Singapore
have gradually reduced the level oft heir development cooperation thanks to the economic
progress these two countries have achieved.
In comparison with these countries' own efforts, the contribution of German develop
ment assistance has been modest but oflasting significance in certain sectors such as voca
tional training.
This conference will examine the question whether the NIEs can be models for other
developing countries. An exemplary feature of our development cooperation, and
without doubt one ofthe factors responsible for the economic success ofK orea and Singa
pore, has been the determination, skill and flexibility with which our two partners have
pursued their long-term development strategies whilst ensuring a stable and predictable
economic environment.
x
Development cooperation's South-South dimensioil can assume a new qualitiy if the
NIEs are willing to contribute their special experience, technical skills and economic
strength to the cause of international cooperation. Here I would refer in particular to the
need for support for the world's poorest countries, some of which are to be found in Asia
and indeed in your neighbourhood.
In the coming days, you will discuss the relations between Europe and the NIEs ofA sia.
Wherever such discussions take place they do so against the backdrop of the historic
events and developments ofo ur times which we all are following with a mixture ofa nxiety
and hope: the Uruguay round of multilateral negotiations on GATT; the reform move
ment in the socialist countries which may lead to a restructuring ofinternational relations;
recent developments in China; the completion of the European Single Market; the emer
gence of a multipolar world - to name but the most obvious.
However, as somebody concerned with the formulation ofd evelopment policy, I would
like also to draw this conference's attention to other global problems confronting us: the
international debt crisis, population growth and the continuing devastation of our natural
environment.
Ify ou will allow, I would like to say a few words on this last issue. Like Europe, the NIEs
have chosen the path ofindustrial modernization. Todaywe know that this path has placed
an enormous burden on the environment and now poses an acute threat fo the bases ofhu
manity's existence. Whether old or young, all the industrial nations are in the same boat.
We must assume a common responsibility for ensuring that our way oflife and modes of
production are oriented more to the needs ofthe environment and for preserving our most
important natural assets worldwide. We offer our cooperation in this field, and hope that
you too will make a contribution to developing and to applying environment-friendly tech
nologies and to repairing environmental damage in industrial and developing countries
and avoiding it in future.
I hope that despite the intensity ofthe Forum's programme you will take this opportu
nity to get to know the Federal Republic and Berlin as well as the people who live here and
their hopes and concerns.
Contents
Summary Report. . . . . . . . . . . . . . . . . . . 1
Part One The Asian NIEs and the Asia-Pacific Region
Country Issues
Korea: A Newly Industrializing Economy Market Opening, Internationalization
and International Cooperation
by Han Young-Soo . . . . . . . . . . . . . . . . . 21
Korea 2000: Economic and Social Targets and Development Strategies
by Hak-Yong Rhee . . . . . . . . . . . . . . . 32
Korea's Long-Term Trade Prospects and Policies to the Year 2000
by Lee Young Sae . . . . . . . . . 45
Taiwan: Claims and Strategies towards Europe
by Sho-Chieh Tsiang . . . . . . 56
The Case for Taiwan's Role in the OECD
by Raymond J. M. Chang. . . . . 66
The Significance of Taiwan's Rejoining GATT
by ArthurK. Yeh . . . . . . . . . . 88
The Hong Kong Economy in a Changing International Economic Environment
by Edward K. Y. Chen. . . . . . . . . . . . . . . . . . . 97
Regional Issues
Some Reflections on Prospects for Regional Co-operation in the
Asian-Pacific Region
by Syed M. Naseem. . . . III
ASEAN Reality and Perspective
by Sharon Siddique. . . . 123
NIE-Japanese Strategic Interdependence in the Pacific Basin
by Henri-Claude de Bettignies . . . . 128
The East Asian NICs and South Asia Reality
by Ponna Wignaraja. . . . 138
Thailand and the So-Called NIEs
by Suchat Prachimdhit 148
Market Forces in the Asian NIEs
State Intervention, State Involvement and Market Forces - Singapore and
South Korea
by Hans Christoph Rieger and Wolfgang Veit . . . . . . . . . . . 155
XII
The Development of Small and Medium-Sized Enterprises in the Asian NIEs -
Business Opportunities for Western Europe?
by Philippe Regnier. . . . . . . . . . . . . . . . . . . . 180
Part Two
The Relations between the Asian NIEs and Europe in a Worldwide Perspective
The NIEs and Major World Economic Issues
A World Scenario: The Emergence of Three Main Trading Zones
The European Community / Japan - East Asia - Pacific / USA - Canada
by Theodor Leuenberger. . . . . . . . . . . . . . . 197
The Concept of the International Division of Labour and Principles of
Cooperation
by Ulrich Hiemenz . . . . . . . . . . . . . . . . . · . . 211
Technology and Global Competition:
The Challenge ahead for the NIEs
by Dieter Ernst . . . . . . . . . . . . . . . . . . · .. 223
NIEs as Models for Establishing a Highly Competitive Industrial Base:
What Lessons to Learn?
by Wolfgang Hillebrand · .. 249
The NIEs and Europe
Europe 1992 and the NIEs
by Wolfgang Hager. . . . . . . . . . . . . 263
Recent Trade Patterns between NIEs and Western Europe
by Friedrich von Kirchbach . . . . . . . . . . 273
The NIEs Viewed from the German and European Perspectives
by Lorenz Schomerus . . . . . . . . . . . . . 295
The Ability of the German Economy to Face Opportunities and Challenges
of Emerging NIEs
by Helmut Giesecke. . . . . . . . . . . . . . . 307
Recommendations for a European Policy towards the Asian NIEs
by Achim von Heynitz 315
Annexes. . . . . . . 323
Statistical Country Proftles
by Harald Mlicke. . . . . . . . . . . . 328
Programme of the International Round Table Meeting 341
List of Participants and Authors. . . . . . . . 349
