THE ROLE OF THE STATE IN THE GENETICS OF THE EAST ASIAN “ECONOMIC MIRACLE”: A NEOSTRUCTURALIST VISION

Abstract

The existence of common features and regularities of the neostructuralist model of modernization in the successfully modernized economies of East Asian countries with different regimes is substantiated. Above all, it is an active “entrepreneurial” role of the state in developing infrastructure as an important factor of production and encouraging, under competitive market environment, export-oriented sectors of the economy based on existing comparative advantages, gradual introducing to competitive positions in domestic and foreign markets the previously established large capital-intensive and high-tech enterprises. A critical prerequisite for success is the state’s proper attention to developing "soft" infrastructure, in particular, ensuring such important components of the "inclusive" economy as respect for property rights, impartiality of commercial courts, wide choice of economic activity, quality education system devoid of class privileges and status barriers, etc. All these components are present in modern highly competitive economies of the Confucian tradition. It is shown that the center-periphery paradigm, reflecting the fractal nature of economic and social networks, organically fits into the theory of the new structural economy at all levels of analysis, strategy, and practical economic policy. Thus, even from a low agricultural start with an active and purposeful structural policy of the state, it is possible to form “cores” of comparative competitiveness, derived from endogenous rather than exogenous factors of economic development. Based on the factor endowment of national economy, enterprises with existing comparative advantages, regardless of whether they belong to the first or sixth technological mode, should be provided by the state with additional incentives (credit, infrastructure, etc.) to enter foreign markets, attract foreign investors, carry out technology transfer. Particular attention is paid to the modernization experience of Poland, whose government since the end of 2016 has been applying in its economic program and policy the theoretical achievements and practical experience of East Asian neostructuralism.