The Lessons of East Asia · An Overview of Country Experience

The success of development in East Asia is legendary. No other group of developing countries has done as well in fostering growth, reducing poverty, integrating with world markets, or raising standards of living. Over the past twenty-five years, per capita incomes in the region almost quadrupled. Absolute poverty fell by about two-thirds on average, population growth rates declined rapidly, and health and education improved markedly. The first set of success stories, that of the "Asian tigers," has led to a second generation of rapidly industrializing, fast-growing economies. And now China has started a new engine of regional growth. Although often spoken of as a single group, the East Asian economies are, in fact, remarkably diverse. The region includes some of the richest and the poorest of the world's developing countries, some of the most populous and some of the least, some with a store of natural resources and some with virtually none. Moreover, despite its steady growth, East Asia is still grappling with serious challenges, including environmental degradation, infrastructural bottlenecks, and poverty. But if there is a single firm lesson to be drawn from the region in the past few decades, it is that difficult changes have a history of being met.