ECONOMIC GROWTH AND POLITICAL CHANGE IN ASIA

ECONOMIC GROWTH AND POLITICAL CHANGE IN ASIA

Economic Growth and Political Change in Asia Graham Field

First published in Great Britain 1995 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world A catalogue record for this book is available from the British Library. ISBN 978-1-349-24191-0 DOI 10.1007/978-1-349-24189-7 ISBN 978-1-349-24189-7 (ebook) First published in the United States of America 1995 by ST. MARTIN'S PRESS, INC., Scholarly and Reference Division, 175 Fifth A venue, New York, N.Y. 10010 ISBN 978-0-312-12696-4 Library of Congress Cataloging-in-Publication Data Field, Graham. Economic growth and political change in Asia I Graham Field. p. cm. Includes bibliographical references and index. ISBN 978-0-312-12696-4 (cloth) I. Asia-Economic conditions-1945- -Case studies. 2. Asia- -Economic policy-case studies. govel1uncnt-1945- --Case studies. I. Title. HC412.F44 1995 338.95--{\c20 3. Asia-Politics and 95-12496 CIP ------------------------------------- Graham Field 1995 Softeover reprint of the hardcover 3rd edition 1995 All rights reserved. No reproduction, copy or transmission of this publication may be made without written pemlission. No paragraph of this publication may be reproduced, copied or transmitted save with written pennission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WIP 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. 10 9 8 7 04 03 02 01 654 00 99 98 3

To the memory of my father

Contents Acknowledgements List of Abbreviations Introduction Factors in Economic Growth 2 Economic Policy 3 Dividing the Spoils 4 Veiled Authoritarianisms: Malaysia, Singapore and Indonesia 5 Market Stalinism: Burma, China, Laos, North Korea and Vietnam 6 Emerging Bourgeois Democracies: Hong Kong, South Korea, Taiwan, Thailand 7 Elite Democracies: Bangladesh, India, Pakistan, the Philippines and Sri Lanka Postscript Notes and References Bibliography Index viii ix 13 49 75 101 127 153 183 213 219 241 247 vii

Acknowledgements This book owes a great deal to the close attention given to the manuscript by Patrick Heenan and Monique Lamontagne, whose insightful criticism and comments did much to shape its development. The author would also like to thank all those people who gave their time and thoughts in interviews as well as his Asiamoney colleagues who guided his first steps in the region. GRAHAM FIELD viii

List of Abbreviations ABRI ADB AFTA ASEAN BJP BN BSF BNP BSPP CCP CFD CITIC CPB CPF CPP DAP DPP EU EPB EPZs FDI FUNCINPEC GATT GDP GLCs GNP HCI HDB HPAEs ICMI IMF ISA JVP KCIA KMT KPNLF LNG Angkatan Bersenjata Republik Indonesia Asian Development Bank ASEAN Free Trade Area Association of South East Asian Nations Bharatiya Janata Party Barisan Nasional Border Security Force Bangladesh National Party Burma Socialist Programme Party Chinese Communist Party Campaign for Democracy China International Trust and Investment Corporation Communist Party of Burma Central Provident Fund Communist Party of the Philippines Democratic Action Party Democratic Progressive Party European Union Economic Planning Board Export processing zones Foreign direct investment Front Uni National pour un Cambodge Independent, Neutre, Pacifique et Cooperati/ General Agreement on Tariffs and Trade Gross domestic product Government-linked corporations Gross national product Heavy and chemical industries Housing Development Board High performing Asian economies lkatan Cendekiawan Muslim Indonesia International Monetary Fund Internal Security Act lanatha Vimukthi Peramuna Korean Central Intelligence Agency Kuomintang Khmer People's National Liberation Front Liquefied natural gas ix

x LPRP LTTE MCA MIC MNLF MQM MRD NBFIs NEP NIEs NPA NPC NSP NTUC NU OECD PAP PAS PBS PDI PDP PLA PPP PPP PRC R&D SAR SBSI SEZs SLFP SPSI SLORC SMIs SOC TDRI UMNO UNDP UNESCAP UNP UNTAC USDA UUCA WTO List of Abbreviations Lao People's Revolutionary Party Liberation Tigers of Tamil Eelam Malaysian Chinese Association Malaysian Indian Congress Moro National Liberation Front Mohajir Qaumi Movement Movement to Restore Democracy Non bank financial institutions New Economic Policy Newly Industrialising economies National People's Army National People's Congress National Security Planning agency National Trade Union Congress Nahdlathul Ulama Organisation for Economic Cooperation and Development People's Action Party Parti Islam Parti Bersatu Sabah Partai Demokrasi Indonesia Palang Dharma Party People's Liberation Army Partai Persatuan Pembangunan Pakistan People's Party People's Republic of China Research and development Special Administrative Region Serikat Buruh Sejahtera Indonesia Special enterprise zones Sri Lanka Freedom Party Serikat Pekerjaan Seluruh Indonesia State Law and Order Restoration Council Small and medium sized industries State of Cambodia Thailand Development Research Institute United Malays National Organisation United Nations Development Programme United Nations Economic and Social Commission for Asia and the Pacific United National Party United Nations Transitional Authority for Cambodia Union Solidarity and Development Association Universities and University Colleges Act World Trade Organisation