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Progress Through Setback or Mired in Mediocrity? Crisis and Institutional Change in Southeast Asia

Journal of East Asian studies, v.5 no.2, 2005년, pp.273 - 313  

Ritchie, Bryan K.

Abstract AI-Helper 아이콘AI-Helper

A well-developed thesis in political economy claims that crises create opportunities for change. Yet despite creating similar preferences for change, the Asian financial crisis led to reform of policies and institutions in some issue areas and in some countries of Southeast Asia, but not in others. ...

참고문헌 (79)

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  2. The New Wave of Foreign Direct Investment in Asia 111 1995 Salleh 

  3. World Bank Occasional Paper Series 1995 Tan 

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  7. For a detailed discussion of why, see Hicken and Ritchie , “The Origin of Credibility Enhancing Institutions in Southeast Asia.” 

  8. In one case, a large hard disk drive firm located one of its four primary R&D centers in Singapore. In 1998 the company released what would turn out to be its best-selling drive, which was completely designed and produced in Singapore. 

  9. World Bank, Thailand Economic Monitor, p. 43. 

  10. FELKER, GREG B. Southeast Asian industrialisation and the changing global production system. Third world quarterly, vol.24, no.2, 255-282.

  11. The Rise and Decline of Nations 1982 Olson 

  12. See also Crispin Shawn W. , “Heard in Asia: Industrial Relations: Japan Burnishes Thailand's Image,” Asian Wall Street Journal, June 3, 2003. 

  13. Doner and Ritchie , “Economic Crisis and Technological Trajectories.” 

  14. Enhancing Policy and Institutional Support for Industrial Technology Development in Thailand 2000 Arnold 

  15. Ritchie , “Innovation Systems,” pp. 21-48. 

  16. See Felker G. and Jomo K.S. , “Introduction,” in Jomo and Felker , Technology, Competitiveness, and the State. 

  17. Between 1997 and 2000, Seagate shut down two plants in Malaysia and one in Thailand. Over this period, it reduced its Malaysian workforce from a high of 24,000 to just 5,500; its Singaporean workforce from a high of 20,000 to just over 9,000; and its Thai workforce from over 40,000 to around 18,000. Concurrently, the size of its Chinese workforce ballooned to more than 20,000. 

  18. Certainly developing countries have access to a variety of examples from both developed and developing countries (primarily the East Asian NICs) of how to upgrade technologically. But there is growing skepticism about whether the policies that worked there and then will work in Southeast Asia's here and now. The result has been much debate and little agreement over how to improve technological capacity. 

  19. Thelen, Kathleen. HISTORICAL INSTITUTIONALISM IN COMPARATIVE POLITICS. Annual review of political science, vol.2, 369-404.

  20. Felker and Jomo , Southeast Asian Paper Tigers, pp. 97-98. 

  21. Industrial Technology Development in Malaysia: Industry and Firm Studies 1999 Goh 

  22. From Silicon Valley to Singapore: Location and Competitive Advantage in the Hard Disk Drive Industry 2000 McKendrick 

  23. See the Manpower 21 plan from the Ministry of Manpower, among others. 

  24. Strategic Pragmatism: The Culture of Singapore's Economic Development Board 1996 Schein 

  25. The combined average GNP growth of these countries over this period was 5.7 percent, including the period of the downturn, 1996-1999. 

  26. One senior-ranking official in the Ministry of Labor and Social Welfare responsible for shepherding the revised vocational education bill through the cabinet complained that Thaksin has been unwilling to propose any additional corporate contributions to education and training beyond the 7 percent combined social security worker's compensation payment. His proposal was to tap the worker's compensation fund to pay for training. However, these funds could only be used by unemployed workers. 

  27. Wisarn and Bunluasak argue that the number of Thai firms in their study to achieve a midlevel understanding of MNC technologies was much more limited, and they report that no firms achieved a high level of proficiency. Wisarn P. and Bunluasak P. , “Foreign Direct Investment and Industrial Restructuring in Thailand.” In Kenkyujo and Institute of Southeast Asian Studies, The New Wave of Foreign Direct Investment in Asia, pp. 111-130. 

  28. Author interviews with officials from the Ministry of Labor and Social Welfare, Thailand, 1998, 1999, 2000. See the 1999 education reform act for details of the actual legislation. 

  29. Politics in Hard Times: Comparative Responses to International Economic Crises 1986 Gourevitch 

  30. Business and the State in Developing Countries 1997 Schneider 

  31. Phrarachabanyat Song Serm Kanfug Aachiib (Department of workplace skills development, Royal Decree to improve career skills) 48 1994 Rangngan 

  32. Author interviews with officials from the Ministry of Manpower and Productivity and Standards Board, Singapore 1999, 2000. 

  33. Author interviews 1999, 2000, 2001. 

  34. Leutert H.-G. and Sudhoff R. , “Technology Capacity Building in the Malaysian Automotive Industry,” in Jomo , Felker , and Rasiah , Industrial Technology Development in Malaysia; and Abdulsomad K. , “Promoting Industrial and Technological Development Under Contrasting Industrial Policies: The Automobile Industries in Malaysia and Thailand.” In Jomo , Felker , and Rasiah , Industrial Technology Development in Malaysia. 

  35. I am not arguing that reforms in all these other areas were similar across Southeast Asia. Certainly the amount and kind of reform varied significantly across the region. Nor am I arguing that all of these reforms were easy. My argument is that reforms in many of these areas occurred in almost every relevant country and, although some were harder than others, reform in science and technology policy is more difficult than all of them. 

  36. National Innovation Systems: A Comparative Analysis 1993 Nelson 

  37. Southeast Asian Paper Tigers: From Miracle to Debacle and Beyond 2003 Hamilton-Hart 

  38. Malaysia: Consultative Mechanisms and Economic Governance Case Study 2000 Biddle 

  39. Slater, Dan. Iron Cage in an Iron Fist: Authoritarian Institutions and the Personalization of Power in Malaysia. Comparative politics, vol.36, no.1, 81-.

  40. Collective Action in East Asia: How Ruling Parties Shape Industrial Policy 1998 Noble 

  41. It is true that the research design does not control directly for whether the crisis impacted the countries of the region differently. Nevertheless, theory would suggest that reform should have been easiest in the worst-hit country, Thailand, and most difficult in the least affected country, Singapore. That these outcomes were reversed suggests different causes. 

  42. Narayanan, Suresh. Fiscal Reform in Malaysia: Behind a Successful Experience. Asian survey, vol.36, no.9, 869-881.

  43. Personal conversation with two CEOs-one from an American firm and one from a Japanese firm-at the MDC's Advisory Panel meetings in Cyberjaya, 2000. 

  44. Crisis and Innovation in Asian Technology 2003 Doner 

  45. Industrialising Malaysia 11 1993 Jomo 

  46. The National Computer Board set up a similar program in 1996 to encourage MNCs to share electronics technology with local firms (see Felker , “Southeast Asian Industrialization,” pp. 255-282). 

  47. Author interviews with human resource management officials, Seagate Corporation, Malaysia and Singapore, 1999, 2000. See also “The Tide Turns for Seagate Technology,” Far Eastern Economic Review, May 2, 2002. 

  48. Pathways to Recovery: Bankers, Business and Nationalism in Thailand 2001 Hewison 

  49. A Question of Class: Capital, the State, and Uneven Development in Malaya 1986 Jomo 

  50. See Felker and Jomo , Southeast Asian Paper Tigers. 

  51. Narayanan , “Fiscal Reform in Malaysia,” pp. 869-881. 

  52. Asia's Next Giant: South Korea and Late Industrialization 1989 Amsden 

  53. 10.1007/978-1-349-27451-2 

  54. Malaysian Human Resource Development Fund Annual Report 1999 

  55. Author interviews with officials of the Malaysian Human Resource Development Fund, Kuala Lumpur, Malaysia, 1999, 2000. 

  56. Author interviews with officials of the NECTEC and NSTDA, Bangkok, 1998, 1999, 2000, 2001. 

  57. Ritchie , “Innovation Systems,” pp. 21-48; see also Felker , “Southeast Asian Industrialization,” pp. 255-282. 

  58. 10.1057/9780230377585 

  59. Lall S. , “Technology Policy and Competitiveness in Malaysia,” in Jomo and Felker , Technology, Competitiveness, and the State. 

  60. To illustrate, only one MNC firm in Salleh's study (p. 150) actually has a formal R&D department, and those that indicated they performed R&D limit their focus to process engineering. The bulk of technology is supplied by the parent company, making only local adaptation of both process and product necessary. The fact that most R&D is done outside Malaysia lessens the need for local technological capacity. But, in a vicious cycle, since most regions of Malaysia have poor stocks of intellectual capital, there is little capacity to increase R&D activities even if the demand were present. 

  61. See IMD competitiveness rankings at http://www01.imd.ch/wcy/ranking. 

  62. “Laboring Under a Misapprehension,” Bangkok Post, June 17, 1998. 

  63. Thailand Economic Monitor 43 2003 

  64. “Beyond Institutional Monocropping: Institutions, Capabilities, and Deliberative Development,” 2002 Evans 

  65. From 60 to 70 per 10,000 and 1.4 to 1.8, respectively, in Singapore; 5.8 to 5.1 per 10,000 and .34 to .22, respectively, in Malaysia; and 2.09 to 1.33 per 10,000 and .13 to .1, respectively, in Thailand (UNESCO and World Bank development indicators). 

  66. I am well aware of criticisms directed at the IMD rankings, and, given the proximity of those making the criticisms to the actual processes of data collection and analysis, the criticisms have some validity. But while one might argue that Thailand, for instance, was better (or perhaps worse?!) than the fortieth through thirty-fourth rankings it received, the scale does do a fairly good job at capturing the overall competitive position of the economy. 

  67. Author interview with corporate RandD manager 2000 

  68. See the Singapore Ministry of Manpower's Manpower 21 plan as an example. 

  69. Author interviews with officials from the Ministry of Manpower and Productivity and Standards Board, Singapore 1999, 2000. 

  70. Southeast Asia's Industrialization: Industrial Policy, Capabilities, and Sustainability 115 2001 Low 

  71. Evans , Embedded Autonomy. 

  72. These functions used to be carried out by the Productivity and Standards Board before its responsibilities were divided among a number of ministries. 

  73. See Hicken A. and Ritchie B. K. , “The Origin of Credibility Enhancing Institutions in Southeast Asia,” paper delivered at the American Political Science annual meeting, Boston, 2002; North D. C. and Weingast B. R. , “Constitution and Commitment: The Evaluation of Institutions Governing Public Choice in Seventeenth-Century England,” Journal of Economic History 49 (December 1989); Cowhey P. F. , “Domestic Institutions and the Credibility of International Commitments: Japan and the United States,” International Organization 47, no. 2 (Spring 1993); Fearon J. D. , “Domestic Political Audiences and the Escalation of International Disputes,” American Political Science Review 88, no. 3 (September 1994); Martin L. , Democratic Commitments (Princeton: Princeton University Press, 2000); and Henisz W. J. , Politics and International Investment: Measuring Risk and Protecting Profits (London: Edward Elgar Publishers, 2002). 

  74. Hard Disk Drive Association Conference, Bangkok, 1999. 

  75. Author interview with corporate officers from Seagate Corporation, Singapore, 2000. 

  76. Hamilton-Hart, Natasha. The Singapore state revisited. The Pacific review, vol.13, no.2, 195-216.

  77. Arnold Bell , et al., Enhancing Policy and Institutional Support. 

  78. “Institutions and Growth in East Asia,” 2003 Haggard 

  79. Hicken and Ritchie , “The Origin of Credibility Enhancing Institutions in Southeast Asia.” 

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