AB312 POLITICAL ECONOMY OF EAST ASIA Lecture Group 1: T01, T4, T7, T10, & T13 Course Description

n and Scope The aim of this course is to provide students with an understanding in the political economy of East Asia so that students will be prepared to face the real complexities of the region. The course starts with the concepts of political economy and recent economic development in East Asia, especially Singapore in the world context. It then discusses government-business relationship in Japan, foreign direct investment and trade flows, macroeconomic policy, transitional economies in East Asia. It also covers current issues in regional integration and world trade organization, debt issues, capital flows and international financial system as well as demography and dependency.

Week No. 1

Topics 1. Concepts of Political Economy (by Prof David Reisman) 1.1 Course objectives and scope 1.2 Market failure 1.3 Law and order 1.4 National defense 1.5 The infrastructure 1.6 Regulation 1.7 Welfare 1.8 Government failure 2. Transformation in the Singapore Economy (19612000): Course and Causes (by Prof Lim Chong Yah) 2.1 Singapores Current Growth level and Competitiveness 2.2 Singapores Real GDP, Saving, Inflation, Wage, Productivity, Unemployment, Exports, Balance of Payments, Exchange Rates, 2.3 Singapores Economic Restructure 1979-1981 2.4 Multi-Causality and Uni-Causal Explanations 3. Crisis Management in Singapore, 1961-2000 (by Prof Lim Chong Yah) 3.1 Singapore Crisis Years 3.2 The First Crisis - 1973/74 3.3 The Second Crisis - 1985/86 3.4 The Third Crisis 1997/1998 3.5 The Third Crisis Recovery and Policy Options 3.6 The Current Recession

Readings Course Notes Online and References Attached

Course Notes Online and References Attached LCY

Course Notes Online and References Attached LCY

4. Macroeconomic Performance and GovernmentBusiness Relationship in Japan (by Dr Tom Park) 4.1 Japans Pre-World War II Economy 4.2 Japans Postwar Economic Performance and the Size of the Japanese Economy 4.3 Japans Sluggish Economic Performance in the 1990s 5.5 4.4 Industrial Policy: Iron Triangle, MITI, and Main Bank System 5. Industrial Policy and Foreign Direct Investment (by Dr Soon Lee Ying) 5.1 Why industrialize? 5.2 Industrial Policies 5.3 Role of FDI 5.4 FDI policies and flows Impact of 1997 Financial Crisis 6. Privatization, Deregulation and Liberalization (by Dr Liu Yunhua) 6.1 The general framework of market economy: market structure, market failure, public sectors and private sectors 6.2 Origin of the issue: the relationship of efficient resources allocation and the nature of privatization, deregulation and liberalization 6.3 Practices of privatization, deregulation and liberalization, and evaluation of the performance

Course Notes Online and References Attached

Course Notes Online and References Attached

Course Notes Online and References Attached

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7. Trade Flows in East Asia (by Dr Mike Leu) 7.1 Trade Contribution to Economic Growth 7.2 Commodity and Services Trade Flows 7.3 Intra-East Asia Trade 7.4 Inter-industrial and Intra-industrial Trade 7.5 Trade Polices Recess 8. Regional Integration and World Trade Organization (by Dr Wang Ruifang) 8.1 Forms, Levels Theory of Regional integration 8.2 Theory of integration 8.3 Recent Development in EU, NAFTA, APEC and AFTA 8.4 Regionalism and Globalism 8.5 Bilateral FTA between Singapore and Countries outside ASEAN

Course Notes Online and References Attached

Course Notes Online and References Attached

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9. Debt Issues and Capital Flows and International Financial System (by A/P Ng Beoy Kui) 9.1 Concept and composition of capital flows 9.2 Factors behind capital flows 9.3 Implications and financial crisis 9.4 National policy responses 9.5 International financial architecture 10. Macroeconomic Policy (by Dr Paul Yip) 10.1 Macroeconomic Policies in Southeast Asia

Course Notes Online and References Attached

from the 1960s and to the 1980s

10.2 Asset Inflation, Monetary and Exchange Rate

Course Notes Online and References Attached

Policies in the early 1990s 10.3 Role of governments and IMF during the Asian Financial Crisis 10.4 The Post-Crisis Period
12 11. Transition Economies in East Asia (by Dr Chen Kang) 11.1 Market Misery 11.2 An Ideal Society 11.3 Competition versus Computation 11.4 From Market to Plan 11.5 Why Did Planning Fail? 11.6 Is there A Third Way? 11.7 Transition From Plan To Market 11.8 The Case of China 12 Poverty, Inequality and Demography in East Asia (by Dr Shubhasree Seshanna) 12.1 Measures of Poverty and Inequality 12.2 Poverty in East Asia 12.3 Inequality in East Asia 12.4 Population Aging 12.5 Policy Implications of the Trends Course Notes Online and References Attached

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Course Notes Online and References Attached

References: AB312 Course Notes online with NTU Edventure-Blackboard (1) Lim Chong Yah, Southeast Asia: The Long Road Ahead, World Scientific Publishing Co. 2001. (2) Rao, Bhanoji, East Asian Economies: The Miracles, A Crisis and the Future, Singapore: McGraw-Hill, 2001 (3) Islam, Iyanatul and Anis Chowdhury, The Political Economy of East Asia: Post-crisis Debates, New York: Oxford University Press, 2000

(4) Liao, Kuotsai Tom, ed. Managing Economic Development in Asia: From Economic Miracle to Financial Crisis, Connecticut: Praeger, 2002. Method of Instruction Lectures: Tutorials: 2 hours per week 1 hour per week

Lectures commence in week 1 and end in week 13 Tutorials commence in week 2 and end in week 14 Course Assessment Besides the final examination, there will be a written assignment cum presentation starting from week 4 to 14. The purpose of the written assignment cum presentation is to provide students an opportunity to conduct research and express themselves clearly on current economic issues facing East Asia. In this exercise, students are grouped into 17 groups per lecture topic (except topic one). Each group is expected to hand in your essay to your respective tutor before your presentation starts. In your essay assignment, the essay should have at least 15 pages but not more than 25 pages of A 4 size paper with double-spacing. As for the presentation, we strongly encourage students to use Powerpoint for presentation purpose. Both essay assignment and presentation performance including class participation will be graded accordingly. All these constitute 30 per cent of the total marks. Written Assignment cum Presentation: Final Examination: 30% 70% 100%

Tutorials have two discussion questions from week 2 to week 3, and one discussion question plus presentation from week 4 to week 14 Staff Dr Mike Leu Prof David Reisman Prof Lim Chong Yah Dr Tom Park Dr Soon Lee Ying Dr Liu Yunhua Dr Wang Ruifang A/P Ng Beoy Kui* Dr Paul Yip Dr Chen Kang Dr Shubhasree Seshanna * Course Co-ordinator Office 1C-84 1B-43 1B-38 B1A-10 B1B-74 B2C-122 B1A-21 B2B-51 B1C-103 1A-09 B1A-20 Tel. 6790-4657 6790-5659 6790-5689 6790-6130 6790-4778 6790-4949 6790-6400 6790-5668 6790-4983 6790-6073 6790-6115 Email agjleu@ntu.edu.sg aardavid@ntu.edu.sg acylim@ntu.edu.sg adpark@ntu.edu.sg alysoon@ntu.edu.sg ayuliu@ntu.edu.sg arfwang@ntu.edu.sg abkng@ntu.edu.sg aslyip@ntu.edu.sg akachen@ntu.edu.sg Assesha@ntu.edu.sg