South Korea, Taiwan economic success depends on giving up surpassing _ shanghaizhengquanhuiguan

In the regulation of development strategy, South Korea, Taiwan's economic development is still its comparison, for reference. And most of the developing economies like the Government, Taiwan region in the early 1950s there catching up with the idea that the Crown must give priority to the development of heavy industry, but with South Korea in the 1970s, similar to Taiwan in the 50 's, giving priority to the development of heavy industry, soon appeared in high inflation. The reason is that there is no priority development of heavy industry comparative advantage, will give no viability of enterprises in many subsidies, but at that time, Taiwan or poor agricultural economy, bank deposits and rarely, only financial investment, but the financial capacity of the tax is very low, with the inevitable financial investments caused huge budget deficits, led to substantial issue of currency, 2nd high inflation occurs. Thus, the Economist, Jiang Shuo-kit made to Chiang Kai-shek, who cannot take the low interest rate policy, it is necessary to apply high interest rate policy, to encourage private savings. In the high interest rate policy, heavy investment cost is too high, no development, investment and private interest high, only development investment less light industrial projects, so that Taiwan region development to better follow the comparative advantage. Taiwan region every four years to develop an economic development plan, the plan is full of catching up and thought, but not officially supporting financial means, the means of bank loans, subsidies and catching up with the scheme into something on paper. In South Korea's development process, the Government has the intention of the catching-up, implementation, the Government also quickly rectify the error. Taiwan, South Korea on catch-up strategy of rapid correction is active, but rather under the economic reality of last resort. Because both are extremely poor economics of natural resources, population size is not large, if the pursuit of catching-up, unless you can get a large number of foreign investment, encounter financial bottleneck soon faced high inflation, economic stagnation. Taiwan in the 1950s, South Korea in the 1970s, according to comparative advantage in developing the economy, not willingly. Interestingly, this was not a fluke, but willing to succeed. But as economists from these known however do not know their successful experiences in them, summed up the reasons behind, become a kind of subjective awareness, completed from realm to realm of leap. This leap is very important, otherwise the economy recovered, catch-up strategy will resurface. South Korea in the 1980s would happen, 71 years of heavy machinery, heavy chemical industry priority development strategy proposed again. When the conditions for strong than 70 's many, many projects were still not belonging to catch-up, Enterprise viability and profitability is very low, initially relied on the banks of the cheap subsidized, domestic funds are exhausted, you borrow foreign funds, borrow more, and so after the outbreak of the East Asian financial crisis, the South Korean Government under the pressure of the IMF, cancel the overtaking enterprises special protection and support, and now, dozens of South Korea has closed down more than half of the business group. China is a major power, each people will be able to squeeze, squeezing out a lot of money, the introduction of the possibility of catching-up strategy than small economies. Therefore, in order to follow the comparative advantage of economic development, and will not be able to fully rely on the realm of external constraints, but should rely more on the realm of autonomy and rational choice.