State-Led Capitalism in East Asia
East Asia is the third world region that is crucial for an investigation of international economic conflicts and cooperation. The rise of East Asia as the ‘factory of the world’ since the 1970s is as important for the global political economy as US-led financial globalization and European integration. This chapter begins with an explanation of East Asia’s role in the trilemma triangle and then turns to an analysis of the historic genesis of the East Asian (developmental) state-led model of capitalism. We then investigate the economic origins of the East Asian success story and in particular the formation of large export-oriented business conglomerates. Finally, we look at the political foundation of the East Asian model, which can be described as an authoritarian corporatist model that is shaped by the alliance of state and business at the expense of labour.