Swee Discusses East Asia

Rapid economic growth in Taiwan, Hong Kong, Singapore and South Korea has been fueled by the use of technology and the free market system, a leading expert on East Asian political economy said in a speech at the Yenching Library yesterday.

Goh Keng Swee, executive chair of the Institute of East Asian Political Economy, made these remarks as part of the fourth annual K.T. Li lecture before a crowd of 125.

Goh analyzed the economic histories of Taiwan, Hong Kong, Singapore and South Korea--which he termed the "Four Dragons"--saying that nations without cutting-edge technology have a head start on catching up with more developed countries.

"Latecomers enjoy an easier learning process and don't have to reinvent the wheel," Goh said.

Goh said East Asian countries have created a body of talented and educated engineers both by taking advantage of educational opportunites in the West and by reforming their systems of primary education. It is this educated work force, Goh said, which is driving the economic boom in the "Four Dragons."

"Rapid accumulation of knowledge leads to rapid accumulation of capital," Goh said.

Goh, who served as the deputy prime minister of Singapore in 1973, strongly rejected arguments by some economists that high investment and savings rates drive economic growth.

Goh repeatedly emphasized the need for a free market system to "reward ability and performance and punish failure."

In the question-and-answer session which followed the lecture, Goh said a chief failure of the People's Republic of China is its inability to provide incentive for talented managers.

Some audience members interviewed after the speech said Goh avoided several questions about why economic growth had not been accompanied by democracy. In response to one audience member's question, Goh said he could not think of any downside to growth in Singapore, the lecturer's home country.

"I think Dr. Goh made good points about education and market forces," said Jan Foo '94, "although he was very silent about the role of politics in government."

The K.T. Li lectures, sponsored by the Harvard University Council for Economic Affairs, are named after the physicist-turned-economist who oversaw the economic recovery in Taiwan.

Li himself gave the first and second K.T. Li lectures.