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Reckoning
The later 1980s were a period of erratic growth—rapid but unstable. Tigers and sea turtles spurred development throughout the decade: East Asia’s “tiger” economies—Taiwan, Hong Kong, Singapore, and South Korea—paved China’s way in state-led, export-intensive growth. China's “Sea turtles” were the many overseas Chinese who brought capital and knowledge acquired abroad back to their mother country. However, unresolved contradictions lurked in the new political economy of Deng’s China. Frustrations over stalled political reform—enflamed by widespread urban economic grievances over inflation and corruption—erupted in street demonstrations that paralyzed the PRC in the spring of 1989. The Tiananmen crisis would have lasting political repercussions on the cause of democracy—but also unintended economic aftereffects. |
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Autocracy and Economic Freedom Brought GrowthPeriod: Reckoning (1985-89)
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Click to expand These newly resurgent Asian countries were able to develop because of their political autocracy and economic freedom. This undoubtedly applies to China. Because China was a very closed country prior to the reform, China's labor costs and environmental costs were the lowest. Also, compared with South Korea, Taiwan, Singapore and Hong Kong, its political centralization was the strongest. In past 30 years of globalization, China's opportunities and growth surpassed that of the Four Tigers because of this combination of low cost and high political centralization.
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