The USA and the Rise of East Asia since 1945: Dilemmas of by Jacques Hersh (auth.)
By Jacques Hersh (auth.)
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Additional info for The USA and the Rise of East Asia since 1945: Dilemmas of the Postwar International Political Economy
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Theoretically it was assumed that the market would tend toward Juli employment equilibrium making a lack of aggregate demand inconceivable. Given the assumed responsibility of safeguarding the system in both the Atlantic and the Pacific regions, the 39 40 The USA and the Rise 0/ East Asia United States needed strong allies. The US thus had areal stake in the functioning of the economies of its partners. The emergence of the Soviet bloc as a perceived challenge together with the problems of economic underdevelopment in the former colonial world didn't leave the United States any valid option but to stay the course.
At the time this was expected to remain a permanent state of affairs between the two countries. In recently declassified material, prepared in 1955 by the CIA and other intelligence agencies, Japan was portrayed as an economic pigmy (Jim Mann, International Herald Tribune, 24 Sept. 1991). Under these circumstances, the lure of the Chinese market as an outlet for manufactured goods explains the reluctance of Japanese politicians to approve American determination on the China embargo. Another source of discordance in the bilateral relationship was connected to the US change of heart on the armament issue.
But as Bienefeld points out, this was not the result of a generalliberalisation of trade, granting freer access to exports of all developing countries. The markets of the core-countries were selectively opened to specific countries and for particular products (1982, 50). Concerning the second condition, investments in these countries were encouraged by officially backed export credit schemes and expanded investment guarantees. Last but not least, military backing for the NIe regimes constituted an important element in giving confidence to potential investors.