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By Shiu-Fai Wong Ph.D. in Economics (auth.)

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Their outcomes will form the backbone of the argument here in this book. , Vogel 1996; Story and Walter 1997; King and Wood 1999; Busch 2002; Grossman 2003). While some governments have made a tremendous step forward to regulate their industries for consumers, others are afraid that regulations are unfriendly to business and that they ultimately make a mess of industrial growth. , renewable energies in the 1980s and early 1990s), others have heavily regulated and controlled their E-T sectors. , 2004; 2005).

Pempel 1977; Schmitter and Lehmbruch 1979; McCormick and Sugimoto 1986; Woronoff 1988; Wolferen 1989). Nonetheless, one of the earliest empirical attempts at scrutinizing state-societal institutions is Chalmers Johnson’s MITI and the Japanese Miracle in 1982, which attributed the rapid economic growth of Japan to the efforts of the Ministry of International Trade and Industry (MITI or METI today). He pointed out that the nature of the Japanese institutional structure was very different from that of the United States, leading to the two countries 28 Tweaking Institutions following very different economic policy patterns.

One of the earliest findings on the causal relationship between state power and national performance was the guiding type of state power endorsed by Robert Wade’s (1990) lessons from East Asia in his book Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. In this Wade put forward a “governed market” (GM) theory denoting that a “strong” state’s governing role and its strategic industrial policies are central to national development. Wade further suggested that superior economic performance can be achieved through a strong state approach by showing “causal” relationships between the strategic industrial policies and the exceptional economic achievements of Japan and the newly developed countries (NICs).

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