DVA3701
Assignment 7 Semester 1 2026
Unique number: 108584
Due Date: 17 April 2026
A CRITICAL ANALYSIS OF THE DEVELOPMENTAL STATE MODEL IN EAST ASIAN
NEWLY INDUSTRIALISING COUNTRIES AND ITS APPLICABILITY TO SOUTH AFRICA
1. INTRODUCTION
The developmental model linked to the Newly Industrialised Countries refers to a form of
state led capitalism that supported rapid economic growth in countries such as South Korea
and Taiwan. These countries managed to transform from largely agricultural economies into
industrial and export driven economies within a short period. Their success has often been
presented as an example for developing countries. However, this model was shaped by
specific historical, political and global conditions that may not easily exist elsewhere. South
Africa, with its own social, economic and political challenges, faces questions about whether
it has the institutional strength and political will to replicate such a model. This discussion
examines the developmental model used by the NICs, evaluates its strengths and
weaknesses, and then considers whether South Africa has the capacity to follow a similar
path. The aim is to present a balanced view that recognises both possibilities and limitations
within the South African context.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
A CRITICAL ANALYSIS OF THE DEVELOPMENTAL STATE MODEL IN EAST
ASIAN NEWLY INDUSTRIALISING COUNTRIES AND ITS APPLICABILITY TO
SOUTH AFRICA
1. INTRODUCTION
The developmental model linked to the Newly Industrialised Countries refers to a
form of state led capitalism that supported rapid economic growth in countries such
as South Korea and Taiwan. These countries managed to transform from largely
agricultural economies into industrial and export driven economies within a short
period. Their success has often been presented as an example for developing
countries. However, this model was shaped by specific historical, political and global
conditions that may not easily exist elsewhere. South Africa, with its own social,
economic and political challenges, faces questions about whether it has the
institutional strength and political will to replicate such a model. This discussion
examines the developmental model used by the NICs, evaluates its strengths and
weaknesses, and then considers whether South Africa has the capacity to follow a
similar path. The aim is to present a balanced view that recognises both possibilities
and limitations within the South African context.
2. HISTORICAL OVERVIEW OF THE DEVELOPMENTAL MODEL USED BY THE
NICS
The developmental model used by the Newly Industrialised Countries in East Asia
developed during the Cold War period. At that time, countries such as South Korea
and Taiwan were seen as examples of capitalist success. Early interpretations
suggested that their growth came from free markets and limited state intervention.
This view was later challenged as more evidence showed that the state played a
central role in guiding economic development.
The East Asian states did not follow pure capitalism. Instead, they adopted what is
often called a developmental state approach. In this system, the government actively
directed economic activities. The state controlled key financial resources, especially
banks, which allowed it to decide where investment should go. This made it possible
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 7 Semester 1 2026
Unique number: 108584
Due Date: 17 April 2026
A CRITICAL ANALYSIS OF THE DEVELOPMENTAL STATE MODEL IN EAST ASIAN
NEWLY INDUSTRIALISING COUNTRIES AND ITS APPLICABILITY TO SOUTH AFRICA
1. INTRODUCTION
The developmental model linked to the Newly Industrialised Countries refers to a form of
state led capitalism that supported rapid economic growth in countries such as South Korea
and Taiwan. These countries managed to transform from largely agricultural economies into
industrial and export driven economies within a short period. Their success has often been
presented as an example for developing countries. However, this model was shaped by
specific historical, political and global conditions that may not easily exist elsewhere. South
Africa, with its own social, economic and political challenges, faces questions about whether
it has the institutional strength and political will to replicate such a model. This discussion
examines the developmental model used by the NICs, evaluates its strengths and
weaknesses, and then considers whether South Africa has the capacity to follow a similar
path. The aim is to present a balanced view that recognises both possibilities and limitations
within the South African context.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
A CRITICAL ANALYSIS OF THE DEVELOPMENTAL STATE MODEL IN EAST
ASIAN NEWLY INDUSTRIALISING COUNTRIES AND ITS APPLICABILITY TO
SOUTH AFRICA
1. INTRODUCTION
The developmental model linked to the Newly Industrialised Countries refers to a
form of state led capitalism that supported rapid economic growth in countries such
as South Korea and Taiwan. These countries managed to transform from largely
agricultural economies into industrial and export driven economies within a short
period. Their success has often been presented as an example for developing
countries. However, this model was shaped by specific historical, political and global
conditions that may not easily exist elsewhere. South Africa, with its own social,
economic and political challenges, faces questions about whether it has the
institutional strength and political will to replicate such a model. This discussion
examines the developmental model used by the NICs, evaluates its strengths and
weaknesses, and then considers whether South Africa has the capacity to follow a
similar path. The aim is to present a balanced view that recognises both possibilities
and limitations within the South African context.
2. HISTORICAL OVERVIEW OF THE DEVELOPMENTAL MODEL USED BY THE
NICS
The developmental model used by the Newly Industrialised Countries in East Asia
developed during the Cold War period. At that time, countries such as South Korea
and Taiwan were seen as examples of capitalist success. Early interpretations
suggested that their growth came from free markets and limited state intervention.
This view was later challenged as more evidence showed that the state played a
central role in guiding economic development.
The East Asian states did not follow pure capitalism. Instead, they adopted what is
often called a developmental state approach. In this system, the government actively
directed economic activities. The state controlled key financial resources, especially
banks, which allowed it to decide where investment should go. This made it possible
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
