DVA3701
Assignment 7 Semester 1 2026
Unique number:
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.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +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
Assignment 7 Semester 1 2026
Unique number:
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.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +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
