Abstract 

Scholars have credited a model of state-led capitalism called the developmental state with producing the first wave of the East Asian economic miracle. Using historical evidence based on original archival research, this talk offers a geopolitical explanation for the origins of the developmental state. In contrast to previous studies that have emphasized colonial legacies or domestic political factors, I argue that the developmental state was the legacy of the rivalry between the United States and Communist China during the Cold War. Responding to the acute tensions in Northeast Asia in the early postwar years, the United States supported emergency economic controls in Japan, South Korea, and Taiwan to enforce political stability. In response to the belief that the Communist threat would persist over the long term, the U.S. strengthened its clients by laying the foundations of a capitalist, export-oriented economy under bureaucratic guidance. The result of these interventions was a distinctive model of state-directed capitalism that scholars would later characterize as a developmental state.

I verify this claim by examining the rivalry between the United States and the Chinese Communists and demonstrating that American threat perceptions caused the U.S. to promote unorthodox economic policies among its clients in Northeast Asia. In particular, I examine U.S. relations with the Chinese Nationalists on Taiwan, where American efforts to create a bulwark against Communism led to the creation of an elite economic bureaucracy for administering U.S. economic aid. In contrast, the United States decided not to create a developmental state in the Philippines because the Philippine state was not threatened by the Chinese Communists. Instead, the Philippines faced a domestic insurgency that was weaker and comparatively short-lived. As a result, the U.S. pursued a limited goal of maintaining economic stability instead of promoting rapid industrialization. These findings shed new light on the legacy of statism in American foreign economic policy and highlight the importance of geopolitics in international development.

Bio

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James Lee is a Ph.D. Candidate in the Department of Politics at Princeton University. He specializes in International Relations with a focus on U.S. foreign policy in East Asia and relations across the Taiwan Strait. James also serves as the Senior Editor for Taiwan Security Research, an academic website that aggregates news and commentary on the economic and political dimensions of Taiwan's security.

This event is co-sponsored by the Taiwan Democracy Project in the Center on Democracy, Development, and the Rule of Law (CDDRL) and the U.S.-Asia Security Initiative in the Shorenstein Asia-Pacific Research Center (APARC), both part of the Freeman Spogli Institute for International Studies.

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Abstract

The existence of two Chinese states—one controlling mainland China, the other controlling the island of Taiwan—is often understood as a seemingly inevitable outcome of the Chinese civil war. Defeated by Mao Zedong, Chiang Kai-shek’s Nationalists fled to Taiwan to establish a rival state, thereby creating the “Two Chinas” dilemma that vexes international diplomacy to this day. Accidental State challenges this conventional narrative to offer a new perspective on the founding of modern Taiwan.

Hsiao-ting Lin marshals extensive research in recently declassified archives to show that the creation of a Taiwanese state in the early 1950s owed more to serendipity than careful geostrategic planning. It was the cumulative outcome of ad hoc half-measures and imperfect compromises, particularly when it came to the Nationalists’ often contentious relationship with the United States.

Taiwan’s political status was fraught from the start. The island had been formally ceded to Japan after the First Sino–Japanese War, and during World War II the Allies promised Chiang that Taiwan would revert to Chinese rule after Japan’s defeat. But as the Chinese civil war turned against the Nationalists, U.S. policymakers reassessed the wisdom of backing Chiang. The idea of placing Taiwan under United Nations trusteeship gained traction. Cold War realities, and the fear of Taiwan falling into Communist hands, led Washington to recalibrate U.S. policy. Yet American support of a Taiwan-based Republic of China remained ambivalent, and Taiwan had to eke out a place for itself in international affairs as a de facto, if not fully sovereign, state.

Biography

Hsiao-ting Lin is a research fellow and curator of the East Asia Collection at the Hoover Institution. He holds a BA in political science from National Taiwan University (1994) and an MA in international law and diplomacy from National Chengchi University in Taiwan (1997). He received his DPhil in oriental studies in 2003 from the University of Oxford, where he also held an appointment as tutorial fellow in modern Chinese history. In 2003–4, Lin was a postdoctoral fellow at the Institute of East Asian Studies, University of California at Berkeley. In 2004, he was awarded the Kiriyama Distinguished Fellowship by the Center for the Pacific Rim, University of San Francisco. In 2005–7, he was a visiting fellow at the Hoover Institution, where he participated in Hoover’s Modern China Archives and Special Collections project. In April 2008, Lin was elected a fellow of the Royal Asiatic Society of Great Britain and Ireland for his contributions to the studies of modern China’s history.

Lin’s academic interests include ethnopolitics and minority issues in greater China, border strategies and defenses in modern China, political institutions and the bureaucratic system of the Chinese Nationalist Party (Kuomintang), and US-Taiwan military and political relations during the Cold War. He has published extensively on modern Chinese and Taiwanese politics, history, and ethnic minorities, including Accidental State: Chiang Kai-shek, the United States, and the Making of Taiwan (Harvard University Press, 2016); Modern China’s Ethnic Frontiers: A Journey to the West (Routledge, 2011); Breaking with the Past: The Kuomintang Central Reform Committee on Taiwan, 1950–52 (Hoover Press, 2007); Tibet and Nationalist China’s Frontier: Intrigues and Ethnopolitics, 1928–49 (UBC Press, 2006), nominated as the best study in the humanities at the 2007 International Convention of Asia Scholars; and over a hundred journal articles, book chapters, edited volumes, reviews, opinion pieces, and translations. He is currently at work on a manuscript that reevaluates Taiwan’s relations with China and the United States during the presidency of Harry Truman to that of Jimmy Carter.

This event is sponsored by the Taiwan Democracy Project in the Center on Democracy, Development, and the Rule of Law. It is free and open to the public, and lunch will be served. Please RSVP by November 28.

Mr. Rudd served as Australia’s 26th Prime Minister from 2007 to 2010, then as Foreign Minister from 2010 to 2012, before returning to the Prime Ministership in 2013. As Prime Minister, Mr. Rudd led Australia’s response during the Global Financial Crisis. Australia's fiscal response to the crisis was reviewed by the IMF as the most effective stimulus strategy of all member states. Australia was the only major advanced economy not to go into recession. Mr. Rudd is also internationally recognized as one of the founders of the G20 which drove the global response to the crisis, and which in 2009 helped prevent the crisis from spiraling into a second global depression.

As Prime Minister and Foreign Minister, Mr. Rudd was active in global and regional foreign policy leadership. He was a driving force in expanding the East Asia Summit to include both the US and Russia in 2010. He also initiated the concept of transforming the EAS into a wider Asia Pacific Community to help manage deep-routed tensions in Asia by building over time the institutions and culture of common security in Asia. On climate change, Mr. Rudd ratified the Kyoto Protocol in 2007 and legislated in 2008 for a 20% mandatory renewable energy target for Australia. Mr. Rudd launched Australia's challenge in the International Court of Justice with the object of stopping Japanese whaling in the Southern Ocean. Mr Rudd drove Australia’s successful bid for its current non-permanent seat on the United Nation’s Security Council and the near doubling of Australia's foreign aid budget.

Mr. Rudd remains engaged in a range of international challenges including global economic management, the rise of China, climate change and sustainable development. He is on the International Advisory Panel of Chatham House. He is a proficient speaker of Mandarin Chinese, a Visiting Professor at Tsinghua University and funded the establishment of the Australian Centre on China in the World at the Australian National University. He was a co-author of the recent report of the UN Secretary General's High Level Panel on Global Sustainability – “Resilient People, Resilient Planet" and chairs the World Economic Forum's Global Agenda Council on Fragile States. He also remains actively engaged in indigenous reconciliation.

The more a country depends on aid, the more distorted are its incentives to manage its own development in sustainably beneficial ways. Cambodia, a post-conflict state that cannot refuse aid, is rife with trial-and-error donor experiments and their unintended results, including bad governance—a major impediment to rational economic growth. Massive intervention by the UN in the early 1990s did help to end the Cambodian civil war and to prepare for more representative rule. Yet the country’s social indicators, the integrity of its political institutions, and its ability to manage its own development soon deteriorated. Based on a comparison of how more and less aid-dependent sectors have performed, Prof. Ear will highlight the complicity of foreign assistance in helping to degrade Cambodia’s political economy. Copies of his just-published book, Aid Dependence in Cambodia, will be available for sale. The book intertwines events in 1990s and 2000s Cambodia with the story of his own family’s life (and death) under the Khmer Rouge, escape to Vietnam in 1976, asylum in France in 1978, and immigration to America in 1985.

Sophal Ear was named a Young Global Leader by the World Economic Forum in 2011 and a TED Fellow in 2009. His next book—The Hungry Dragon: How China’s Resources Quest is Reshaping the World, co-authored with Sigfrido Burgos Cáceres—will appear in February 2013. Prof. Ear is vice-president of the Diagnostic Microbiology Development Program, advises the University of Phnom Penh’s master’s program in development studies, and serves on the international advisory board of the International Public Management Journal. He wrote and narrated “The End/Beginning: Cambodia,” an award-winning documentary about his family’s escape from the Khmer Rouge. He has a PhD in political science, two master’s degrees from the University of California-Berkeley, and a third master’s from Princeton University.