Question
What connections can be drawn between East Asia's high economic growth rates and its Confucian heritage?
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PhD-Qualified Specialist
Confucianism, derived from the teachings of the Chinese philosopher Confucius, influences China, Korea, and Taiwan through shared cultural elements including family values, community solidarity, paternalism, entrepreneurship, state coordination, and educational emphasis.
Key Connections to Economic Growth
Educational Focus: Kahn (1979) first argued that "Confucianism could be consistent with economic growth; particularly its emphasis on education."
Organisational Harmony: South Korea demonstrates how traditional Confucian principles — such as respect for education and "family-like harmony in Chaebol Corporation" — combined with modern technology to enhance economic performance.
Trust and Relations: "High levels of trust are conducive to economic growth," citing evidence that this trust correlates with close relationships in East Asian nations, supporting their economic expansion.
Hierarchical Structure: Confucian emphasis on harmony and hierarchy, where "those below should obey those above," aligned with family-firm dominance in East Asian economies.
Policy Flexibility: Confucianism shaped industrialisation policies in Japan and South Korea by adapting to "local circumstances and political ideology through flexible manner," enabling interventionist economic measures.
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