The phenomenon of “economic miracles”: Reassessing historical experience

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Abstract

The paper presents comparative analysis of macroeconomic policies in various countries (in Europe, Asia, North and South America) that had periods of long-term economic growth within the time range between 1933 and 2019. The analysis focuses on different measures adopted by governments of these countries with the aim of making an economic breakthrough and setting a country on a new path of development. The research demonstrates that completely oppose measures proved effective in different countries at different points in time. Some states enhanced government intervention in the economy, while others fostered economic liberalization. In some countries industrial concentration took place, whereas in others mainly small and medium-sized enterprises received support from the government. The same applies to improvement/deterioration in labour standards. Therefore, it is incorrect to try to build an economic system by merely copying foreign experience in order to foster socio-economic and technological development. The above-mentioned thesis is confirmed by referring to the historical experience of thirteen countries. There are, however, traits that countries that experienced long-term economic growth have in common. All of them conducted expansionary macroeconomic policy, supported key economic sectors (primarily agriculture and heavy industry), introduced breakthrough and incremental innovations, made investments in infrastructure, stimulated exports as well as accumulated social capital.

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About the authors

V. L. Ustyuzhanin

Central Economics and Mathematics Institute, Russian Academy of Sciences

Author for correspondence.
Email: vladimir-ustyuzhanin@rambler.ru
Russian Federation, Moscow

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2. Fig. 1. GDP per capita in West Germany, euros (PPP 1995)

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3. Fig. 2. GDP per capita in Mexico, pesos

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4. Fig. 3. U.S. GDP, trillion dollars. US DOLLARS

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5. Fig. 4. GDP of South Korea, billion USD. USD

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6. Fig. 5. GDP of Ireland, billion USD. USD

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7. Fig. 6. China's GDP growth rate, % y-o-y

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