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Blink 3 of 8 - The 5 AM Club
by Robin Sharma
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How Asia Works summary
Joe Studwell
Success and Failure in the World’s Most Dynamic Region
19 mins
Brief summary
How Asia Works by Joe Studwell explores how Japan, South Korea, and Taiwan achieved significant economic growth and how countries like Philippines and Thailand failed.
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How Asia Works
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Key idea 1 of 8
To start development in poor countries, boost agricultural output by promoting household farming.
For a long time, Asia lagged behind the West’s technological advances. But then Japan, South Korea, Taiwan and, most recently, China, started to catch up and have now transformed into economic powerhouses. How did they do it?
Successful Asian states promoted small-scale household farming instead of moving prematurely to large-scale farming. Household farming maximizes output by effectively using the available labor force, while large-scale farming generates few jobs and low agricultural output.
This may seem counterintuitive at first, as huge farms appear to be the most efficient method of agricultural production. However, unlike in the manufacturing sector, increasing scale in agriculture doesn’t create higher output or better quality. Only fertilizer and intensive labor can improve yields and quality.
What’s more, the mechanization that comes along with large-scale farming can be harmful in poor countries because it reduces the amount of farming jobs available and the yield each plant can produce. Mechanization only makes sense if labor is scarce, which is typically not the case in poor countries.
In fact, human labor-intensive techniques are crucial to getting the highest yields possible.
For example, shade-tolerant vegetables like celery can be cultivated in the shade of taller plants, which makes it possible to grow more within the same area – but this requires planting and harvesting by hand. Such techniques create agricultural outputs that dwarf those of machines and large-scale farming.
Promoting household farming also has other positive effects: it creates jobs in developing countries.
Since the industry and service sectors are not strong in poor countries, the labor force has no other employment alternative than agriculture. That’s why it makes sense to have an agricultural sector composed of household farms that offer lots of jobs until better alternatives of employment come along.
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What is How Asia Works about?
How Asia Works examines the economic development of nine Asian countries and, in the process, sketches a blueprint for other developing nations seeking to achieve sustainable economic growth. Joe Studwell explains why some Asian economies have boomed while others have fallen behind, revealing what history has proved works – and what doesn’t.
How Asia Works Review
How Asia Works (2013) is a compelling exploration of how certain Asian countries have achieved remarkable economic success. Here's why this book is worth reading:
- It provides a thorough analysis of the successful development strategies employed by countries like Japan, South Korea, and Taiwan, offering valuable insights into their economic miracles.
- The book offers a balanced view of both the successes and failures of these countries, providing a realistic perspective on the challenges they faced and how they overcame them.
- Backed by extensive research and filled with fascinating historical and economic facts, the book presents a captivating narrative that makes the subject matter engaging and far from boring.
Best quote from How Asia Works
Without the dispossession of landlords in Japan and Taiwan there would have been no increased agricultural surplus to prime industrialization.
—Joe Studwell
Who should read How Asia Works?
- Anyone interested in developing economies and international economics
- Asian history enthusiasts
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How Asia Works FAQs
What is the main message of How Asia Works?
Learn how Asian countries achieved rapid economic growth and the lessons we can take from their success.
How long does it take to read How Asia Works?
Reading time may vary, but the Blinkist summary can be read in just 15 minutes.
Is How Asia Works a good book? Is it worth reading?
Discover why How Asia Works is a must-read for those interested in understanding the development strategies of Asian countries.
Who is the author of How Asia Works?
The author of How Asia Works is Joe Studwell.
What to read after How Asia Works?
If you're wondering what to read next after How Asia Works, here are some recommendations we suggest:
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