Try to claim that these countries are doing well because they are ‘smart’ is ridiculous.
The answer is clear - the countries that have done well in Asia are the ones which have embraced capitalism and free trade. What’s the difference between North Korea and South Korea? North Korea is a capitalist country with open borders, and North Korea is a communist country with relatively closed borders.
Hong Kong started with the same population mix as China - no intelligence difference. Hong Kong was run in a “Laissez-Faire” manner by the British governor, and to this day has one of the least regulated economic systems in the world Hong Kong has been an economic miracle - a magnet for foreign capital.
You can look at countries that made major turnarounds in their economic fortunes, and it’s always correlated with the opening of trade and reduction of restrictions on economic behaviour. The poorest countries in the region (for example, Vietnam) were the last remnants of communist economics. Vietnam is starting to turn around, but only because it has gradually accepted capitalism and trade into the mix.
South Korea, Singapore, Indonedia, and even Japan used to be thought of as ‘sweat shop’ nations - places which only had the advantage of very cheap labor. These countries had populations that had strong work ethics - they had to, since they worked their asses off just to survive.
These countries started off as sweatshop nations, allowed themselves to go through that phase, and saw huge influxes of foreign capital as as result. That allowed them to build modern infrastructures and drive up the value of their labor, which improved the lives of the people, allowed them to become better educated and healthy, and gave them even more of a competitive advantage. It’s a ‘virtuous cycle’. Having started with virtually no infrastructure, they started fresh with the latest in technology and building techniques and gained yet another advantage.
The same thing happened with Germany to some extent. Having a good chunk of its (old) industrial base destroyed in WWII, and then rebuilding with more modern factories and infrastructure gave them an early advantage in the 1950’s and 1960’s, and their economy exploded. (West Germany, that is. east Germany remained a communist hellhole).
So here’s the ingredients, if you want to cook up your own economic miracle:
- A stable government
- Economic freedom
- Free Trade
- A peaceful population with a strong work ethic
- A comparative advantage in cheap labor, to start.
The last is actually rather important. Nations that have other comparative advantages, specifically around resources, have not done so well, despite getting huge influxes of foreign capital. The reason is that the resources usually fall quickly into the hands of governments or oligarchs, and therefore actually prop up centralized systems of government. The middle east is a good example. Foreign aid to Africa is another - rather than building wealth from the ground up through the people (and therefore developing robust, distributed economies), the aid flows in to corrupt governments, which use it to buy off cronies and maintain the systems that cause the poverty in the first place.
When the comparative advantage comes from the people themselves, governments are forced to back off and allow their economies to develop.
So if you want to predict the next emerging first-world countries, just make a list of the biggest ‘sweat shop’ nations today, and filter the list by selecting the ones that have the most open markets and the least amount of government interference.