Transition Of World Economic Order Since Modern Period And Role Of East Asia

This study analyzes world economic order centering on relations and negotiation among East Asian countries and their future roles. In the twentieth century global economy has entered into the US·China Cooperation System with the First China and US Strategic Economic Dialogue held in Washington in July 2009 as a starting point.This study examines the transition of world economic order by recognizing the changing economic order and what is the future role of East Asia. Western powers, before the 19th century, achieved modernization earlier than the East. The Opium wars are the starting point that reinforced the forceful penetration of the East by Western powers. To classify world economic order according to times it is clear that, in the nineteenth century, world economic order centered on England and in the twentieth century the new liberal world economic order centered on the US.In world economic order,20 newly advanced countries (G20), BRIC (Brazil, Russia, India and China), ASEAN+China, Japan, Korea and Shanghai Cooperation Organization (SCO) centering on China and Russia are rising while American influence on the international economic system keeps declining with the financial crisis of the US in 2008. The future world economic order has a possibility to change from a uni-polar system to a multi-polar system or no-polar system. In such changing economic order, East Asia is becoming the core of world economy and the roles of East Asia are becoming more important.The study focuses on the transitional process of world economic order, economic exchanges among East Asian countries, and future roles of East Asia as an axis of world economic order in the 21 st century.The ranges of the study are presented as follow:First, this study speculates on the transition of world economic order, focusing on political and economic aspects from the modern period when western power advanced into the East starting with the Opium wars to the present. Second, as world economic order has interacted in political and military activities as well as economic, this study focuses on analysis of their correlations. Third, in the transitional process of world economic order, this study analyses economic exchanges between East Asian countries and their influence. Finally, as world economic order centering on the US declines and a new economic order is approaching, this study deals with cooperation in respect to future roles of East Asia.This study consists of the following:Chapter 2 analyses theories involved in world economic order; Chapter 3 examines power gaining of western powers and its model; Chapter 4 examines economic exchanges among East Asian countries and influences; Chapter 5 examines trends of future world economic order and the role of East Asia; and Chapter 6 summarizes the study and presents implications.Each chapter of the study is summarized as follows:Chapter 2 speculates on the correlations theory in the transition of world economic order. It deals with correlations between the center and periphery countries, domination and Correlation Theory of Marxism-Leninism including theories of imperialism, colonialism, and Marxism. This includes the theory of realism focusing on correlations between realism and neo-realism, realism and world politics, economy, and criticism. It analyses the theory of liberalism focusing on liberalism, neo-liberalism, liberalism and world economic order and criticism of neo-liberalism to apply the results of the study.Chapter 3 deals with western powers gaining control in the modern period and its models. The chapter analyses the discovery of the New World, Industrial Revolution, and Europe's accumulation of primitive capital at the period when world economic order was formed, and the development of commercial capitalism. Then, it examines how Europe established world order since the medieval order collapsed. Europe reorganized European order by constructing the Vienna System since the Napoleon War ended. Western powers in the mid-19th century competitively accelerated the struggles of colonies and Imperialism wars.Expansion of such imperial powers worked as a chance to form an industrial capitalistic system in Europe. The most representative country among the western powers was England. With world economic order of the 19th century centering on England it was firmly established as rapid economic development was brought about thanks to the Industrial Revolution. Chapter 4 examines economic exchanges among East Asian countries and their influence since the modern period. This chapter analyses how economic exchanges have been developed among countries according to problematic periods and the opening up of these countries. As the historical, cultural, political and economic environments of Japan, Korea, China and Southeast Asia are different; their processes of modernization were also different.Firstly, this chapter deals with how Japan came to power and its economic exchanges. Japan was the first country to be modernized in East Asia. It achieved modernization through the Meiji Restoration of 1868 since it opened up in 1853. It won the First Sino-Japanese War in 1895 and came to dominate East Asia. In 1905, it won the Russo-Japanese War, invaded Korea and expanded its power to the Northeast area of China as an imperialist and militarist.In the 20th century, its expanded powers conflicted with the economic interests of western powers such as the US and England which led to military conflicts. The war of the Pacific which occurred in the Asian pacific lasted from 1941 to 1945 and Japan lost it.After World War II ended, Japan adopted an America-Japan alliance as a base of diplomatic policy while conforming to the US's world and East Asia governing strategy. Japan continued economic exchanges among East Asian countries and has grown to be one of the world's economic powers based on protection of the alliance system during the Cold War period and post-Cold War period. Since Japan grew to be the second biggest economy, it has become a member of G7 in Asia. However, the influence of the America-Japan alliance was declining as new industrial countries of East Asia started to emerge in 2008. In particular, in the post-cold war period since the late 1980s, economic exchanges among East Asian countries decreased due to Japan's continuous economic depression. Such a phenomenon was derived from the American-Japan alliance and diplomatic policy concentrated on western powers.Second, it discusses with models how Korea gained power and its economic exchanges. In opening the door to foreign powers and modernization, Korea suffered under Japanese colonization from 1910-1945, it was divided into north and south in 1945, and struggled with political turmoil due to the Korean War from 1950-1953, although an independent government was established in 1948. Then, active industrialization began in Korea from the 1960s. In the 1980s, Korea became a new industrial country in East Asia by introducing economic loans and technologies from the US and Japan based on a mutual-assistance system between Korea, the US and Japan during the military regime led by No Tae-Woo.Korea had economic exchanges with East Asian countries around the Pacific coast based on cooperation with the US and Japan for external diplomacy during the Cold War. Since then it expanded economic exchanges to socialist states such as Indochina, Laos, and Cambodia including China in the 1990s. The most characteristic economic exchange was between Korea and China based on friendly relations in August,1992. As of 2009, China trades the most with Korea. Therefore, in respect to economic exchanges with East Asian countries, we should pay more attention to industrial structure which is absolutely biased toward trade. Specifically, we should look for more diversified external trade as China and East Asia are absolutely important in economic exchanges with our country.Third, this chapter considers the rise of China and a model of economic exchange. China suffered from political confusion as it was almost colonized by Japanese imperialism since the Opium War in 1842. On October 1,1949, The Republic of China was established by a successful communist revolution and resisted against a bipolar system of the US and Russia. It formed international relations with the third world countries and had economic exchanges with them. As Deng Xiaoping accelerated the direction of Chinese reform in 1978, Chinese economic development was maximized and a distinctive system of socialism was successfully introduced. China has pursued pragmatic diplomacy based on an independent, practical and scientific ideology. China aimed to have friendly relationship with other countries while achieving stable development of its domestic economy. It has maintained a distinctive socialist system based on three representative theories of Marxism-Leninism, Maoism and Deng Xiaoping's Theory. However, in spite of such economic development, it has domestic challenges such as the gaps between the rich and poor, and the city and rural areas.Fourth, this chapter discusses the rise of Southeast Asia and a model of its economic exchanges. Southeast Asian countries have different geological, historical and cultural environments. They have considerable limits in their economic development due to long colonization by western powers. During the Cold War, the Pacific coast countries mainly had economic exchanges with Korea or Japan, and the Indochina Peninsular pursued economic exchanges with socialist countries including China. In this process, the foundation of ASEAN in 1967 was a chance to reinforce economic exchanges with East Asian countries and then, cooperative relations between ASEAN, Korea, China and Japan developed. Since the FTA between East Asia and China came into effect in January 2010, more active exchanges have been made. However, ASEAN has to overcome its limited role in world politics and economic order.Chapter 5 analyses the trend of future world economic order and the role of East Asia. It discusses what role East Asia should play in international reality where its political and economic status is on the rise. First, current world economic order has two conflicting problems of globalization and regionalism, which needs a new alternative. It indicates that the imbalance of world economy due to the side-effect of globalism should be overcome and world governance should be developed.Second, this chapter considers the main factors of future world economic order. First, neo-liberalism is declining and a world economy centering on the US is in crisis. In such circumstance, the cooperative system between China and the US has actively developed and East Asia has become an axis of world economic order.Third, each country of East Asia is very important in future economic order.As China has become a core of world economic order in the 21st century, they should contribute to the stability of world economy, solution of imbalance and global issues. Japan should be a leader in technological and capital transfer for economic development of East Asia as well as world economic order. In particular, it should reflect the past sincerely for peace in East Asia and local stability. Korea should intervene in world economic order, political stability and peace in East Asia as one of the economic leaders though it is divided into North Korea and South Korea. Southeast Asia should cooperate for economic markets and exchanges as it is a member of comprehensive Chinese economic zone. In particular, it should cooperate to improve the quality of ASEAN, Korea-China·Japan Cooperative Organization, and ARF, which will be the most effective alternative for a future East Asian community.However, in spite of such roles, East Asia has considerable problems in politics, economy, military, diplomacy and culture. To overcome them, they should recognize ideological, cultural and institutional differences among countries and respect each other's systems.