Arvid J. Lukauskas and Yumiko Shimabukuro, "Misery Beneath the Miracle in East Asia" (Cornell UP, 2024)
Feb 7, 2025
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Dr. Arvid J. Lukauskas, a political economy expert at Columbia University, and Dr. Yumiko Shimabukuro expose the overlooked social tragedies in East Asia's economic landscape. They dive into pressing issues like elderly poverty, emphasizing a shocking 40% poverty rate among seniors in South Korea. The guests challenge conventional success narratives by discussing inadequate labor policies and low wages, while shedding light on alarming child abuse rates and housing crises. Their multidisciplinary approach advocates for a deeper understanding of social welfare amidst economic growth.
The podcast reveals significant social issues, such as elder poverty and child maltreatment, persisting beneath East Asia's economic success stories.
Dr. Lukauskas and Dr. Shimabukuro challenge the notion that economic growth equates to improved living standards, highlighting persistent socioeconomic challenges.
The discussion on housing policies contrasts Hong Kong's crisis with Singapore's successful strategies, providing valuable lessons for densely populated urban areas.
Deep dives
The Cost of East Asian Economic Growth
The podcast explores the hidden costs associated with the so-called East Asian economic miracle, emphasizing that impressive economic development in countries like Japan, South Korea, and China has not translated into equitable social welfare. Authors Dr. Arvid Lukauskas and Dr. Yumi Shimaburuko argue that while these nations achieved high income levels, significant social issues persist, including rising elder poverty and inadequate support for low-income workers. They challenge the notion that economic growth automatically leads to improved living conditions, suggesting that unaddressed socioeconomic challenges remain prevalent beneath the surface. The discussion highlights the troubling disconnect between growth narratives and the everyday experiences of marginalized groups in these societies.
A Closer Look at Elderly Poverty
The issue of elderly poverty, particularly in South Korea, is alarming, with rates significantly higher than the OECD average. Nearly 40% of seniors live in poverty, with many facing dire circumstances such as homelessness and economic despair leading to increased suicide rates among this demographic. Factors contributing to this crisis include low retirement savings due to early retirements and a cultural shift away from filial piety, leading to reduced support from adult children. This situation demands attention, as economic growth has not alleviated the hardships faced by the older generation who contributed to the nation’s success.
Stagnant Wages Among Educated Workers in Taiwan
The podcast discusses the surprising stagnation of wages for highly educated workers in Taiwan, despite the country experiencing robust economic growth. The education premium for graduates has drastically diminished, reflecting an oversaturated job market due to an influx of tertiary institutions and an abundance of graduates lacking in-demand skills. Additionally, external pressures from offshoring to lower-wage regions have contributed to wage stagnation, creating a brain drain of talent as young professionals seek better opportunities abroad. This phenomenon highlights the disconnect between educational attainment and actual wage growth, raising concerns about the future of the workforce.
Child Maltreatment in Japan
Japan is grappling with a rising incidence of child maltreatment, a troubling trend that contradicts its image as a society that values family and child development. Factors contributing to this issue include a cultural reluctance to intervene in family matters, leading to underreporting and a lack of support for affected children. Additionally, urbanization has weakened community ties that traditionally provided familial support, while a chronically underfunded welfare system has resulted in inadequate resources for addressing child welfare. This multifaceted crisis emphasizes the need for comprehensive social policies that extend beyond economic productivity.
Housing Challenges in Hong Kong and Singapore
The podcast highlights the stark contrast between affordable housing policies in Hong Kong and Singapore, revealing critical lessons in tackling housing crises amid geographic limitations. While Hong Kong struggles with extreme housing costs and inadequate public housing, Singapore has implemented successful policies to provide near-universal access to affordable homes. In Hong Kong, skyrocketing property prices and insufficient governmental intervention exacerbate housing insecurity, revealing the influence of political and economic forces over social needs. Singapore's proactive measures in land use and financing stand in stark contrast, offering a model for other densely populated cities facing similar challenges.
Misery beneath the Miracle in East Asia (Cornell University Press, 2024) challenges prevailing views of the East Asian economic miracle. Existing scholarship has overlooked the severity, persistence, and harmful consequences of the social-welfare crises affecting the region. Dr. Arvid J. Lukauskas and Dr. Yumiko Shimabukuro fill this gap and put a major asterisk on East Asia's economic record.
Combining big-picture analysis, abundant data, a dynamic interdisciplinary framework, and powerful human stories, they shed light on the social ills that governments have failed to address adequately, including low wages, child abuse, elderly poverty, and substandard housing. One of the major forces behind the multidimensional welfare crises is the region's productivist welfare strategy, which prioritizes economic growth while abandoning a robust social safety net, leaving the most vulnerable segments of society largely unprotected.
Misery beneath the Miracle in East Asia brings the region into debates over the dangers of seeking growth at all costs that are currently embroiling the United States and other advanced industrialized countries.
This interview was conducted by Dr. Miranda Melcher whose new book focuses on post-conflict military integration, understanding treaty negotiation and implementation in civil war contexts, with qualitative analysis of the Angolan and Mozambican civil wars.