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 Columbia University political economy expert, and Dr. Yumiko Shimabukuro delve into the darker side of East Asia’s economic miracle. They reveal alarming social welfare crises, including soaring elder poverty, low wages, and a troubling rise in child abuse. The duo critiques the region's productivist welfare model, pointing out how prioritizing growth has left vulnerable populations at risk. They also discuss affordable housing issues, contrasting the successes in Singapore to the struggles in Hong Kong, shedding light on the human toll behind economic statistics.
The podcast critiques the East Asian economic miracle by highlighting the social-welfare crises obscured by a focus on economic growth.
South Korea faces alarming elderly poverty rates, exacerbated by insufficient pensions, family structure breakdown, and a lack of social policy reforms.
Japan's rising child maltreatment cases reflect cultural stigma and inadequate support systems, underscoring the urgent need for comprehensive welfare policies.
Deep dives
Dissecting East Asian Economic Growth
The podcast delves into the concept of the East Asian economic miracle, critiquing the notion that this rapid growth has universally benefited all citizens. It highlights the disparities created by focusing solely on economic indicators while neglecting the social repercussions of this growth, such as high rates of poverty among vulnerable populations. The authors emphasize that although many East Asian countries have achieved remarkable economic progress, they simultaneously face significant social challenges, particularly in areas like elderly poverty, low wages, and child maltreatment. This balanced view calls for an examination of the actual lived experiences of people in these economies, rather than relying solely on macroeconomic statistics.
The Crisis of Elderly Poverty in South Korea
South Korea's elderly population faces alarming poverty rates, significantly higher than the OECD average, with around 40% living in poverty. Factors contributing to this crisis include insufficient retirement savings, many citizens forced into early retirement, and inadequate government pension systems. The breakdown of traditional family structures has exacerbated the issue, as fewer adult children take responsibility for their aging parents. This situation results in severe consequences for many seniors, including extreme loneliness and rising suicide rates, highlighting the urgent need for effective social policy reforms.
Taiwan's Stagnant Wages Despite High Education
In Taiwan, education levels are high, yet workers, including those with advanced degrees, face stagnant wages and inadequate income growth. This paradox arises from an oversupply of college graduates in a labor market that cannot absorb them, resulting in a diminished education wage premium. Additionally, the offshoring of jobs has created fierce competition with lower-wage countries, further suppressing wage growth. As a consequence, many educated workers find themselves unable to afford basic living costs, leading to dissatisfaction and unrest among the younger population.
Child Maltreatment in Japan
Japan has witnessed a troubling increase in child maltreatment cases, driven by cultural reluctance to intervene in family matters, urban isolation, and underfunded child welfare systems. The stigma surrounding family issues leads to a lack of reporting and inadequate support for affected children and families. Moreover, the education system's focus on academic achievements often neglects essential life skills for parents, contributing to poorer parenting practices. The podcast underscores the need for comprehensive policies to address these growing concerns and improve the welfare of children in Japan.
Housing Affordability Challenges in East Asia
Housing affordability is a significant concern in East Asia, particularly in densely populated areas like Hong Kong, where excessive housing prices have led to severe living conditions for many. In contrast to Hong Kong's struggles, Singapore has successfully implemented policies ensuring affordable housing for its population through government-controlled land and financing systems. The divergence in approach highlights how local governments can either prioritize the welfare of their citizens through effective policy or succumb to pressures from developers and market forces. This comparison underscores the necessity for thoughtful and proactive housing policies to tackle systemic issues facing urban residents.
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.