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Wednesday, October 18, 2006



No doubt there is an export effect, although the importance of close proximity is falling each year, noting it is still a factor.

That said, I think it is important to note the "why can't we be rich too like our neighbor" effect which spurs reforms that are amenable to wealth creation. Anyone who thinks that South Korea wasn't engaged in a serious case of copycat with Japan is missing an important part of the puzzle. Similarly most of Latin America engaged in at least some reforms in part because of the undeniable economic success (which some still denied lol) of Pinochet's Chile during a period of time when all the other dictatorships in the area where doing poorly.


"Anyone who thinks that South Korea wasn't engaged in a serious case of copycat with Japan is missing an important part of the puzzle."

And, wasn't China inevitably prompted to change regimes by the comparatively much larger personal wealth of the people of South Korea and Japan.

The exception to the rule is North Korea, which seems impervious to assimilating the same lesson.

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