Currency speculator George Soros tried to crush 12 Asian tigers simultaneously in 1997

Episode 47: Rise of the Asian Tigers

Foundations of Eastern Civilization

Dr Craig Benjamin (2013)

Film Review

China

In 1972, four years before Mao’s death, Nixon sought to capitalize on the split between the Soviets and Chinese[1] by re-opening relations with China for the first time in 23 years.

A five-year power struggle following Mao’s death in 1976 meant his successor Deng Xiaping only assumed paramount power in 1981. It fell to Deng to gradually transform China into a quasi-capitalist state, through what he referred to as the Four Modernizations (agriculture, industry, science and technology and defense).

Deng reformed government-run collective agriculture by allocating land to groups of 30-40 families. Any surplus produced could be sold on the open market. Because Mao’s Cultural Revolution had virtually destroyed China’s professional and managerial class, Deng sent tens of thousands of students overseas for professional training. He also opened China to foreign investment, leading to a surge in development in mainland coastal areas. When the British returned Hong Kong to China in 1997, Deng enabled it to continue as a major economic hub by granting it “special status.” [2]

In December 2001 after China joined the WTO, massive trade expansion produced 10% annual growth rates for nearly two decades. By 2011, they would become the second largest economy in the world. I was disappointed in Benjamin’s failure to mention China’s unique approach to money creation, which is a far bigger factor in their massive economic growth. Unlike Western countries, where 97% of money and credit is created by private banks, in China money creation is managed by China’s central bank as a public utility. [3]

Benjamin does mention that as of 2013 China dominates the world in terms of technological development, including clean energy (with the double the US investment in clean energy).

South Korea

According to Benjamin, South Korea experienced similar dramatic economic growth as China. However what he fails to mention is the role of massive US military and economic aid during US military occupation (which didn’t end until 1994 – see link).

Japan

Benjamin also marvels at Japan’s economic miracle. Here again, thanks to $2 billion in US economic aid, By 1949, the Japanese economy had returned to pre-war levels by 1949. He fails to mention the CIA installed war criminals to run Japan’s postwar government and secretly funded single party rule (by the Liberal Democratic Party) from 1949-63. See The Long US War Against the Third World

Benjamin does credit Japan’s extremely low wages, in part, for its economic success. However he fails to mention the role of its dictatorial government in violent suppressing unions and wages.

He does acknowledge that US military occupation of Japan continues (there are still 23 US bases there, despite growing popular opposition) despite US occupation “officially” ending in 1952. As a condition of surrender, Japan agreed to abolish its armed forces, as well as a “mutual defense treaty,” whereby the US would provide its military defense.

He also mentions how Japan “spiraled into recession” in the 1990s (from which it never recovered) though it continues to be the world’s largest economy. He blames Japan’s recession on overpopulation and difficulty accessing key resources. In my view, a more logical explanation is that China could offer cheaper labor to Western factories seeking to move their factories to low wage Asian economies..

Other Asian Tigers

Benjamin mentions other Asian economies who became economic “tigers,” although he fails to mention the role of low wages in luring Western manufacturers to shut down their factories and move to Asia. Or the role of authoritarian anti-labor policies in keeping wages low.

• Indonesia [4]
• Thailand [4]
• Taiwan [4]
• Malaysia
• Singapore

My biggest disappointment with this lecture Benajamin’s failure to mention currency speculator George Soros’ attack on the currencies of South Korea, Indonesia, Thailand, Hong Kong (which was still a British colony), Laos, Malaysia, the Philippines, China, Singapore, Taiwan, Brunei and Vietnam. This move virtually collapsed the economies of South Korea, Indonesia, and Thailand. See https://www.winton.com/longer-view/east-asian-crisis-1997

[1] And distract from negative Watergate coverage (Benjamin doesn’t mention this).

[2] Hong Kong is governed by its own provincial council (selected by the mainland government).

[3] In Western countries, the main purpose of money creation is to increase profits. In China money is created to be spent into the economy for industrial and other social and economic needs. See https://mronline.org/2022/07/02/economist-michael-hudson-on-inflation-and-fed-plan-to-cut-wages/

[4] Indicates countries historically run by US puppet dictators – see The Long US War Against the Third World

Film can be be viewed free with a library card on Kanopy.

https://www.kanopy.com/en/pukeariki/watch/video/5808608/5808703