Economic Growth: Politics or Policies Matter?

Today's rapidly growing economies are classified as Newly Industrializing Countries or NICs and most of the NICs are located in Asia. Despite the current economic crisis, which remains as a mystery, NICs experienced a rapid economic growth over the last 40 years. Economic growth refers to an increase in the productive capacity of an economy.
Japan was the first country to experience a rapid economic growth in Asia. Its economy continued to expand rapidly from the mid-1950s through the 1960s. The annual growth rate averaged close to 11% in real terms for the decade of the 1960s. This compa…