Growth with Equity: A Test of Olson's Theory for the Asian Pacific-Rim Countries

Abstract

In the past quarter of century, the countries located along the Asian side of the Pacific Basin have achieved impressive economic growth and socioeconomic equity. Conventional economic theory and dependencia perspectives are poorly equipped to account for the simultaneous achievement of these desiderata. In this analysis, Mancur Olson's theory of distributional coalitions is employed, with considerable success, in analyzing this phenomenon. It is hypothesized that countries that have undergone more severe forms of civil war and/or foreign occupation have weaker distributional coalitions, and hence are more likely to be able to achieve rapid economic growth and equitable distribution of income and social welfare. The hypothesized relationships are generally supported by the experience of the Asian Pacific-rim countries.