trust.docx
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trust.docx
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trust
weseethatitdescribesanethicalworldinwhichpeoplearebornnotwithrightsbutwithadutiestoaseriesofhierarchically-arrangedauthorities,beginningwiththefamilyandextendingallthewayuptothestateandemperor.Inthisworld,thereisnoconceptoftheindividualandindividualrights;dutiesarenotderivedfromrightsastheyareinWesternliberalthought.Whilethereisaconceptofreciprocalobligationbetweenrulerandruled,thereisnoabsolutegroundingofgovernmentresponsibilityineitherthepopularwillorintheneedtorespectandprotectanindividual'ssphereofautonomy.
ApartfromConfucianism,Asia'sreligionsdonotgiveparticularsupporttoWesterndemocraticprinciples.FolkreligionslikeTaoismandShintoareanimistandpantheistic.WesternerssometimesforgettheimportanceofthetranscendentmonotheismoftheJudaeo-Christiantraditiontotheirpoliticalandsociallives.Theideathatthereisaneternalrealmofdivinelawsuperiortoallpositivelawgivestheindividualwithaccesstothathigherlawpotentialgroundsforrevoltagainstallformsofsecularauthority.Itpromotesbothindividualismandtheconceptofuniversalism.TheuniversalismisthegroundnotonlyfortheWesternconceptofhumanrightsthataretransferablefromoneculturetoanother;itisalsothebasisforabstractionintheobservationofnatureandhumanbehaviorthatisatthebasisforboththenaturalandsocialsciences.
Ontheotherhand,thereareanumberofkeyvaluescharacteristicofmanyAsiansocieties,which,whilehavingseparaterootsfromtheirWesterncounterparts,arequitesupportivebothofamoderneconomyandofdemocraticpolitics.(Eveniftheyweresupportiveonlyofeconomicmodernization,theywouldstillbeconducivetodemocracybecauseofthelinkbetweendevelopmentanddemocracy).AsianreligionsandethicalsystemsareremarkablytolerantinawaythatmonotheistictraditionslikeJudaism,Christianity,andIslamhistoricallyhavenotbeen.Confucianism,withitsexamsystemthatopensupprospectsforsocialmobility,canbehighlymeritocratic.Itisahighlyrationalethicalsystemanddoesnothavetheobscurantisttendenciesof,say,orthodoxShiism.TheConfucianemphasisoneducationiswelladaptedtotheneedsofamoderntechnologicaleconomy,andtheConfucianfamilysystemprovidesacertainprotectedsphereofprivatelifethatisrelativelyfreeofstateintrusion.
BEATINGADEADHORSE
SincefewpeopleseemtobeinterestedinmakingthecaseforAsiavaluesasthebasisfordistinctivepoliticaloreconomicinstitutionstoday,criticizingtheconceptmayseemabitlikebeatingadeadhorse.Forthesakeofclarity,however,itisimportanttolayouttheweaknessesoftheoriginalargumentasameansofdistillingfromitthoseelementsthatmightremainvalid.
ThefirstandprobablymostimportantproblemwiththeAsianvaluesconceptwas,asanyonewhohastraveledthroughAsiaknows,thatAsiaisaverydiverseplace,andthatvaluesvaryconsiderablyfromcountrytocountry.6LeeKwanYewsometimessuggestedthatAsianvaluesweretantamounttoConfucianvalues,butthenitisnotclearwhytheyshouldapplytotheMalaypopulationsofMalaysiaorIndonesia.Confucianismis,moreover,interpretedverydifferentlyinJapan,Korea,andChina.MahathirarguedthatAsiansvaluefamilymorethanWesterners.ButkinshiptiesvaryinimportancethroughoutAsia:
theyplayaminimalroleinJapanandaveryimportantoneinsouthernChina.Largelineagesexistinthelatterregion,butnotinnorthernChinaorinotherpartsofNortheastAsia.ItisnotevenpossibletoarguethatAsianfamiliesaremorestablethantheirWesterncounterparts:
duringthefirsthalfofthetwentiethcentury,divorceratesinpeninsularMalayawerewellover50percent;incontrasttomostWesterncountries,theydecreasedwitheconomicmodernizationandcrossedoverWesternratessometimeonlyinthe1970s.7
ThesecondweaknessoftheoriginalAsianvaluesargument,whichissharedbymanyculturalexplanationsofbehavior,liesinthefactthatvaluesalmostneverhaveadirectimpactonbehavior;theymustbemediatedthroughavarietyofinstitutionstomakethemselvesmanifest.AsianculturalvaluesexistedinsomethingliketheirpresentformlongbeforeAsiansocietiesbegantheirperiodsofexplosiveeconomicgrowth.Thecausesforthatgrowtharemuchmorelikelytobefoundintheinstitutionsthatwerecreatedinthemeantime,likestablegovernments,systemsofpropertyrightsandcommerciallaw,aswellasbythemacro-andsometimesmicroeconomicpoliciescarriedoutbythosegovernments.Valuesandculturestillplayimportantrolesinexplainingagivensociety'sabilitytobuildandoperateinstitutionsandpolicies:
weretheUnitedStates,nottomentionBrazilorMexico,totrytocreatetheequivalentofJapan'sMinistryofInternationalTradeandIndustry(MITI)withinitsownborders,Isuspecttheresultwouldbemuchlesssuccessful.Buttojumpimmediatelytothelevelofculturetoexplainoutcomeswithoutlookingatinstitutionsasanintermediatestepisatypicalmistakemadebyproponentsofculturalinterpretations.
Withregardtopoliticalinstitutions,itisnotatallclearthatAsianvalues,howeverinterpreted,constituteanykindofinsuperablebartomoderndemocracy.Thereisacorrelationbetweendemocracyanddevelopment;foravarietyoffunctionreasonswealthiersocietiestendtoexpandpoliticalparticipation.SincetheoriginalelaborationofthecorrelationbyLipsetin19988,ithasbeenanalyzedintensivelyusingdatafromtheThirdWavedemocraciesformedinthe1980-1990period.Withsomeexceptions,thecorrelationcontinuestoholdupratherwell.AdamPrzeworksihasconcludedthatthereisnotasinglehistoricalcaseofareversalofademocracyinacountrythathadreachedalevelof$6000percapitain1992paritypurchasingpowerterms.9
Ifwepresumethatmodernizationcreatesconditionsneithernecessarynorsufficientbutnonethelessveryhelpfultotheestablishmentofstabledemocracy,theburdenofproofthenfallsonthosewhoarguethatAsianvaluesaresoexceptionalastounderminetherelationship.10ButtheempiricalrecordinAsiaisrelativelysupportiveofthedemocracy/developmentcorrelation:
thefirstthreeAsiancountriestoindustrialize,Japan,SouthKorea,andTaiwan,nowhavefunctioningdemocracies.Whiletwoofthehighestpercapitaincomeentities,SingaporeandHongKong,arenotdemocratic,tendstodisconfirmthecorrelation(aswellasthefactthatthePhilippineshasbeenademocracywhileremainingoneoftheregion'spoorercountries),thoughtheseanomaliescanbeexplainedbyotherfactors.
Ifwefocusoneconomicinstitutions,itisclearthatthereweresomethatwereuniquetotheregion,andthatthesewereoneswhichprobablycouldnotbecreatedinotherculturalsettings.Theseincludedtheso-calledJapanesedevelopmentmodelinwhichatechnocraticeliteoverseassectoraltransitionsthroughcontrolovercredit;Japan'ssystemoflifetimeemploymentamonglargecorporationsandtheirkeiretsunetworks;thechaebolinKorea;andthefamily-basednetworksofoverseasChinesebusinessesinsouthernChinaandSoutheastAsia.Whilemanyoftheseinstitutionsareclearlydysfunctionaltoday,itisverydifficulttoknowinretrospectthedegreetowhichtheyeithercontributedtoorconstraineddevelopmentduringAsia'shigh-growthperiod.ThemostbasicexplanationforAsianeconomicdevelopmentliesinconventionalfactorslikeinputsofcapitalandlabor,combinedwithpoliticalstabilityandreasonablygoodgovernment.ButasthereactiontoPaulKrugman'sextremeversionofthisargumentindicates,thisviewisnotentirelysatisfactory.11ManyuniquelyAsianinstitutionsviolatedpreceptsofWesternneo-classicaleconomicsbyinterferingwithmarketmechanisms;evenso,theiroperationcoincidedwithlevelsofeconomicgrowththathadnoprecedentintheprioreconomichistoryoftheWest.Theleastonecansaythisthat
(1)theywerenotasharmfultoeconomicgrowthasmanyWesterneconomistsassertedinpriordecades,butthat
(2)manyhaveclearlybecomeobstaclestogrowthnow.
Takingaccount,then,ofboththediversityofAsianvaluesandtheimportanceofinstitutions,theoriginalAsianvaluesargumentbeginsdecomposingveryquickly.Thestate-centricJapanesedevelopmentmodelwasneverreallyimplementedinSoutheastAsia,manyofwhosesocietiespossessedlessstableandcapablegovernments.There,problemstendedtobemoreonesofunder-institutionalization,suchasinthecaseofThailand,whosefinancialproblemshadmuchtodowithaninadequatesystemofbankingregulation.JapanandKoreaneedtodismantlecertainoftheirstateinstitutionsandde-regulate;ThailandandIndonesianeedtobuildupmanyoftheirstatecapabilitiesandimplementmoremodernregulatorysystems.Ineithercase,thecentralquestionsconcerninstitutionaldesignandnotculture.Thelattermayhaveaneffectinpromotingorconstrainingthepoliticalconditionsforinstitutionalchange,butisotherwisenotrelevantonlyasmediatedthroughinstitutions.
TOWHATEXTENTWEREASIANVALUESRESPONSIBLEFORTHEASIANCRISIS?
JustasexplanationsforAsiangrowthlieintherealmofconventionaleconomicsratherthanculture,sotoodoexplanationsforAsia'scurrentcrisis.Itwouldseemprimafacieimpossibleforaculturalfactor,whichchangesveryslowly,toaccountforarapidandunexpecteddevelopmentlikethelossofforeigncurrencyreservesorthesuddenbuildupofshort-termcredit.
Thereis,however,oneculturalthemethathasrunthroughcurrentanalysesofthecrisis,whichisthetendencyofmanyWeste
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