Making “Economic Miracles”: Explaining Extraordinary National Economic Achievement

Abstract

This paper argues that the critical dynamic in creating the perception of an “economic miracle” is to target collective learning processes upon applied economic objectives that coordinate internal factors with external opportunities in order to position a nation to catch waves of global economic growth. Using annual GDP growth statistics over the past 50 years and the percent of GDP that goes for investment, “economic miracle” countries are identified, then characterized. Such countries have experienced one, two or three “waves” of extraordinary economic performance. External and internal factors which accompany economic miracles are identified, and related. “Post-authoritarian stability” is one internal condition often found in economic miracle countries. Key steps that need to be taken in order to engineer an “economic miracle” based on what past miracles have had in common are summarized. But these growth recipes are offset with illustrations of potential opportunity costs in terms of social and ecological responsibility and sustainable development.