Expert Comment - Varieties of capitalism and rethinking the East Asian model of economic growth

The macro-level consequences of this situation are the decreasing of fixed capital investment as a share of GDP and the increasing outflow of capital (in the form of repatriated profits and interest payments) in balance-of-payment figures.2 In other words, the rise of shareholder capitalism, which prioritises distributing profits as dividends to shareholders rather than funding reinvestment, seems. [...] Lee and Shin (2019; table 1) confirm that the LMEs as a group with more than two member economies was only observed in the mid-1980s, and the US joined Canada and the UK to form the LME group only during the late 1980s or the early 1990s. [...] These changes have been signalled by a series of occasions, including the August 2019 ‘Statement on the Purpose of a Corporation’ by the top 181 business leaders in Washington DC in the US, which was immediately followed by the initiatives of the Financial Times under the heading of ‘Capitalism: Time for a reset’. [...] In particular, given the possibility of financial crises that may result from the mismatch between a quick financial recovery versus weak non-financial businesses, owing to the massive release of diverse kinds of emergency loans, subsidies, and the printing of money in some countries as an aftermath of the Covid-19 pandemic outbreak, emerging countries are advised to install a crisis-resilient mac. [...] During the onset of the GFC, hot money suddenly flew out of Korea to go back to the Wall Street because of a liquidity crisis at the heart of capitalism, and thus the Korean Won again suffered a huge and sudden depreciation (Lee et al.