capital. Indeed, they were mere commercial capitalists operating family companies at the outset, but they have dramatically changed themselves. They expanded business and called in capable men, and gave them chances for promotion, treating them as technocrats. In addition, Thai capitalists have given their children modern education and let them study in industrialized countries. These efforts to foster human resources and give young people chances to display their ability have played an important role in the modernization of business management in Thailand. It is difficult to explain such phenomena as the acquisition of an American firm by a Thai conglomerate or the launching of a Thai company into the heavy industry with the traditional argument on overseas Chinese in Thailand. No doubt Thai capitalists have entrepreneurship.

In Malaysia, entrepreneurship is clearly seen in the policy of nationalizing British-capital companies. Usually Hong Kong capital is invited to participate in a British company at first, and then Malaysian capital is called in. At the time when Malaysian shareholders gradually gain their influence, a state-owned company acquires the British firm by take-over bid. Malaysia has successfully nationalized British companies without taking such high-handed measures as confiscation. This contrasts strikingly with the hurried nationalization of foreign plantations in Indonesia, which resulted in a decline in productivity.

## Morale of workers and farmers

Capital accumulation and capitalists are prerequisites of industrialization. However, even if a developing country succeeds in inducing foreign capital, it is indispensable for an industry to gather workers, particularly “eligible” workers, in order to establish itself and increase its production capacity. Unemployment does not necessarily mean the availability of labor force necessary for industrialization. The availability of skilled workers is a common characteristic of Asian NIEs. They are well-educated and have will to work. The existence of motivated workers is one of the factors attracting foreign capital into these countries.

In addition, attention should be focused on the fact that even farmers have entrepreneurship in these countries, though it is often neglected. Theodore W. Schultz has refuted a conventional view that sluggish growth of agricultural productivity is ascribable to conservative attitude of farmers, saying “even farmers respond rationally to an incentive of profit.” His argument is proved by the behavior of Thai farmers. They have shifted emphasis from rice cultivation to dry field farming. Nowadays various farm products such as maize and cassava are being exported from Thailand, which once exported only rice and teak. The fact that Indonesia has successfully achieved self-sufficiency of food can be attributable to farmers’ morale referred to by T.W. Schultz.

Some people may refer to Confucianism with regard to dramatic growth in Asian NIEs. However, Confucianism is not necessarily the secret of the success of Asian NIEs, because it sometimes becomes deterrents to industrialization for its doctrines, for instance, respect for elders and tradition. The point is whether workers are motivated by aspiration or entrepreneurship. Such practices as on-the-job training (OJT), quality control (QC) and total quality control (TQC) will never succeed without will of workers to work. Diversified agricultural production premises farmers' aspiration for profit. Because it is workers that must learn and get skilled in imported technology and use it in the factory where they are