uneven land possession in Latin American countries, society is relatively even with the majority of its components are independent farmers in Southeast Asian countries. In Latin American countries, therefore, priority has been given to interests of urban inhabitants, and the government policy is focused on over-evaluation of their currencies. As a result, benefits from the downward currency revaluation carried out to increase exports have gone to the establishment including the class of landowners.

## Myint and Lockwood

In the background of such arguments as mentioned above are views that differences in landowners' rent-seeking activities gave great influence on government policies, and became an deterrent to economic growth. H. Myint has paid more attention to basic economic structure than to government policies. According to Myint, the greatest problem of developing countries is not distortions caused by their policies but their sectionalized structure. In a country where all markets including the financial market and the labor market are sectionalized, the economy itself could not adapt to changes in circumstances. It is necessary, therefore, to modify the economic system itself into the one adaptable to external changes.

In his voluminous book titled “The Economic Development of Japan,” William W. Lockwood said that Japan’s experience could be useful lessons to developing nations. Out of various aspects of Japan treated in his book, he has particularly emphasized that the successive governments of Japan endeavored to unify the nation and paved the way for the modernization of legislative, administrative and financial systems, and that the Japanese people joined forces for industrial development. According to the book, the Japanese government established an efficient educational system, and admitted freedom of ownership and selection of occupation and residence. In Japan, the government has been often criticized for its compulsive attitude in association with the suppression of dissent by the military governments before and during World War II, but the most important point is the will of the Japanese people, he said.

The word of “the will for industrial development” may be replaced by a more ordinary term of “entrepreneurship.” Economics premises that production elements such as capital and labor move freely in quest for profits. No matter how a country abounds in natural resources, it could not achieve economic development without capital and labor. Presumably we may discuss factors of the economic development of Southeast Asian countries from the viewpoints of H. Myint and W.W. Lockwood.

### 3. Factors Facilitating Economic Development

## I ntroduction of foreign capital and entrepreneurship

Why have Southeast Asian countries succeeded in following the course that NIES had run, while many in other regions have failed to follow suit? Before answering this question, it is necessary to know whether there were capital, labor, and market, whether there were policies for preparing them, and whether the political situation was stable in these countries. In other words, it is necessary to examine country risks of these countries.

Capitalists and capital accumulation are prerequisites of industrialization. It begins with investment of abundant capital in the industrial sector by capitalists. Of course, foreign