South Korea and Taiwan’s institutional capacity helped U.S. aid to be used well after 1945, while South Vietnam’s Frenchcolonial legacy hindered development

Many theories have been put forward to explain the economic successes of South Korea and Taiwan in the latter half of the 20th century. In new research, Kevin Gray attributes much of this success to U.S. aid, which, he argues, did not take place on a blank slate. Rather, it built on the already considerable state capacity created by Japan’s colonial bureaucracy. Aid to South Vietnam, on the other hand was far less effective due to the fragile legacy of French colonialism, and the failure of land reform which fuelled the domestic insurgency and led to a greater U.S. focus on military aims compared to development.