To end both mass poverty and political uncertainty, the newly liberated…

To end both mass poverty and political uncertainty, the newly liberated nations required economic development. Rapid economic growth was required not only to raise living standards, but also to sustain a spirit of national solidarity. Such was the broadly accepted consensus, which, however, admitted of variations in policies adopted or rejected by post-colonial governments. Where communists were in charge, there was a push to nationalise industries and eliminate private sector production units. In agriculture, family farms were discouraged. Yet even in non-communist countries the state assumed a pre-dominant role in industrial production. Yet agriculture remained in private hands. Some countries left feudal systems of landholding intact; others gave ownership rights to tenants or sharecroppers. There were also variations on the question of international trade and capital flows. Some countries rigorously protected their own industries from external competition, erecting high tariff barriers. Others adopted a more flexible trade regime, selectively permitting foreign goods and capital into their territory. An important factor in the history of modern Asian nations is that of foreign policy. Countries governed by communist parties were allied with the Soviet Union, while other Asian countries allied with the United States. The latter were attracted by Western financial and technical aid. Yet other countries chose to strike out on a path of non-alignment, choosing not to closely identify with either the Russians or the Americans.

In the case of foreign policy, Asian nations were