Additionally, all four countries shed colonial influence in the twentieth century and the colonial era was effective over at the end of World War II. All four countries have governments that are deeply involved in economic development and which have undertaken strong industrial and trade policies, encouraged domestic savings, fostered agricultural production improvements through land reform, limited market entry of foreign products that might compete with domestic goods, maintained low wages, and exercised what Bradshaw and Wallace (98) call ôheavy-handed tactics to keep order at home.ö

All of these countries are dramatically influenced by the Confucian heritage that has shaped their cultures. Confucianism has promoted three factors that shape development in a typically Asian manner: 1) Confucianism instills respect for elders and authority figures and helps to maintain the hierarchal business organizations that are found in these countries; 2) Confucianism emphasizes the group or the collective over the individual and bolsters loyalty to the firm and the nation; and 3) Confucianism leads to self-discipline and fosters an orderliness in society that nurtures e

Modernization theorists point to Asia as basic confirmation of the argument that capitalist economies prevail, technological innovation and education are drivers of economic development, and Western foreign and/or capital investment contribute to economic growth (Bradshaw and Wallace, 115). While modernization theory does not explain all development in the region, it does demonstrate that economic dynamism produces greater democracy. However, Asian countries are not dominated by Western religions, values, and cultures. Diverse political systems and structures have fostered similar economic policies and the four dragons have not sat idly by and adopted the role of a victim in the global economy.

Further, the dragons have a high level of ethnic homogeneity which reduces violent ethnic conflicts and promotes solidarity inside and outside the workplace. The Asian companies themselves in these countries promote loyalty, productivity, and teamwork. Labor unions are rare, pay differentials within an organizational hierarchy are relatively small, and companies enjoy high levels of worker morale. Bradshaw and Wallace (100) state that these reasons, which represent a combination of exter