Miracle to Meltdown in Asia

The crisis in Asia has caused economic hardship and brought an end to the 'economic miracle' of fast economic growth in the region. This book asks whether the 1997/8 crisis marks a break with the past and signals an end to 'Asian' ways of running economies. During the period of rapid growth there were strong connections between governments and business in the region. 'Cronyism', or close connections between family, business, and government, was exposed when the stock markets and currencies dived. Pressure from overseas investors and international organizations has produced reforms in the region. The book examines the social, economic, and political modes of governance in the region. It finds that there is a shifting balance between rule by the market, rule by connections, and rule by force. In the sphere of economic management, it shows that the period of the 'developmental state' in Japan and Korea has come to an end, but that it has not yet been replaced by a liberal market. Elsewhere the close connections between governments and business have been weakened but not yet broken. There are still special 'Asian' characteristics in economic management and in politics. The forces of 'Globalization' are strong, but they are confronted with political and economic cultures that are not rooted in liberal market ethics.Table of ContentINTRODUCTION; 1. LESSONS FROM THE ASIAN CRISIS; What sort of 'miracles'?; How did the 'meltdown' happen?; Why did it happen?; Responses; Lessons; 2. EXPRESSIVE RELATIONSHIPS AND NETWORKS (WITH CHAN HO-MUN); Challenged assumptions; Expressive and instrumental ties; Mixed ties and networks; Implications; 3. THE ECONOMY AND THE STATE; Intervention and the market; The 'developmental state'; 'Good governance'; The development of the debate; Networks and economic development; The end of rule by connections?; 4. THE FINAL VICTORY OF GLOBALIZATION?; Homogenization; The supranational institutions; The global market; Globalization as power struggle; What is left for the state?; Global governance for a global economy?; 5. DEMOCRACY, THE ECONOMY, AND THE CRISIS; Democracy and the crisis; Democracy and the economy; Asian democracy?; 6. THE FAMILY, THE COMPANY, AND THE STATE; Rights and obligations; Politics and culture; The crisis; 7. MANAGING THE NETWORK STATE; Differences among states; Trends before the crisis; The crisis and public management; Convergence; CONCLUSIONS; Economy; Politics; Labour and welfare; Managing the state; After rule by force and rule by connections?; Stability; Global market rules?