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Miracle to Meltdown in Asia: Business, Government and Society

Online ISBN:
9780191685125
Print ISBN:
9780198295525
Publisher:
Oxford University Press
Book

Miracle to Meltdown in Asia: Business, Government and Society

Norman Flynn
Norman Flynn

Research Fellow

London School of Economics
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Published online:
3 October 2011
Published in print:
14 October 1999
Online ISBN:
9780191685125
Print ISBN:
9780198295525
Publisher:
Oxford University Press

Abstract

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 organisations 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it shows that the period of the ‘developmental state’ in Japan and Korea has come to an end, but that it has not yet been replaced by a liberal market.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 ‘globalisation’ are strong, but they are confronted with political and economic cultures that are not rooted in liberal market ethics.

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