ABSTRACT
The destabilization and potential worldwide recession caused by distortions in the United States (US) global role must be avoided if internal development of the Asia-Pacific region is to proceed in an orderly fashion. Many economic analysts have expressed hope that the experience of the newly industrializing countries (NIC) in Asia is indicative of the future. The Japanese postwar economic miracle and the more economic development of the NICs are impressive. The conventional view of the economic performance of Japan and the NICs argues that these countries adopted "right policies". The outsourcing of Japanese production to the NICs and other Asian nations depends on US markets as much as on the revaluation of the yen and rising Japanese production costs. The diffusion of new technology and net capital formation has been an essential part of the development experience of the NICs.
