ABSTRACT
During the last quarter of 1997, investor confidence around the world was being shaken by crises in the economies of East and Southeast Asia. Troubles had been brewing for months and currency and stock markets finally collapsed in Thailand, the Philippines, Malaysia, Indonesia, South Korea and Taiwan. Hong Kong and Singapore were also on shaky ground, the Japanese economy continues its struggle in the late-1990s; and while Chinese exports continue to boom, it is clear that further reforms to its inefficient state sector are needed. What was so unsettling about these developments was that they happened in a region which for some time had enjoyed rapid, seemingly limitless economic growth in the context of stock markets traditionally regarded as safe havens. How was it that Japanese, South Korean and other Asian “miracle” economies could falter so embarrassingly at this particular juncture? Whether these events prove a mere interruption to a stellar period of Asian economic growth from the mid-1960s, an upward trend bound to resume once economic restructuring is implemented, or whether they represent a serious turning point in the region’s economic history, remains to be seen. But these developments clearly illustrate the Pacific region’s growing influence in the global economy. International connections through trade, capital flows, and multinational companies mean that interruptions in Asian economic growth necessarily engender global repercussions.
