ABSTRACT
There is no pretension to give a comprehensive and satisfying treatment of the proposed subject in one paper. The financial crisis and economic recession sweeping across Asia since July 1997 have compounded the political economy and social dimensions of ethnic relations. The situation is more acute in countries where gaps in income disparities and racial assimilation or integration remain, broadly interpreted as the unfinished agenda of the overseas Chinese. As the extant literature (Mackie 1992; Low 1995, 1997a; Suryadinata 1997; Pan 1998) provides the general historical background and insights into specific aspects of the overseas Chinese, this chapter focuses on the impact and ramifications of the Asian financial crisis. The section on “cultural dimensions in the Asian financial crisis” throws light on some factors pertaining to either Asian or Chinese values and practices. While acknowledging that socialization and politicization can engender racial integration, this chapter offers a thesis that economics can be as powerful given the hierarchy in Maslow’s needs. It offers a practical policy tool to stabilize the environment to make racial integration and finishing the agenda more conducive. In turn, a virtuous circle is generated as racial, social and political stability propels the economy further.
