ABSTRACT
Rapid growth rates, strong economic fundamentals, and stable political and social conditions had marked East Asia as an ‘economic miracle’ up until the financial crisis in July 1997. The term ‘miracle’ is a misnomer-the region’s success over several decades could be explained by a combination of good initial conditions and the right economic policies, including strong savings and investment and openness to trade and foreign investment. The exposure to products and investment from overseas drove domestic deregulation and liberalisation policies that encouraged competitiveness and dynamic comparative advantage.
