ABSTRACT
This chapter addresses some economic issues that remain troublesome and that might bode ill for Asia and for the global economy's future. The Asian trauma has generally been seen rather strictly as an issue of international finance. In author's view, Paul Krugman correctly emphasizes that poor investments ultimately led to heavy debt portfolios in Asia. Keynes himself established an intellectual foundation for national investment planning, which produced the problematic climate from which the Asian crisis blossomed. Economic planning established the principles of national development policy as well for principal sectors as for the overall economy. The reversal of investment funds represented the tip of the iceberg seen and understood by the world as the Asian crisis. The financial crisis was a function of capital flight, which in turn was the product of poor investments and the failure of national economies to provide effective corporate governance.
