The Politics of Economic Crisis in East Asia: Some Longer Term Implications

CSGR Working Paper No. 02/98

23 Pages Posted: 23 Jun 1999

See all articles by Richard Higgott

Richard Higgott

University of Warwick - Centre for the Study of Globalisation and Regionalisation

Date Written: March 1998

Abstract

The currency and market turmoils in East Asia since summer of 1997 are every bit as much political crises as they are economic ones. Indeed, the political manifestations of these events may linger long after the necessary economic reforms have been introduced to return at least a semblance of economic normalcy to the region. This paper assess some of the longer term political implications. It does so through "Asian tinted lenses" rather than Anglo American ones and offers an alternative reading of the East Asian economic crisis to that which exists in the mainstream of western policy analysis. While accepting that particularist explanations apply on a country by country basis, the paper outlines: (i) those aspects of the crisis that appear common to those countries affected to-date; (ii) the importance of the silent but fundamental role of Japan as a factor in the crisis; and (iii) notwithstanding the real/material explanations of the crisis, it argues that the crisis is in large part an ideological one reflecting a western conceptual inability to deal with the Asian model of development's reluctance to converge to an Anglo-American form of capitalism. While the policy remedies proffered by the IMF are accepted in Asia in the short run, they may well not be appreciated in the long run, and a major implication of this interaction may well be an enhancement of the prospect of the continued development of an "East Asian" as opposed to "Asia Pacific" understanding of region. Some evidence of regional social learning from the crisis that may well consolidate the trend towards enhanced economic policy coordination that already exists. This could exacerbate tensions between global and regional interests and severely test the "APEC consensus" on a commitment to neo-liberalism in the early stages of the twenty-first century.

JEL Classification: F36, F42

Suggested Citation

Higgott, Richard, The Politics of Economic Crisis in East Asia: Some Longer Term Implications (March 1998). CSGR Working Paper No. 02/98, Available at SSRN: https://ssrn.com/abstract=146971 or http://dx.doi.org/10.2139/ssrn.146971

Richard Higgott (Contact Author)

University of Warwick - Centre for the Study of Globalisation and Regionalisation ( email )

Coventry CV4 7AL, CV4 7AL
United Kingdom

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