The Downsizing of Asia

Until very recently it was assumed that the Asian miracle of prodigious economic growth would continue indefinitely. Europe and America it seemed, were being left behind. The recent financial crisis in Asia has now changed all that. Francois Godement argues that the Asian economies have reached a crisis of maturity. The main components of healthy commercial growth remain in place, the damage has been caused by a lack of financial regulation, organization and discipline and now a profound sense of pessimism. He provides a broadranging survey of the region's economies since 1993 and explains the main reasons behind the recent financial crisis. He also examines important factors such as demography, Asian values, crony capitalism, industrial groupings and the wane of political authority. The Asian miracle has not come to an end, but the author makes clear that improved self-regulation and discipline within the financial sector will be crucial if the economies of the region are to weather the uncertainties of the market-place in the future and realize their full potential.