East Asia in 1978: The Great Transformation
The establishment of formal diplomatic relations between the United States and the People's Republic of China on New Year's Day 1979 dramatized an extraordinary year in which East Asia experienced an array of other significant political, social and economic changes. This transformation had been building up over the past decade, gradually sweeping away many of the myths and dogmas on which American policy and practice were predicated for so long. But if history can be said to be marked by decisive moments, 1978 was such a climax. In both its domestic dynamics and attitudes toward the world, the region appears to be entering a fresh phase that will require the formulation of new strategies tailored to new realities.
Stanley Karnow is a syndicated columnist, having been a longtime correspondent in East Asia for several publications. He is the author of Mao and China: From Revolution to Revolution.
The establishment of formal diplomatic relations between the United States and the People's Republic of China on New Year's Day 1979 dramatized an extraordinary year in which East Asia experienced an array of other significant political, social and economic changes. This transformation had been building up over the past decade, gradually sweeping away many of the myths and dogmas on which American policy and practice were predicated for so long. But if history can be said to be marked by decisive moments, 1978 was such a climax. In both its domestic dynamics and attitudes toward the world, the region appears to be entering a fresh phase that will require the formulation of new strategies tailored to new realities.
Five years ago, for example, the economic vitality of the region seemed threatened. It was widely feared that Japan as well as emerging industrial areas such as South Korea, Taiwan, Singapore and Hong Kong would be hard hit by the oil price rise and ensuing global recession, causing them to face serious economic and political dislocations. But they have continued to display remarkable resiliency, and their growth in particular has made East Asia perhaps the most dynamic region in the world economic picture.
Almost four years ago, the collapse of America's client regimes in South Vietnam and Cambodia tested long-standing prophecies that this would throw the rest of Southeast Asia into disarray. Today the "dominoes" that were supposed to topple are now standing more upright than ever, both individually and as members of the Association of Southeast Asian Nations (ASEAN), and their links to the United States are improving even as they seek accommodations with China and with the communist states of Indochina...
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While the past decade of Sino-American relations has been largely constructive, the ten years have not been on a steady incline. Rather, there have been two strong forward spurts, from spring 1971 through May 1973, and from May 1978 through early 1980. The relationship has also endured two periods of some acrimony and erosion: from the fall of 1975 to late 1976 and from mid-1980 to the effort to stabilize the relationship reflected in the communiqué on arms sales to Taiwan that was agreed in August 1982. In addition to the periods of rapid forward movement and retrogression, several periods are best portrayed through metaphors such as "plateaus" or "mixed pictures." Even the best periods were punctuated by moments of doubt and uncertainty, while the phases of deterioration were constrained by a common desire to limit the erosion and to preserve a more positive public facade than the private exchanges warranted.
The West accounts for a disproportionate share of world income because it has already passed through capitalist development. Now that Asia is becoming capitalist, it will return to the center of the world economy, where it was in the early nineteenth century. Current currency crises are only blips on the screen. Asia's miracle transpired not because of shrewd industrial policy or great leaps forward but because countries attracted foreign investment and moved up the development ladder one rung at a time. But ahead lies the challenge, particularly for India and China, of establishing modern governments.
In one sense Russia and China pose the same problems. An international order of trade and cooperation has been established, and the two countries are in the process of joining. But their central governments are weak -- Russia's military is quasi-independent of Moscow, China's factories do not heed Beijing. Humiliation over national decline prompts symbolic defiance of the United States. Ukraine and Taiwan remain dangerous flash points that call for tacit deterrence. Like adolescents, Russia and China are in a transitional stage requiring patience and guidance rather than confrontation.

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