The Political Economy Of The New Asian Industrialism
The authors of this volume feel the need of a theoretical explanation for the remarkable economic performance of the newly industrializing countries of East Asia. They emerge from their inquiries-or at least the editor does-with the view that governments acquire a "strategic capability" to carry out effective development policies through a combination of domestic authoritarianism, good favorable links with the external world and efficient economic institutions. He hedges on Hong Kong.
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US hostility against Japan stems not from any specific arguments about the trade deficit, or direct investment, or burden-sharing, but from an national loss of self-confidence about economic competitiveness.
Mahathir Mohamad and others love to blame buccaneering hedge funds for sparking Asia's recent financial crisis, but they have the wrong suspects. The "hot money" that rushed in and out of emerging markets came from irresponsible banks, not hedge funds. In fact, hedge funds are minor players in international finance. Rather than worsening financial turbulence, they might even help curb it.
Develops the notion of a new 'triangular' diplomacy involving the post-Cold War economic superpowers -- USA, FRG and Japan -- and explores the diplomatic adjustments which the USA should be prepared to make to accommodate its new strategic partners.

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