Introduction: The Development Model in Crisis
The Newly Industrializing Economies (NIEs) of East Asia, including Taiwan, South
Korea, Hong Kong and Singapore, have presented their brand of economic
development as a paragon for other developing economies. These so-called
“developmental states” had sustained impressive growth and survived external
economic shocks until the onset of the 1997-98 Asian financial crisis. However, the
financial storm blew the lid off the structural weakness of South Korea and ASEAN
countries. Japan’s sluggish reactions to its financial sector woes also discredited the
economic governance capacity of the East Asian developmental state.