And then, finally and most pertinent to the issues of democracy and development in the Third World includ ing ASEAN, the New International Economic Order as alternative to anachronistic colonialism can accommo- date itself well with the national elites. With the rise of what John H. Kautsky calls "modernizing aristocracy" (Kautsky 1972 66-72), both governmental and non-gov ernmental, the state machineries in most of the Third World have now been transforming themselves from the function of governing into economic and business man- agement, accommodating changes, or "structural adjust- ments" in the World Bank/IMF's terminology, as dictated from outside. In the circumstances, the Third World's seemingly national governments are more often than not bound to look to the external forces for policy guidance in their business transactions, while increasingly turning blind eyes to their own people, particularly those over- whelming majority who cannot quite keep up with the wind of changes. All this helps explain why and how the two-pronged development policy and strategy has come about: that is, liberalism for the exclusive "private sector" (namely, industry, business, and banking) in contrast to authoritarianism towards the rest. It is no wonder that the state machinery has always been a great helping hand in facilita ng cheap and trainable labour and