Abstract: This book examines East Asia’s economic development and integration following the Asian crisis of 1997-1998. The book is divided into six parts. Part 1 describes the development experiences of East Asia’s emerging economies, their characteristics and accomplishments, and then provides an overview of some of the critical failures of the East Asian development model. Part 2 examines the causes and consequences of the Asian crisis, together with a reassessment of the IMF reform program. Part 3 covers the topics of corporate and institutional sector reform, the role of government, and the need for improved social welfare and industrial relations policies. Part 4 assesses the progress in three key areas for the region: reform of the financial sector, the pros and cons of a floating exchange rate regime, and the degree and effect of capital account liberalization. Part 5 reviews the key sectors of trade and financial integration in East Asia, the prospects for continued economic cooperation and integration, and the need for policy coordination with regard to the record foreign currency reserves held by East Asian economies, which resulted in a Transpacific trade imbalance. Part 6 considers the road ahead for East Asia and outlines the characteristics of a new paradigm for development. It is argued that merely adopting liberal economic reform measures will not ensure successful development. This new and evolving development paradigm — distinct from the old system yet not an Anglo-American system — is the key to ensuring success in the region.

Keywords: development paradigm, economic system, East Asia, Asian crisis, Anglo-American, financial crisis, economic liberalization, regional integration, growth model, financial integration