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Miracles of the day before : The great Asian meltdown and the changing world-economy

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  • Miracles of the day before
  • Palat, Raviarvind
  • Seoul National University(Institute for Social Development and Policy Research, Center for Social Sciences)


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Title Miracles of the day before
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Sub Title

The great Asian meltdown and the changing world-economy

Material Type Articles
Author(English)

Palat, Raviarvind

Publisher

[Seoul]:Seoul National University(Institute for Social Development and Policy Research, Center for Social Sciences)

Date 1999-06
Journal Title; Vol./Issue Development and Society:vol. 28(no. 1)
ISBN 1598-8074
Pages 47
Subject Country Asia & Pacific(Asia and Pacific)
South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Administration
Holding Seoul National University

Abstract

Rather than viewing the spectacular collapse of stock and currency markets in East and Southeast Asia as a financial crisis caused by imprudent banking practices and ‘crony capitalism,’ this article argues that the meltdown was caused by overproduction. The first section demonstrates that high levels of corporate debt was necessary for regional firms to become competitive in the most exacting markets. Till the early 1980s, the coordination of investment strategies by elite economic bureaucracies under the aegis of Japanese capital ensured the creation of a regional division of labor. The very success of these strategies, however, rendered the regulatory frameworks progressively anachronistic. In a deregulated environment, the continued pursuit of capturing market shares through debt-led industrialization strategies led to chronic overproduction on a world scale and the crisis manifested itself along Asia’'s Pacific Rim only because it was most rampant there.