Manas Chatterji - Economic Globalization in Asia

Economic Globalization in Asia

Edited by

PARTHA GANGOPADHYAY

University of Western Sydney, Australia
and

MANAS CHATTERJI

Binghamton University, New York, USA

First published 2005 by Ashgate Publishing

Published 2016 by Routledge

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Copyright 2005 Partha Gangopadhyay and Manas Chatterji

Partha Gangopadhyay and Manas Chatterji have asserted their right under the Copyright, Designs and Patents Act, 1988, to be identified as editors of this work.

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

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Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

British Library Cataloguing in Publication Data

Gangopadhyay, Partha

Economic globalization in Asia

1.Globalization - Economic aspects - Asia 2.Financial crises - Asia - History - 20th century 3.Asia - Economic conditions -1945- 4.Asia - Economic policy

I.Title II.Chatterji, Manas, 1937-

338.95

Library of Congress Cataloging-in-Publication Data

Economic globalization in Asia / by Partha Gangopadhyay and Manas Chatterji, [editors].

p. cm.

Includes bibliographical references and index.

1. Asia--Economic policy. 2. Asia--Economic conditions. 3. Asia--Foreign economic relations. 4. International trade. 5. International economic integration. 6. Globalization--Economic aspects. I. Chatterji, Manas, 1937- II. Gangopadhyay, Partha.

ISBN 978-0-7546-4114-8

HC412.E21752004

337.5--dc22

2004018314

ISBN 9780754641148 (hbk)

Contents

Matthew F. McHugh

Partha Gangopadhyay and Manas Chatterji

David McHardy Reid and John Walsh

Tsuyoshi Koizumi

Frank L. Bartels and Hafiz Mirza

Lawrence H. Summers

Clive Hamilton

Chander Kant

Chang Woon Nam

Partha Gangopadhyay

Leong H. Liew

Alok Ray

Lilai Xu and (Late) J.C. Liu

Jocelyn Horne

Binh Tran-Nam

Koichi Mera

Bill Lucarelli and Joseph Halevi

Stanislav Menshikov

A. Nekipelov

Jonathan Batten and Samanthala Hettihewa

Amit S. Ray and Saradindu Bhaduri

Frank L. Bartels, Nanyang Technical University, Singapore

Jonathan Batten, Macquarie University, Australia

Saradindu Bhaduri, Jawaharlal Nehru University, India

Manas Chatterji, Binghamton University, USA

Partha Gangopadhyay, University of Western Sydney, Australia

Joseph Halevi, University of Sydney, Australia

Clive Hamilton, The Australia Institute, Australia

Samanthala Hettihewa, University of Western Sydney, Australia

Jocelyn Horne, Macquarie University, Australia

Chander Kant, Seton Hall University, USA

Tsuyoshi Koizumi, Hyogo College, Japan

Leong H. Liew, Griffith University, Australia

(Late) J.C. Liu, Binghamton University, USA

Bill Lucarelli, University of Western Sydney, Australia

Matthew F. McHugh, World Bank, USA

Stanislav Menshikov, Russian Academy of Science, Russia

Koichi Mera, University of Southern California, USA

Hafiz Mirza, University of Bradford, U.K

Chang Woon Nam, Institute for Economic Research, Munich, Germany

A. Nekipelov, Russian Academy of Science, Russia

Alok Ray, Queens University, Canada

Amit S. Ray, Jawaharlal Nehru University, India

David McHardy Reid, Rochester University of Technology, USA

Lawrence H. Summers, Harvard University, USA

Binh Tran-Nam, University of New South Wales, Australia

John Walsh, Curtain University of Technology, Australia

Lilai Xu, La Trobe University, Australia

Matthew F. McHugh

The Asian financial crisis has had a profound effect not only on the nations of that region, large and small, but on the global marketplace more generally. It is important that we understand the causes of that crisis, as well as the lessons to be learned from our experience in coping with it. Most of the papers in this diverse collection deal with recent economic developments in Asia, including their implications for institutional reform, trade, the development of the private sector, and a variety of related topics. In some cases, the scope of these papers extends beyond economics, touching upon political, social and cultural changes.

Whether the developments considered are economic, political, social, or a combination thereof, they are all occurring in the context of globalization and often at a rapid pace. This poses challenges, as well as opportunities, for policymakers and others in the mix.

As Thomas Friedman observed in his best-selling book, The Lexus and the Olive Tree, globalization is the international system that replaced the Cold War system. Protesters in Seattle and elsewhere may decry the system, but it is surely with us and is likely to be for some time. It is driven by powerful technologies that are integrating our societies more each day, and by the aspirations of people for a better life who see no alternative to plugging into this system. Like it or not, in economic terms, the winners in todays world will be those who understand globalization and accommodate themselves to it.

However, accommodation can be difficult, even painful. Governments must adopt free market policies that often run counter to established interests protectionism must give way to open trade, state run enterprises need to be privatized, corruption and crony capitalism must be abandoned, banking, legal and regulatory systems need to be reformed. Government and business must be more transparent. In short, to integrate into the global marketplace, nations must put institutions, programs and policies in place that will attract and sustain private investors; the ultimate engine of growth in any society.

Globalization generates some understandable concerns. While it promotes economic growth, the benefits of this growth are not always equitable. The most vulnerable in society can be left behind. Moreover, beyond the economic consequences, globalization is often seen as bringing with it foreign values which break down traditional cultures. Muslim countries, for example, often associate globalization with Western values with which they are not particularly comfortable. These concerns need to be addressed if there is to be economic, social and political stability. There is no obvious alternative to globalization today, and societies do need to act on this reality. Those that lack the experience of financial capacity to adapt on their own deserve the help of the more fortunate, since we all have an interest in promoting growth and stability. At the same time, the stresses and inequities that accompany such rapid change need to be remedied. Many developing countries cannot yet cope with globalization unaided. The international community, through institutions like the IMF, the World Bank, and others, must help. The recent experience in Asia, and its impact elsewhere, has been instructive. It was both a crisis and an opportunity. The international community did respond and most countries, with appropriate assistance, have adopted policies, which provide hope for the future. The papers presented here reflect this experience and contribute to our knowledge of a rapidly changing, but compelling world.