THE AFTERMATH OF THE ASIAN ECONOMIC CRISIS : INVESTMENT, TRADE AND FINANCIAL LIBERALISATION AND GLOBALISATION IN EAST ASIAN ECONOMIES

Abstract

The onset of the Asian economic crisis has changed the way businesses are conducted, how resources are allocated, and the economic and political governance in countries. More importantly, it has changed the views of the East Asian governments towards economic globalisation i.e. trade, investment and financial liberalisation. This paper has been developed with the primary purpose of analysing the reactions of the East Asian governments, in particular Korea, Malaysia and Thailand towards economic globalisation in the aftermath of the crisis. In the process, the study also focuses on policies for a sustainable recovery. It is designed to be a snapshot of where the economies of Korea, Malaysia and Thailand stand, a progress report of the policies and changes implemented by their governments, a discussion of the obstacles to and policies needed in establishing a firm economic recovery, and an analysis of the importance and future contributions of economic globalisation to East Asia's goal of recapturing its lost growth of the last three decades. In exploring the potential role of economic globalisation in the aftermath of the Asian economic crisis, it is hoped that the findings of this paper will make a small contribution to the continuing discussion on the development of East Asia in this new millennium.