Politics of the Asian Economic Crisis

304 Pages·1999·12.927 MB·English

by  T.J. Pempel

Politics of the
Asian Economic Crisis
A volume in the series
Cornell Studies in Political Economy
Edited by Peter J. Katzenstein
A full list of titles in the series appears at the end of the book.
Politics of the
Asian Economic Crisis
Edited by
T.J.PEMPEL
Cornell University Press
Ithaca and London
Copyright © 1999 by Cornell University
All rights reserved. Except for brief quotations in a review, this book, or parts thereof, must not be
reproduced in any form without permission in writing from the publisher. For information, address
Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850.
First published 1999 by Cornell University Press
First Printing, Cornell Paperbacks, 1999
Printed in the United States of America
Library of Congress Cataloging-in-PublicationData
The politics of the Asian economic crisisTT.J. PempeL
p. cm.
Includes index.
ISBN 0-8014-3722-9. - ISBN 0-8014-8634-3 (pbk.)
1. Financial crises—Asia, 2. Asia—Politics and
government—1 945- I. Hempel, T.J., 1942-
HB3808.P65 1999
332’.095—dc21 99-38107
CIP
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CONTENTS
Contributors vii
Acknowledgments ix
Abbreviations xi
Introduction 1
T. J.PEMPEL
PARTI. INTERNATIONAL AND REGIONAL CONTRIBUTIONS
1. The Asian Crisis, Democracy, and the End of “Late” Development 17
Bruce Cumings
2. Asian Business Networks in Transition: or, What Alan Greenspan
Does Not Know about the Asian Business Crisis 45
Gary Hamilton
3. Regional Ups, Regional Downs 62
T. J. Pempel
4. The Determinant of Financial Crisis in Asia 79
Jeffrey A. Winters
PART II. NATIONAL RESPONSES
5. Free Market Fancies: Hong Kong, Singapore, and the Asian
Financial Crisis 101
Linda Y. C. Lim
6. The State, Democracy, and the Reform of the Corporate Sector in Korea 116
Meredith Woo-Cumings
v
vi Contents
7. Political Institutions and the Economic Crisis in Thailand and Indonesia 143
Andrew MacIntyre
8. Neither Dynamo nor Domino: Reforms and Crises in the Philippine
Political Economy 163
Paul Hutchcroft
9.S urviving the East Asian Financial Storm: The Political Foundation
of Taiwan’s Economic Resilience 184
Yun-han Chu
10. China: Domestic Restructuring and a New. Role in Asia 203
Barry Naughton
Conclusion 224
T. J. Pempel
Notes 239
References 253
Index 269
CONTRIBUTORS
Yun-han Chu is professor of political science at National Taiwan University.
Bruce Cumings' is Norman and Edna Freehling professor of international history
and East Asian political economy at the University of Chicago.
Gary Hamilton is professor of sociology at the University of Washington.
Paul Hutchcroft is assistant professor of international business and director of the
Southeast Asia Business Program in the School of Business Administration at
the University of Michigan, Ann Arbor.
Linda Y. C. Lim is associate professor of international business and director of the
Southeast Asia Business Program in the School of Business Administration at
the University of Michigan, Ann Arbor.
Andrew MacIntyre is associate professor of Pacific International Affairs in the
Graduate School of International Relations and Pacific Studies at the University
of California, San Diego.
Barry Naughton is Sokwanlok professor of Chinese international affairs in the
Graduate School of International Relations and Pacific Studies at the University
of California, San Diego.
T. J. Pempel is Boeing professor of international studies at the University of
Washington.
Jeffrey A. Winters is associate professor of political science at Northwestern
University.
Meredith Woo-Cumings is associate professor of political science and director of
the Roundtable on Political Economy at Northwestern University.
vii

ACKNOWLEDGMENTS
JLhe idea for this book was born in a conference held on October 30
and 31 and November 1, 1998, in Seattle, at the Jackson School of International
Studies, University of Washington. The conference received financial support
from the Jackson Foundation; for this, the editor and authors are most grateful.
Jere Bachrach, director of the Jackson School of International Studies, was also
very helpful in the planning and implementation of the conference. Mary Alice
Pickert provided valuable research help to me as organizer and editor.
In addition to the authors whose work is presented here, David Asher, Alasdair
Bowie, and Susan Whiting delivered papers to be published in other forums.
Benjamin J. Cohen and Donald Emmerson attended as commentators and made
invaluable suggestions during the meetings and in subsequent reworkings of vari-
ous chapters. I thank all five scholars for their contributions. As editor, I also
express my thanks to the individual contributors; they responded with a surpris-
ingly generous mixture of cooperation, cheer, and speed that made the project far
more pleasurable than is usually the case with such collective ventures.
Neither the conference nor the subsequent editing would have been as smooth
without the fluid administrative and editorial support of Martha Walsh. Staff at
Cornell University Press, and most particularly Roger Haydon, were exceptionally
valuable supporters of this project from its inception. I thank them also for their
expeditiousness.