ABSTRACT

In many ways, the record of the Southeast Asian nations is a classical example of the “catching up” type of development. First of all, as distinct from Japan which had already been a regional economic superpower before World War II, none of those nations had any industrial experience. Second, many of them had, for quite some time, been, under the influence of communist ideology or had developed “along socialist lines.” Third, as they embarked on industrialization, they set themselves extremely ambitious aims such as going beyond the confines of the Third World and joining the world’s community of industrialized countries. Fourth, in no part of the world had the process of industrialization ever received such a massive support in the shape of foreign investment and credit injections. And finally, never before had the market economy experienced a systemic crisis of industrial production like that of 1997 the aftermaths of which are felt to this day.