Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.3/81376

Title

Financial crisis and the question of the demise of East Asian miracle: a critical review

Author(s)

Islam, M. Shahidul;  Bashar, Omar Khaled Mohammad Rizwanul

Abstract

By focusing on the East Asian financial crisis this paper argues that the East Asian economic model regaining its strength contrary to the death throes perception that the model has demised. This paper also argues that the crisis simply suggests that it is time to redefine each of the East Asian economies at the underlying principles in order to ensure them keep pace with increasing changes of the border-less world. The study emphasizes on the pace of recovery in the reality of financial crisis in some selected crisis-stricken countries. Extensive literature and macroeconomic data were used to analyze this issue. Studies prove that the model was and is still one of the best economic models to catch the opportunities of globalization though it shows some deficiencies in facing such challenges. East Asian model of economic development was successful in its first stage catch-up; but to start the second stage catch- up, policy makers of the region need to redefine the model in the reality of a new era emphasizing a balanced role of market and state. So the real challenge for policy makers of this region is not in duplicating the Western model (based on Washington Consensus), but in reforming the existing system to make it more flexible and adjustable to face the challenges of globalization.

Publication type

Journal article

Source

AIUB Journal of Business and Economics, Vol. 3, no. 1 (Jan 2004), pp. 115-130

Publication year

2004

Keyword(s)

Economic development;  East Asian economic model;  Financial crisis;  Globalization

Publisher

American International University Bangladesh (AUIB)

ISSN

1638-8742

Publisher URL

http://orp.aiub.edu/pages/ajbe_03_01.htm

Copyright

Copyright © 2004 AIUB.

Peer reviewed