Economic Liberalization and Integration in East Asia: A Post-Crisis Paradigm

Contents......Page 12
List of Figures......Page 16
List of Tables......Page 17
List of Abbreviations......Page 18
Part I. Successes and Failures of the East Asian Development Paradigm......Page 20
1. Introduction......Page 22
2.1. East Asian Development Models of Four Different Generations......Page 28
2.2. Accomplishments of the East Asian Development Model......Page 33
2.3. Initial conditions, Asian values, and Institutions......Page 37
3.1. Market Friendly Policies......Page 39
3.2. Interventionist Policies and Export Promotion......Page 41
3.3. The Role of Government and Governance......Page 46
4. Failures of the East Asian Development Model: An Overview......Page 52
5.1. The Breakdown of the Governance Mechanism......Page 56
5.2. Institutional Quality......Page 59
6.1. Corporate Sector: the Fall of East Asian Corporations......Page 61
6.2. Financial Sector Fragility: Financial Repression and Crony Capitalism......Page 64
Part II. The Asian Crisis: Causes and Consequences......Page 72
7.1. Capital Inflows and Investment Boom and Bust......Page 74
7.2. Structural Reform and Recovery......Page 77
8.1. Structural Weaknesses......Page 82
8.2. Were they the Direct Causes?......Page 83
8.3. The Liquidity Panic View......Page 88
9.1. The IMF as a Manager and Lender of Capital Account Crises......Page 90
9.2. Multiplicity of Reform Programs......Page 93
10.1. Conflicts between Structural Reform Measures......Page 97
10.2. Wrong Sequencing in Financial and Corporate Restructuring......Page 99
Part III. Institutional Reform: Challenges and Prospects......Page 104
11.1. The Role of Government......Page 106
11.2. Industrial Policy and Export Orientation......Page 107
12.1. Governance......Page 115
12.2. Public Sector Malfeasance......Page 121
13.1. Corporate Debt Workout......Page 124
13.2. Restructuring of Family-owned Industrial Groups......Page 126
14.1. Social Welfare......Page 131
14.2. Democratization and Labor Participation......Page 137
Part IV. Financial Liberalization and Opening......Page 142
15. Progress in and Prospects for the Financial Sector Reform......Page 144
15.1. Banks vs. Capital Markets in Emerging Economies......Page 145
15.2. Reform Agenda......Page 148
16.1. Reluctant Floaters......Page 153
16.2. Intermediate Regimes for East Asia......Page 162
17.1. Capital Account Liberalization and Economic Recovery in East Asia......Page 168
17.2. Prospects for Capital Account Liberalization......Page 172
Part V. Economic Integration in East Asia......Page 180
18.1. Proliferation of Bilateral FTAs......Page 182
18.2. Factors behind the Proliferation of FTAs in East Asia......Page 186
18.3. Negotiated Liberalization or Protectionism?......Page 187
19.1. The Chiang Mai Initiative......Page 191
19.2. The Asian Bond Market Initiative (ABMI)......Page 197
20.1. Structural Constraints......Page 204
20.2. Trade Integration......Page 207
20.3. Financial Integration......Page 209
21.1. Causes and Potential Consequences of the Transpacific Imbalance......Page 214
21.2. Policy Adjustments in East Asia: Monetary and Fiscal Policy......Page 221
21.3. Adjustment of Exchange Rate Policy in East Asia......Page 225
21.4. Intra-regional Policy Adjustments and Coordination in East Asia......Page 233
21.5. Inter-regional Policy Coordination......Page 236
Part VI. Whither Economic Liberalization and Integration in East Asia?......Page 240
22.1. What is Left of the Pre-crisis East Asian Development Paradigm?......Page 242
22.2. Economic Restructuring: Is Emerging East Asia Halfway there?......Page 243
23.1. Trade Liberalization or Export Push?......Page 248
23.2. China’s Economic Ascent and Economic Liberalization in East Asia......Page 250
24. New Paradigm for Development: A Mixed Economy Model......Page 254
25. Concluding Remarks......Page 261
References......Page 266
B......Page 280
C......Page 281
D......Page 283
E......Page 284
F......Page 285
G......Page 286
I......Page 287
K......Page 288
L......Page 289
M......Page 290
P......Page 291
S......Page 292
T......Page 293
V......Page 294
Z......Page 295