The market and the state in economic development

Abstract

Many East Asians recognise the vital role that open international markets and liberal trading rules have played in the economic success of their economies. The paper questions how this situation was achieved in East Asia and whether these mechanisms can be relied upon in the future. Rising protectionism, it is argued, could prevent the integration of ASEAN's "other four' and China into the international economy at high standards of living. In the past a liberal trade regime has been "enforced' by the commitment of a strong hegemonic state (the USA) but that state's own budgetary problems may lead it to abandon free trade principles. The way forward for the region now is for each country to pursue and maintain trade liberalisation measures, with APEC in a leadership role. -M.Amos Show more