First published: Centre for European Reform, 11/01/2013
Many things will have to go right if Asia’s economy is to maintain its rapid rate of expansion. The economic models that worked over the last 30 years have either developed flaws or will not work as well in the future. And changing a model always throws up greater challenges and uncertainties than incremental changes in policy.
What has sometimes seemed like an economic miracle in Asia can be explained by conventional economic theory, aided and abetted by rapid globalisation. Asia’s ability to weather the global financial crisis is not down to a superior economic model, but the fact that its own financial crisis occurred a decade earlier, and private sectors had repaired their balance sheets by 2007……more