The End of Both Roads?: The Developmental State,Economic Liberalism and the Asian Crisis

Abstract

This paper considers the two roads to economic development widely promoted in the early 1990s in the context of the Asian Crisis. The first is that of market friendly policies combined with the liberalisation of domestic and external financial markets, which would promote growth by attracting inward investment. The second is the counter claim that there was a distinctive Asian road based on high levels of domestic saving and state administrative guidance. Both roads are seen to have failed as readily and widely replicable development strategies.