Two Crises, Different Outcomes examines East Asian policy reactions to the two major crises of the last fifteen years: the global financial crisis of 2008–9 and the Asian financial crisis of 1997–98. The calamity of the late 1990s saw a massive meltdown concentrated in East Asia. In stark contrast, East Asia avoided the worst effects of the Lehman Brothers collapse, incurring relatively little damage when compared to the financial devastation unleashed on North America and Europe. Much had changed across the intervening decade, not least that China rather than Japan had become the locomotive of regional growth, and that the East Asian economies had taken numerous steps to buffer their financial structures and regulatory regimes. This time, Asia avoided disaster; it bounced back quickly after the initial hit and has been growing in a resilient fashion ever since.The authors of this book explain how the earlier financial crisis affected Asian economies, why government reactions differed so widely during that crisis, and how Asian economies weathered the Great Recession. Drawing on a mixture of single-country expertise and comparative analysis, they conclude by assessing the long-term prospects that Asian countries will continue their recent success.Contributors: Muhamad Chatib Basri, Minister of Finance of the Republic of Indonesia and Professor of Economics at the University of Indonesia; Yun-han Chu, Institute of Political Science, Academia Sinica; Richard Doner, Emory University; Barry Naughton, University of California, San Diego; Yasunobu Okabe, Japan International Cooperation Agency Research Institute; T. J. Pempel, University of California, Berkeley; Thomas Pepinsky, Cornell University; Keiichi Tsunekawa, National Graduate Institute for Policy Studies, Tokyo
Introduction: Crises, Corrections, and Challenges
by T. J. Pempel and Keiichi TsunekawaChapter 1. Two Crises, Two Outcomes
by T. J. PempelPART 1. Dealing with Crises: Continuities and ChangesChapter 2. A Tale of the Two Crises: Indonesia's Political Economy
by Muhammad Chatib BasriChapter 3. Unraveling the Enigma of East Asian Economic Resiliency: The Case of Taiwan
by Yun-han ChuChapter 4. Reacting to Financial Crises: Institutional Path Dependence in Korea and Thailand
by Yasunobu OkabeChapter 5. China and th Two Crises: From 1997 to 2009
by Barry NaughtonPART 2. Toward a Second East Asia Miracle?Chapter 6. Political Business and External Vulnerability in Southeast Asia
by Thomas B. PepinskyChapter 7. Success as Trap? Crises and Challenges in Export-Oriented Southeast Asia
by Richard DonerChapter 8. Japan: The Political Economy of Long Stagnation
by Keiichi TsunekawaConclusion: Toward a Second East Asia Miracle?
by T. J. Pempel and Keiichi TsunekawaWorks Cited
"T. J. Pempel and Keiichi Tsunekawa have edited a volume that succeeds in providing a comprehensive overview of the extent to which domestic politics across several East Asian countries determined their responses—and fate—during each of the crises.... Considering that the region seems to have learnt from the 1997–8 experience, this should be of interest to scholars and policy-makers in the region and beyond."
Ramon Pacheco Pardo
"[The book's arguments are made] cogently and with strong empirical backing.... Moreover, the essays on the region's different economies provide important nuances to the book's central arguments."
Walden Flores Bello
Focus on the Global South, Southeast Asian Studies
"In Two Crises, Different Outcomes, T. J. Pempel and Keiichi Tsunekawa bring together a strong cast of acknowledged experts to investigate the ability of East and Southeast Asian countries to emerge relatively unscathed from the global financial upheaval following the collapse of Lehman Brothers in 2008."
Gregory W. Noble, University of Tokyo, author of Collective Action in East Asia: How Ruling Parties Shape Industrial Policy
"Policymakers as well as scholars should read this book. It is a path-breaking and timely study of two recent East Asian financial crises that highlights 'the divergent political conditions that gave rise to particular crises as well as the political changes that individual crises may catalyze.' It does an excellent job of relating the domestic and global nexus and provides food for thought in a stimulating closing section by T. J. Pempel and Keiichi Tsunekawa that outlines alternative scenarios for the East Asian region."
Ambassador Barry Desker, Dean, S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore