Columbia International Affairs Online: Working Papers

CIAO DATE: 11/2008

State Power and the Asian Crisis

Linda Weiss

November 1999

Institute on Globalization and the Human Condition, McMaster University

Abstract

The Asian financial crisis has re-opened the debate about the role of the state in the region's industrialisation. Just when there seemed to be growing acknowledgment across the economic and political disciplines that certain kinds of state involvement were vital to the rapid upgrading of the Northeast Asian economies and that understanding what made states effective or ineffective was a crucial issue, along came the financial hurricane.1 Profound disarray of an economic and social nature has been the most immediate and important consequence of this watershed event. Theoretical disarray has followed closely in its path.2 This paper seeks to inject some theoretical rigour into the discussion of the Asian crisis. State power in the Asian setting - whether and in what way the state's transformative capacity is weak or robust - and how it relates to the impact of international markets is central to the argument that follows.