We are pleased to present the twenty-sixth issue of Southeast Asian Affairs, a comprehensive annual review of the political and economic trends and developments in Southeast Asia.

Designed to be easily readable yet in-depth, informative and analytical, the annual has come to be a standard reference for scholars, policy-makers, private sector executives, and journalists who seek to understand and keep up to date on the dynamics of Southeast Asian developments.

The regional economic crisis was the most important development of 1998, overshadowing everything else. Growth rates plummeted, and Indonesia, Thailand, and Malaysia experienced deep recessions. There was also significant political fall-out in Indonesia and Malaysia. Although signs of recovery appeared towards the end of 1998, it seemed to be patchy and hedged by uncertainties. And there is no early end in sight to the political uncertainty in Indonesia.

I take this opportunity to thank the authors who have contributed to this publication. While the Institute encourages the statement of all points of view in the publication, the authors alone are responsible for the facts and opinions expressed in their articles. Their contributions and interpretations do not necessarily reflect the views of the Institute.