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16 - A Crisis of Governance

Published online by Cambridge University Press:  05 June 2012

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Summary

Yesterday's world order is going fast, while tomorrow's world has yet to emerge. We are not in fact facing the ‘new world order’ today's politicians so constantly invoke. Rather we are facing a new world disorder – no one can know for how long.

~ Peter Drucker

We now come to the key lessons that we can draw from the Asian and current crises.

RITES OF PASSAGE

The Asian crisis was like a drama where we can blame the actors (Asians versus foreigners), the stage (weak domestic architecture versus faulty international architecture) or the script (bad domestic policies versus wrong international medicine). What made the Asian crisis even more fascinating is that it was not a case of the collapse of failed or failing states, but the crisis of previously highly successful states.

The more I reflect on the Asian crisis, the more convinced I am that the crisis was a clash of mindsets between the political economy of domestic economies and the rise of globalization. This clash of mindsets was inevitable, as the world becomes more and more interconnected and interactive. The Asian systems of public and private governance that worked and succeeded spectacularly in the Asian Miracle period proved to be fragile and vulnerable under the shocks of global capital flows.

Similarly, more than a decade later, the global crisis erupted because no economy is now an island to itself. A chain of domestic events, each apparently harmless or benign in itself, can be catastrophic when linked globally.

Type
Chapter
Information
From Asian to Global Financial Crisis
An Asian Regulator's View of Unfettered Finance in the 1990s and 2000s
, pp. 396 - 410
Publisher: Cambridge University Press
Print publication year: 2009

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  • A Crisis of Governance
  • Andrew Sheng
  • Book: From Asian to Global Financial Crisis
  • Online publication: 05 June 2012
  • Chapter DOI: https://doi.org/10.1017/CBO9780511806926.017
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  • A Crisis of Governance
  • Andrew Sheng
  • Book: From Asian to Global Financial Crisis
  • Online publication: 05 June 2012
  • Chapter DOI: https://doi.org/10.1017/CBO9780511806926.017
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • A Crisis of Governance
  • Andrew Sheng
  • Book: From Asian to Global Financial Crisis
  • Online publication: 05 June 2012
  • Chapter DOI: https://doi.org/10.1017/CBO9780511806926.017
Available formats
×