Globalization and the Developmental State: Reflections on the Asian Financial Crisis

Vincent Wei-cheng Wang, University of Richmond


This chapter discusses the challenges that globalization poses to the developmental state. It argues that the crisis induced by participation in the global economy has made it imperative to reform, but not jettison, the state. It will begin with an argument for placing the present globalization in a longer historical context. Then, it will contrast two different theories on the East Asian economic miracle that are relevant to the discussions on globalization. It will then show the degree of Asia's globalization in light of certain commonly used indicators so as to establish a partial account of the Asian financial crisis. It will conclude with a discussion of the future of the developmental state.