The crisis of postwar East Asian capitalism: American power, democracy and the vicissitudes of globalization

Abstract

The debate over the East Asian crisis has thus far been led by economists who have focused on technical economic issues and policy goals at the expense of macro historical-structural questions. Foremost amongst the neglected questions is whether and under what conditions ‘Postwar East Asian Capitalism’ (PWEAC) will either continue to flourish or undergo a radical political transformation ‘after the crisis’. This question must be understood in the context of the changing geopolitical framework of the post-Cold War era. PWEAC is under great pressure for reform from both external and internal forces. Whether a ‘new political architecture’ for capitalism in East Asia is emerging is the central issue and one which will determine the future direction of Asia. The demise of authoritarian-oligarchic capitalism in Asia may have been accelerated by the economic crisis. The most enduring result of the Asian crisis is not the presumed derailing of the (re)ascent of Asia in the world economy but rather the weakening of the non-democratic state forms that have characterized East Asia's capitalism for decades. Popular demands for change represent a real challenge to both the domestic authoritarian-oligarchic power structure of PWEAC and its crucial geopolitical underpinning and external orientation.

A people that has existed for centuries under a system of castes and classes can arrive at a democratic state of society only by passing through a long series of more or less critical transformations, accomplished by violent efforts, and after numerous vicissitudes, in the course of which property, opinions, and power are rapidly transferred from one to another...

Alexis de Tocqueville

Democracy in America, Vol. II, 1840

To reason with governments, as they have existed for ages, is to argue with brutes. It is only from the nations themselves that reforms can be expected.

Thomas Paine

The Rights of Man, Preface to the French Edition, 1791