NIKOLAS BUSSE / HANNS MAULL
Enhancing Security in the Asia-Pacific.
European Lessons for the ASEAN Regional Forum
Asia-Pacific is still very much bound to balance-of-power politics.
To move towards a more stable security environment, the region will
have to further develop supranational institutions, embark more on preventive
diplomacy and transform interstate relations through cooperation and
integration. European experiences would offer helpful orientation.
MARK T. BERGER
Bringing History Back In: The Making and Unmaking of the East Asian Miracle
Contrary to ahistoric neo-liberal and developmental-state explanations,
the East Asian Economic Miracle has been closely linked to the Cold
War. The recent financial crisis helped to reassert U.S. hegemony in
the region and to rebuff the challenge of state-centered developmentalism.
But it also heralds the coming global crisis of apparently victorious
The Crisis of Thailand and the International Monetary Fund
IMF policy prescriptions have rebuilt investor confidence in Thailand.
But unemployment and poverty continue to rise. Many now blame the Fund for turning the financial crisis into a social disaster of historic
proportions. The critique extends to the government and the inept and corrupt bureaucracy. Greater popular participation offers the only way
out of the crisis.
A New Financial Architecture for Reducing Risks and Severity of Crises
Good macroeconomic policies and solid institutions alone do not protect
LDCs from devastating financial crises. International regulation is
needed to restrict cross-border flows of short-term money. A framework
has to be provided to support countries, if a crisis breaks, with sufficient
unconditional liquidity. Debt workout procedures must prevent the uncontrolled
outflow of capital.
JOHN EATWELL / LANCE TAYLOR
Towards an Effective Regulation of International Capital Markets
Complete liberalization of financial markets should be abandoned as
a policy goal because it impairs economic growth. Capital flows must
be regulated and restricted if necessary. A World Financial Authority
with enforcement powers should coordinate regulation internationally
so as to manage systemic risk and ensure an environment conducive to
high growth. On the basis of such regulation, the IMF should become
a lender of last resort.
The Consequences of Kosovo
Lasting peace in Kosovo requires both that the UN intervention force
restores standards of inter-ethnic co-existence and that the West helps
to overcome the economic backwardness of the whole Balkan region. Kosovo
highlights the need for common standards of law, assertively pursued
by the international community. But NATO´s one-sided intervention, in
neglect of international legal procedure, did not serve this end. It
has rather increased the likelihood of Russian nuclear rearmament -
with potentially fatal consequences for Europe.
The Third Way at the Crossroads
The Third Way concept stands for an incorporation of (neo-)liberal
recipes into social-democratic policy designs. However, such adjustment
to changed economic realities must not sacrifice social-democratic values.
Throughout Europe, the welfare state has to be brought much more in
tune with market requirements. But the market must not have the last
word on people´s life chances. Social security must be maintained as
basic citizen right.