It is ironic that the very institutions that promoted neoliberalism will backtrack once their ideology turn their backs on them. As the world faces an imminent financial meltdown, the IMF issues a press statement urging ‘forceful and cooperative action’. It cited, (I almost choked on this one) that one of the causes of this crisis was the ‘regulatory, supervisory failures in advanced economies’.

Hasn’t the IMF always held up the West as the model for financial growth, especially during the Asian 1997 financial crisis? Remember how Asian countries were criticised as being ‘not transparent or accountable’ enough? As late as January this year, European leaders had already warned their financial institutions to practise ’self-regulation’ or else they will have to do something. The warnings were made but they fell on deaf ears. As the crisis is about to hit the roof, the EU and US government have decided to bail the banks out or to put it attractively, re-capitalise the industry. Nothing is mentioned of how these financial CEOs will be dealt with for having caused the crisis. No word is mentioned on how financial speculation which leads to aggravating global food and fuel prices will be curtailed.

No wonder Noami Klein noted wryly that free market ideology is far from over. As she relates:

‘When those bubbles burst, the ideology becomes a hindrance, and it goes dormant while big government rides to the rescue. But rest assured: the ideology will come roaring back when the bailouts are done. The massive debts the public is accumulating to bail out the speculators will then become part of a global budget crisis that will be the rationalization for deep cuts to social programs, and for a renewed push to privatize what is left of the public sector. We will also be told that our hopes for a green future are, sadly, too costly’

Will this financial crisis signal the coming of a new level of seismic global shock that will promote more sinister free market ideologies and initiatives which the journalist has predicted? I hope she is wrong though the major decisions and statements made by financial institutions such as the IMF and world leaders and the bailouts only seems to confirm my worst nightmares. The motto seems to be this: Let’s save the financial institutions and system using taxpayers money and forget how it has failed us even though we knew way before hand this was going to happen.

As she urges, and rightly,’ None of this, however, will happen without huge public pressure placed on politicians in this key period. And not polite lobbying but a return to the streets and the kind of direct action that ushered in the New Deal in the 1930s. Without it, there will be superficial changes and a return, as quickly as possible, to business as usual’.

The Political Economy of South East Asia; Conflicts, Crises, and Change (Second Edition) edited by Garry Rodan, Kevin Hewison, and Richard Robison

Empire and Neoliberalism in Asia edited by Vedi R. Hadi

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The Political Economy of South East Asia, published by Oxford University Press, dissects the phenomenon of the 97 Asian financial crisis using mainly three established models, namely the neoclassical political economy; historical instituitionalism; and social conflict theory. The latter forms the backbone of this book as the writers seek to explain using the thesis to explain the crises. They also touch on the commonly held fallacies of modernisation and dependency theories in how they fail to completely explain the situation.

By bringing us through the history of the individual countries and charting the rise and fall of their economies, the book draws parallels in the south east asian nation. Yet, differences are highlighted by explaining how different governments are forced to react due to their political realities.

The chapter on Economic Crisis and the Political Economy of Economic Liberalism in South-East Asia, is perhaps most insightful. It is a summary of how post financial crisis reforms are affected by the nationalistic sentiments, political climate and governmental will. The following chapter about labor, which describes the rise of unionism and subsequent clampdown in certain nations, counts as essential reading since labor is often relegated to a minority role in study of political economics. The last chapter by Mark on Japan, seeks to explain how the revered east asian economic leader, has not tried extending its political hegemon in the region.

Required reading for people who are interested in the political realities and economies of the south east asian region post 1997 financial crisis.

On the other hand, Vedi’s more recent book, post 9/11 and Iraqi Invasion, paints a less pretty picture of US imperialism efforts in the region . Some of the writers in the book, prefers to call it US hegemony instead. The essays in this collection, while uneven in quality, contains essays, worth trawling.

The chapter by Elmar Altvater which touches on fossil energy regimes explains why current global economic growth, driven by fossil fuel and financial markets is unsustainable while the rise of the necons, charted by Mark Beeson, explains the tradition of American exceptionalism and how it has always influenced American foreign policy. History lessons much needed.

Garry Rodan and Kevin Hewison’s chapter on Singapore and Thailand details the creeping authoritarianism due to the advent of Bush’s war on terror. The writers explain how Bush’s preemptive doctrine has strengthened both governments and gave them ammunition to clamp down on legitimate human rights criticisms. Vedi’s article on Indonesia provides an insight on the “fragility of Indonesia’s democracy” due to the war on terror. The world’s largest Muslim nation, not only has to contend with rising anti-US sentiments, but also increasing threats of a “back to Suharto” military rule. On the other hand, Taiwan’s move towards democracy, prompted by the growing interdependent relationship between China and the US, faces another set of strategic issues. China’s policy on Taiwan has also affected the latter’s politics as Presidential leaders play on the external China threat to their advantage.

To have an understanding of contemporary Asian and South East Asian politics and their economies, both books are a good start.