The Transformation of the East Asian Political Economy

This chapter seeks to document and analyse key trends and issues in the contemporary East Asian political economy (EAPE) with a particular focus on ASEAN. Two key aims are identified: first, to present a descriptive account of events and trends in the post-crisis region and second, to analyse the emergence of a nascent East Asian economic entity.1 An underlying theme, first enunciated in Chapter 1, is that this analysis points both to a radical transformation of the EAPE and further, that this transformation necessitates a modified, holistic approach to any investigation of MNE activity in the region. To facilitate these aims, this chapter considers six key trends and issues that taken as a whole constitute this radical transformation: stalled multilateralism, deepening regional economic interdependence, responses to the crisis in the fields of finance, politics and trade liberalisation, and the significance for the region of China’s continuing economic ascent. A final brief section offers a summary and some concluding thoughts.