Asian economic policy

Asian economic policy

From Japan to the Philippines, from Taiwan to Indonesia, a clutch of Asian countries is facing leadership upheaval. Each of these commotions has a special national cause but they perhaps reflect a common regional conclusion: Asia's long-term recovery depends on a marked improvement in governance. Such an improvement has yet to happen and achieving it will be bumpy for Asia's democracies. On the face of it, the five countries most affected by Asia's devastating financial crash of 1997 (Japan, South Korea, Malaysia, the Philippines and Thailand) have been rebounding strongly. However, this economic recovery is already ebbing because of the effect of high oil prices -- and it remains worryingly vulnerable to any deterioration of the U.S. economy. In the absence of robust economic growth, Asia's voters are certain to be far more demanding of their leaders than in the past. And, in spite of the risk of short-term political volatility, that is surely to be welcomed.

-- The Financial Times, London