The Other Malaysia: ASEAN and Globalization

An integrated world economy is seen by many as beneficial for the developing world, but recent events in Southeast Asia cause some to question this optimism. After an announcement to impose controls on foreign capital in Thailand led to a 14 percent drop in Bangkok’s stock market, the newly-installed government was forced to retract its statement in a desperate effort to avoid a repeat of the economic crisis of 1997-98. In neighboring Malaysia, speculation about a partnership between General Motors and Proton, the country’s main automobile producer, has led to concerns that the domestic manufacturer will lose more than it gains. Although the rapid entry of nations in Southeast Asia into the global market during the 1980s led to considerable growth, some analysts question whether overexposure could harm ASEAN economies. Others question whether smaller and weaker economies of Southeast Asia should stay clear of globalization for the time being. In an article for “Daily Times,” political scientist Farish Noor calls globalization a “rat race.” When it comes to economic integration, haste, especially without understanding the long-term consequences, may not be the best approach for developing nations. – YaleGlobal