Fashioning a New Korean Model out of the Crisis: The Rebuilding of Institutional Capabilities

  • John A. Mathews


The financial meltdown in East Asia in 1997–8 had dramatic effects not only on the countries of the region itself, but on the scholarly debates over the sources and limits of the ‘East Asian Miracle’ model of development as well.1 The achievements of the fast-growing East Asian economies are not in question: as Joseph Stiglitz put it, the East Asian Miracle was real.2 But the methods used by the East Asians in constructing this miracle were cast in a pitiless spotlight through the financial chain-reactions of 1997, and, in many cases, were found wanting. Positions adopted before the crisis have thus had to be revised.


Equity Ratio Foreign Borrowing Institutional Capability East Asian Miracle Merchant Bank 
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© Cambridge Political Economy Society 2001

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  • John A. Mathews

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