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Throughout the 1980s and into the early 1990s, it seemed Asia could do no wrong. The Asian Tigers – Taiwan, Singapore, Hong Kong and South Korea – were being quickly followed by the Asian Cubs – Malaysia, Thailand, Indonesia and the Philippines. It was believed they had found the key to long-term, double-digit growth of 8 per cent to 10 per cent that could last in perpetuity – low taxes, openness to trade and foreign investment, big capital spending on infrastructure, government intervention in key economic sectors and investment in education. And, of course, paternalistic strongman leaders, considered “visionary” nation-builders, like Singapore’s Lee Kuan Yew, Indonesia’s Suharto, Malaysia’s Mahathir Mohamad, and the army generals who ran Thailand like Prime Minister Prem Tinsulanonda and Chavalit Yongchaiyudh. Western economists and investors swooned. They wrote books about these Asian leaders’ economic brilliance. Seldom mentioned, or largely downplayed, was the fact that these were also authoritarians who trampled over human rights, locked up dissenters and shackled the press in their countries. But the proof of their success was in their high growth rates. Reducing poverty, I was consistently told, was more important than expanding the democratic space. First 100 days of President Trump: like a drunk stumbling down a highway Asia’s self-confidence born from the 1980s boom gave way to a sense of superiority which in turn gave way to hubris. And this soon became wrapped in its own over-arching political philosophy called “Asian values”, which was then touted as an alternative to the Western model with its emphasis on democracy, human rights and individual freedom. Argue against it, and Asian leaders would throw their double-digit growth rate right back in your face. The biggest problem underlying the myth of the Asian miracle was the mountain of bad debt. Much of the 1980s and early 1990s boom was based on inflated property values, and many Asian urban yuppies had jumped into the property market like it was a Macau casino. Banks were lending larger and larger amounts, condo prices and stock values were soaring in Bangkok, Jakarta and Manila, and it seemed the good times would keep on rolling.
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