Crisis dynamics and regionalism: East Asia in comparative perspective

This paper compares the current global financial crisis with the one that struck East Asia a little more than a decade ago. The analysis reveals some striking and surprising differences between the two periods. Whereas the first crisis had a catalytic impact on Asian regionalism this one may not. Despite East Asia generally and China in particular seeming to emerge stronger relative to the US from the current crisis, the impact of the second crisis on Europe reminds us that there is nothing inevitable about the course of regional integration. Not only are Europe's economic problems likely to diminish whatever enthusiasm there was for initiatives such as a common currency in Asia, but China may also find itself increasingly playing a global rather than a regional role. In short, crises can have very different impacts and provide an important insight into the interconnected dynamics of regional and global processes.