Randall Peerenboom, China Modernizes: Threat to the West or
Model for the Rest?
• After the financial collapse in 1997 with Asian countries’ economies
regressing, critics lashed back by stating that the EAM was definitely
not here to stay.
• The countries that followed the EAM were: Taiwan, Hong Kong, and
o The other countries such as Indonesia, Malaysia, Thailand, and
the Philippines who did not follow the EAM ended up suffering as
• China’s recovery from the crisis was done by their rejection of the
International Financial Institution’s advice in how to handle the crisis.
o Hong Kong continued t prop up currency with injection of billions
o Another example is South Korea opening its capital markets to
foreign investors, improved stock markets, and privatized state
• IMF blunders included: tight fiscal policies based on crisis intervention
• The EAM was successful because of the values that Asian businesses
o For examp