Of the developing nations of East Asia, Indonesia came relatively late to liberalizing its trade and investment regime. Only in the mid-1980s, when it was clear that oil revenues alone would not suffice and that a new engine of growth was needed, did the country's government swing behind a systematic deregulation effort. Tariffs were cut, non-tariff barriers were lowered, foreign investment restrictions were reduced, export promotion incentives were enhanced, and various financial sector regulations were eased. All this combined to spark a labor-intensive export-led economic boom that was accompanied by an expansion in wages and employment and a boost in productivity. This book documents how Indonesia truly became part of the East Asian miracle story starting in the mid-1980s. Destined to become a leading case study of export-led development in Indonesia, this book grew out of a World Bank/Indonesian Economic Society Symposium held in Jakarta.

There was, however, a parallel story as well, of crony capitalism and weak governance, that led to the financial and political crisis of 1997-98. These aspects were reflected in continued protection of certain sectors where the cronies were active, in restrictions on domestic trade and competition that were left in place for their benefit, and in financial manipulations that were conducted to their advantage. These aspects are noted as well in the book and pulled together in the concluding chapter, which takes the story up through the crisis years to the present.

The East Asian Crisis of 1997 and the following economic meltdown has raised new questions about the role of public policy in Asian economic growth and the best mix of policies to insure the survival of economic growth. Although economists agree that macroeconomic stability, the encouragement of exports and FDI inflows, and the development of human resources have been important in East Asian growth, they do not agree on whether industry specific policies have been useful. The policy experiences of the countries are diverse and do not show a strong relationship between policies and success. Bringing together the work of development economics experts, this book looks at the role of economic policy in East Asian development, the challenge of the economic meltdown, and the critical issues raised by that meltdown.

Based on research and conferences at the International Centre for the Study of East Asian Development in Kitakyushu, Japan, the book opens with general chapters considering the policies behind East Asian growth, then discusses the policies of each country in country specific chapters. Up to date in its discussion, the book considers the questions raised by the crisis of 1997 from a variety of perspectives.

The papers collected here, originally presented at a seminar cosponsored by the East-West Center and the Asian Productivity Organization, address the links between energy sector performance and economic development in the Asia-Pacific region. The contributors include senior-level government officials and researchers concerned with energy planning and economic development. Their aim throughout is to identify the major linkages that do exist, to assess the role of the energy sector in future development, and to discuss energy policy options that will optimize economic growth.

Divided into five major sections, the volume begins with papers that explore regional issues of energy and economic development. Separate chapters are devoted to the effects of OPEC and oil price fluctuations, the relationship between energy and economic growth, energy trade in Asia and the Pacific, changes in the balance of payments and capital flows, and problems of property rights and petroleum exploration. The sections that follow present case studies of individual Pacific and Asian countries, organized by region. Particular attention is paid to the effects of increasing interdependencies within the region and to the relative success of policies developed in response to the long-term outlook for oil supplies and prices. Students of energy economics and Asian development will find "The Energy-Economy Link" invaluable reading.