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Book Description: The prominence of East Asia in the global economy is now unquestionable, and its market expansion, driven by a population of nearly 1.9 billion, will strongly influence the tempo of international trade and growth of global incomes. However, while the potential of East Asian economies has been amply demonstrated, their future performance is by no means assured. The crisis of 1997, the uneven recovery, the intensifying trade competition, and the rapidity of technological change call for initiatives by governments and by firms on several fronts. East Asia needs to sustain its hard earned stability by recalibrating its fiscal and exchange rate policies, by strengthening social safety nets and governance, and by invigorating financial, regulatory, and legal institutions. Yet these are only preconditions; future economic performance will depend on keying growth to productivity. This book demonstrates that stability can be a stepping stone to growth that is led by innovation, identifies and analyzes the ingredients of an innovative economy, and discusses how these can be meshed together by government policy and market initiatives. It also provides an in depth assessment of the policy trade offs identified in the recently published Can East Asia Compete?

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