State-market relations in East Asia and institution-building in the Asia-Pacific

In the economic development of East Asian countries during the 1980s and 1990s, there has emerged a distinct form of capitalism characterized by active state intervetion in the economy and close state-business relations. This article attempts to identify the key ingredients of the relations between the state and market that has led to industrial development in East Asia. It also explores how these characteristics are reflected in institution-building in the Asia-Pacific as, for example, in the case of APEC where conflicts have developed between the Asian and Western members in their attempts to promote economic cooperation.