Challenging claims both of those who saw the East Asian story as a vindication of free market principles and of those who attributed the success of Taiwan and other countries to government intervention, this text turns attention to the way allocation decisions were divided between markets and public administration and the synergy between them. In this paperback edition, author Robert Wade reviews the debate about industrial policy in East and Southeast Asia and chronicles the changing fortunes of these economies over the 1990s. He extends the original argument to explain the boom of the first half of the decade and the crash of the second, stressing the links between corporations, banks, governments, international capital markets and the International Monetary Fund. From this, Wade goes on to outline a new agenda for national and international development policy.