Singapore's reaction to the Asian financial crisis suggests that while there were signs of deepening liberalization, there was little evidence of a profound retreat from the developmental state paradigm. The crisis generated an obsession with ““globalization compatibility””: aggressive externalization of private and state-led economic activities and a gradualist strategy for building economic community abroad.
Taiwan was a typical Capitalist Developmental State (CDS) from the 1960s through the 1980s. In this article the effects of the Asian Financial Crisis and the two political shocks that it sandwiched are assessed. We find that Taiwan's CDS structure has been seriously undermined for political, not for economic, reasons.