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Background on Foreign Policy


Arab Spring
United Nations
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Asian Economic Crisis
The economies of the Asia-Pacific region until 1997 seemed to be rushing towards prosperity on par with the US and Europe. But in July 1997, the currencies of Thailand and Indonesia collapsed, followed by recessions throughout East Asia. The 'Asian Miracle' countries were characterized by limited democracy (usually one-party) in open economies (albeit via political insiders). The current situation is:
  • Japan: In slump since 1990 and in recession since June 1998; Japan outlined an Emergency Economic Package in Nov. 1998.
  • Indonesia: President Suharto resigned after 1998 riots in which 1,200 were killed; elections promised for 1999.
  • East Timor: Indonesia invaded East Timor in 1975 shortly after Portugal granted it independence. This island of 800,000 people (to Indonesia's 200 million) voted 80% for independence in August 1999. In September, Pres. Habibie invited in an Australian-led, UN-sponsored force of 7,000, including US support groups but no troops, to stop a massacre by the Indonesian army.
  • China: Holding the line on devaluing its currency is credited with stopping total Asian economic collapse. China's economy has been growing by 8-10% annually in recent years, by far the world's fastest growth. They maintain a partially open economy with a Communist government.
  • Asian Tigers: Singapore, Hong Kong, South Korea, and Taiwan all suffered minor recessions and are currently recovering.
  • ASEAN: Malaysia, the Philippines, Brunei, and Thailand were economically weaker than the more developed 'Tigers,' and suffered accordingly. Nevertheless, ASEAN admitted 4 new members (Vietnam, Cambodia, Myanmar, and Laos), which may open and democratize those countries.

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