This second edition of East Asia: From Miracle to Crisis builds upon the analysis of the first edition published in June 1998. The first edition outlined some of the most important positive and negative lessons from the East Asian development experience over the past forty years, including from the ongoing regional crisis. In order to be useful to policyand decision-makers, the focus was on the role of the state. While the lessons drawn remain relevant to many developing countries, a final section outlined key lessons particularly relevant to Viet Nam at this current juncture of the country’s development process.

This present edition supplements the analysis in the first edition in several ways. First, it updates the analysis in light of more recent developments. Secondly, it looks more closely at the social impact of the regional crisis in the countries most affected, the potential impact on Viet Nam, and related social policy implications. Thirdly, this edition attempts to add clarity to the rich, but at times confusing, international debate on the regional crisis in the hope of facilitating the domestic policy debate and needed actions in Viet Nam. This second edition is also written in a non-technical manner to maximize accessibility.

Part of the basis for the supplements to this second edition was a two-day policy conference on the role of the state in the origins and management of the regional crisis organized by the Central Institute of Economic Management (CIEM) with UNDP assistance in Ha Noi on 31 August – 1 September. The conference involved high-level policy advisors and eminent researchers from Indonesia, Thailand, South Korea, Malaysia, Viet Nam, Sweden, Canada, and the USA. The main purpose of the two-day dialogue was to share country experiences and lessons learned in the origins and management of the crises in the various Asian countries concerned, and to examine the relationships between globalization, governance and stability. The conference was motivated by the first edition of East Asia: From Miracle to Crisis, and a desire by Vietnamese officials to better understand the ingredients and policies for preserving stability, which has been for many years, and remains, the highest priority of the Vietnamese State. The two-day conference largely endorsed the lessons learned and policy implications outlined in the first edition, while supplements and qualifications offered at the conference are taken into account in this second edition.