The currency turmoil that hit Southeast Asian countries in mid-1997 was initially expected to last only a few months. More than a year down the road, far from being resolved, the turmoil has spread throughout the world. No one has really benefited except possibly the currency traders and share-market speculators.

One must ask why this is happening. Is it part of the usual economic cycle? Is it because the economic system and practices of all of the affected countries are wrong? Is it because of corruption, of crony-capitalism and nepotism? Everyone must concede that, prior to the turmoil, the countries of East Asia were among the most dynamic and prosperous in the whole world. Their progress and prosperity were real. Employment rates were high. Per capita income increased steadily. From poor agricultural countries, they had become highly industrialized nations, producing quality high-tech goods for markets worldwide. They were set to grow and grow.

The free marketeers might be reminded that countries do not grow and develop by accident. The environment must be conducive to growth. For this, the government must play a role. All governments are corrupt to one degree or another. But what's certain is that, if a country does well, the government cannot be totally corrupt and incompetent. The governments of East Asia are far from perfect, but no one can say they did not bring prosperity as well as real, tangible and personally felt benefits to their people. Such was the progress and potential that investors came in droves to get a share of that prosperity. And they all profited hugely from their participation.

What do we see today? These countries and their peoples are suffering. It takes a distorted mind to say that the present situation is better than the prosperity of the past. Yet we are being told that the destruction of our economies will be good for us in the long term. How do we tell the unemployed millions, the bankrupted banks and busted companies that their misfortunes are good for them and their nations? How do you tell a man being devoured by a tiger that he is really helping to preserve a treasured species?

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R E L A T E D   S T O R I E S :

COVER STORY Prime Minister Mahathir Mohamad banishes Anwar
CRANKY OLD MAN The PM has a history of lashing out
VIEWPOINT Mahathir rails against financial orthodoxy
INTERVIEW Anwar explains what went wrong
OUT OF LINE Where does the ex-heir go from here?
POLL Does former Deputy Prime Minister Anwar Ibrahim have a future in Malaysian politics?
POLL Will the new currency controls help or hurt the Malaysian economy?