Asian Crisis, Financial Systems and Urban Development

The Asian financial crisis, which violently thwarted the east Asian miracle in the summer of 1997, has subsequently led east Asia to the building of a new financial architecture. This paper argues that the new financial architecture, modelled after the globally influential, market-centred US system, clashes with Japan's regionally active, state-centred financial system. And it explores the implications of these two financial systems for urban development in Asian capital cities. The paper concludes that Asian capital cities will do better with the state-centred financial system than with the market-centred financial system.