The Plaza Accord as a Catalyst for Accelerated Growth in Southern and Southeast Asia

Abstract

The rapid growth of many of the South and Southeast Asian economies in the last quarter of the previous century was quite remarkable. Some writers referred to the phenomenon as “the Asian Miracle.” Miracle or not, growth in these economies was quite rapid.Over the years reports and articles have elucidated explanations for the occurrence. The World Bank’s study report (World Bank, 1993), for example, focuses on the unique mix of public policies that were used by various economies in the region. These policies often relied upon close supervision and control of those economies by the implementing governments. Targeting, by the governments, of sectors for growth is often one part of the explanations that have been proffered, as is an “export push” approach to growth. The economic wisdom and competence in execution of the bureaucrats who husbanded this growth no doubt played a large role in fostering the growth. However, one can ask, “Why those economies? Why there? Why then?”