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Parag Khanna: I think it’s a mix of both. And I think that represents the future of what the mixed capitalism kind of model is. The state-ism that Europe has always practiced, for corporations and the government, are very much in delusion.

And what Asia has learned to do and does itself, as Korea and Japan and China are doing, is something that basically, if you take European economies and Asian economies together, it puts us in the minority of players who have been practicing real genuine free market practices and economics in the last decades.

So I think we are going to learn to do things their way, rather than vice versa. That speaks to a broader protégé of globalization, which is that the countries don’t want to have unmanaged, unfed globalizations. They want to regulate, they want to have capital controls, they want to direct in-channel foreign investment in certain ways to serve their own national needs, and to build their infrastructure and so forth.

That is the model that is prevailing now in Asia because it's proved to have great payoffs. Whereas the free market model is what is blamed, correctly and incorrectly, for the Asian financial crisis.

Recorded on: 3/3/2008


Do the Asian economies want...

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