The collapse of Asia's financial and stock markets represented a definitive shift in the fundamental economic patterns in the region. The collapse was not accidental, but rooted in the region's public policies and economic processes. It has defined Asia's economy for a generation, and will continue to do so. Its problems will not be solved quickly. The current recoveries are quite real, but far from representing a return to patterns prior to 1996-97, they represent rebounds in general down trends or bottoming out.
Nothing goes in a straight line.
There were several upturns during the U.S. depression that seemed to indicate its end. At the same time that Asia went into a massive downturn, the United States continued the expansion that began in 1982 and deeply intensified in 1995. This de-synchronization between the U.S. and Asian economies is stunning, when one considers the expectations at the beginning of the decade. We are not speaking simply of those who expected Asia to lead the way into the 21st century. The more important expectations were from those theorists who argued that the growth of international trade would create greater interdependence between countries and regions.