Turning Point For Globalization (Washington- led globalization over)

[Dover]

A signal from Thailand

HONG KONG The worm has turned. The early repayment by Thailand last week of $12 billion borrowed from the International Monetary Fund at the time of the Asian crisis was not just a technical one made possible by its now buoyant external financial conditions. It was a conscious rejection of the neoliberal doctrines known as the Washington consensus, whose influence reached their high-water mark following the Asian financial crisis. Those doctrines are themselves now suspect at home as the U.S. economy shows many of the signs that characterized pre-crisis Asia.
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At the very least the Thai move is an indication that the era of Washington-led globalization is over and that new forces are at work that may lead to new interpretations of globalization, or rejection of its themes of ever freer trade in goods and capital.

Thailand's decision was accompanied by a burst of nationalist sentiment from Prime Minister Thaksin Shinwatra. Standing in front of a giant national flag and using words more in keeping with the demeanor of his Malaysian neighbor, Mahathir bin Mohamad, than of most Thai ministers, the former businessman declared that Thailand would "never again fall prey" to the forces of foreign capital or need to resort to IMF help.
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The rhetoric now seems likely to be followed by the reversal of some crisis era measures forced on Thailand by the IMF, which opened up many industries to foreign capital. Changes in bankruptcy and property laws enabled foreign companies to buy local ones crippled by the currency and debt crisis. There will not be a wholesale retreat from liberalization. Thailand is too pragmatic and competitive to cut off its own nose to spite foreigners. Some liberalizations are now enshrined in World Trade Organization commitments - and a Thai heads the WTO....>> MORE

http://www.iht.com/articles/105457.html
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