Globalization and SMEs in East Asia (review)

education and training provides the foundation upon which economic growth and social development is constructed. The essays in the volume demonstrate collectively that China has indeed achieved substantial economic successes but in order to sustain and maximize them a variety of reforms and policy initiatives are required. Importantly, China's substantial economic growth has had a significant impact on Southeast Asian countries and other nations in East Asia. During the past decade, as Friedrich Wu notes, China's manufactured exports have become so competitive that they have replaced some Southeast Asian exports to third markets. The author contends that this phenomenon negates any need for the Chinese to devalue in order to become more competitive. This also signals to Southeast Asian countries that they must look for "moving" comparative advantages in market niches that China is less likely to be able to fill. The co-editors and their colleagues have provided an excellent book that focuses on the major policy issues and reforms although the book might have included a chapter on China's external economic policies including it long sought-after accession to the World Trade Organization (WTO). Some of the gaps that the book did not have space to cover are dealt with in this supplementary essay which is available from the East Asian Institute: China's Economy in 2002 and Outlookfor 2003. EAI Background Brief No. 143 (2003), by John Wong. The author's key observation is that China's 7.7 per cent average growth during 2001 and 2002 was fuelled by an export and foreign investment boom, and this phenomenon is likely to persist throughout 2003 and beyond. The key factor responsible for this is that China's leaders across the generations have reached a broad consensus on sound major economic policy directions but important reforms continue to be required. The volume is well written, thoroughly researched, and pertinent to understanding contemporary China. It will be of particular interest to university students and teachers as well as public officials whose intellectual attention is drawn to China. The book also provides an excellent foundation from which a novice on the topic can gain more knowledge about the Chinese economy. ROBERT L. CURRY, JR. California State University, Sacramento Globalization and SMEs in East Asia. Edited by Charles Harvie and Boon-Chye Lee. Cheltenham, UK: Edward Elgar, 2002. Pp. 318. The title of this book highlight three key terms: Globalization, small and medium enterprises (SMEs), and East Asia, and my review of the book will be framed around these three key terms. In reading the book, we may want to ask three questions. By globalization, is the book examining the effort of SMEs to internationalize or the impact of globalization on SMEs? In my opinion, the chapters in the book touched upon both. What are the definitions of SMEs in East Asia or in specific countries covered? We can see some loose definitions of SMEs here and there among the chapters, mostly when the authors discussed SME activities in a specific country, but there seems to be no attempt by any of the authors to provide an over-arching definition of SMEs in the context of East Asia. It may be an impossible task. If so, readers need to be aware of the fact mat the very different nature of SMEs in the various countries may make generalization of any findings difficult. Lastly, where does East Asia cover as a region? The book adapted a very loose definition; while authors in different chapters focus their discussions on countries they have data on to facilitate the discussion (for example Chapter 4). Here again, readers may just need to be careful with some of the generalization drawn — situation in Indonesia (which is the focal country of discussion in a few chapters) cannot be taken as representative of Asia. The aforementioned notwithstanding, the contribution of the book in facilitating an understanding of SMEs in the Asia-Pacific region ASEAN Economic Bulletin 189 Vol.20, No. 2, August 2003 at a macro level cannot be denied. It also contains substantial amount of analysis and assessment on the impact of the 1997 Asian crisis on SMEs in the region. In Chapter 1 the...