The search for a regional identity in Asia against the rising tide of post-colonial 'Asian nationalism' has been a recurring theme in contemporary studies in international political economy. Region building in Asia has so far been patterned around and limited by state-centric cooperation. Recently I had the opportunity of attending a seminar, in Seoul, on capacity building through regional initiatives in the Asia-Pacific region, organized by the United Nations economic and social commission for Asia and the Pacific. The Asian economic crisis which erupted in 1997 has put severe strain on the east Asian 'tiger economies'. The Asian Wall Street Journal forecasts a steady but slow recovery for the Pacific rim but during the trip I could see anxiety about the future on the faces of my fellow Asians. Unemployment and the lack of social safety nets have been traumatic for many families. Seoul is a highly industrialized and Westernized metropolis. South Korea is a showcase of Western capitalism and 'trickle down' economics. Having embraced globalization with a peculiar gusto it has leapfrogged from poverty into becoming one of the most industralized economies of the world. South Korea's troubled past was torn between Sino-Japanese savage colonialism and a bloody civil war. But the country is finally coming to terms with it. Getting better The demilitarized zone on the border between the two Koreas is a tourist attraction and boasts of a world peace park. At the moment the South Korean economy is recovering from the crisis, although the reform of the large family-owned business conglomerates is still a long way. The director general, ministry of culture and tourism, our host, explained the various incentives given to foreign investors in South Korea under the foreign investment law. The South Korean government is making a paradigm shift from control and regulation to promotion and support. Under the new policy, complete autonomy is given to local governments and the institutional framework of investment has been liberalized by doing away with many of the pre-existing regulations considered obsolete. In the special foreign investment zones there is no corporate tax for the first seven years and 50 per cent exemption from local taxes for the first five years. Elsewhere in the Asia-Pacific, regional initiatives like the South Asian Association of Regional Cooperation and the Bangladesh, India, Myanmar, Sri Lanka, Thailand Economic Community have not progressed beyond the levels of rhetoric. The greater Mekong sub-region comprising China, Thailand, Vietnam, Cambodia, Laos and Myanmar shows some promise as a potential grouping. To regions, with love Meanwhile, the fiercely nationalist identities fuelled by jingoism are defying 'creeping regionalism' under myopic leaderships in many of these countries. ESCAP is pushing for regionalism through infrastructure projects - the Asian land transport development programme and the trans-Asian rail link connecting Asia with Europe through the southern corridor in the continent. The ASEAN, however, continues to be a success story - spurred by the Singapore-Batam-Johore growth triangle, increasing intra-ASEAN trade and the forthcoming United States-ASEAN summit. In Bangkok, my host informs me that the financial crisis has affected every Thai household. His limited income as a government official is unable to support the house mortgage with the real estate and the share markets dropping to record lows. To supplement the household income his wife has joined the direct marketing chain selling consumer products of Amway - the American way. As the plane takes off from Bangkok, where we had stopped, I reflect on the successes and failures of the Asian tiger economies. The financial crisis of 1997 has indeed taken its toll on the Asian capitals from Seoul to Jakarta. However, the 'Asian recipe' - export led growth, Confucian values and guided democracies - has been a success in many ways. Even crony capitalism has delivered the goods. Crony socialism, on the other hand, has failed. 'Guided democracies' have stood the test of time. Unfortunately for south Asia, misguided bureaucracies have failed. India is paying a high price for resisting globalization. The cost of this resistance might be much more than the cost of compliance.