Asian Drama Revisited: Myrdal’s Insight in the Development of Southeast Asia

Abstract

Gunner Myrdal’s Asian Drama was the first serious and somewhat pessimistic study on the postcolonial development prospects of newly independent Asian countries. Since the world is in the grips of covid-19 pandemic and facing disrupted global supply chains, it is worth reflecting on the Asian Drama and rediscovering some of its insights. The rapid growth of Southeast Asian countries at the beginning of the twenty-first century may have proved Myrdal’s pessimistic outlook wrong, but his concern over the balance between state and market is still valid as it informs countries in the region that they should be more cautious in pursuing their current industrial policies. This is more so when Keynesian foresight is married to Myrdal’s forecast of development and economic growth, the precariousness of Southeast Asia’s development prospects post-pandemic is more pronounced.