What Asia Needs
BANKRUPTCIES AND MERGERS
Politicians are protecting well-connected companies and industry sectors deemed vital to national prestige. They should allow failures and acquisitions to end wasteful spending.
A TOUGH IMF
The global fund should insist that Thailand and Indonesia shelve pet projects and balance budgets.
BETTER BANKS
Hundreds of banks and finance companies in the region do little more than funnel capital to dubious projects. They need to be shut down and replaced by a handful of strong, well-capitalized banks.
TRANSPARENCY AND ENFORCED REGULATIONS
Even the central banks don't know the extent of the debt crisis, because of lax accounting and poor regulation. Companies need to observe international accounting standards to attract new foreign capital.
OPEN MARKETS
Outsiders should have the right to acquire local companies. Tariffs should be dropped for protected industries. Capital flows should stay open to promote confidence.
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