The triumph of East Asia may be dazzling, but it’s foundations could easily be swept away. It is based on the continuing willingness of Western Europe and North America to provide a reasonably open market for exports from the region, the continiued importance of consumer electronics (and to some extent motor vehicles) in international trade, and a continiued guarantee of external security from the US. East Asian economies have structural weakness which need to be acknowledged. Among these are:
- The narrow product range of East Asian Exports. (Japan for example, is really a successful exporter in only two main areas, consumer electronics and motor vehicles)
- Heavy dependence on the North American markets
- Weak infrastructure
- Dependence on imported raw materials, including energy
- Failure of the education system to generate original research
- Failure to develop service exports
