Most crises are known by their origin, from the Mexican peso crisis of 1994/5 to the Asian crisis of 1997/8. Given there is no doubt who caused our world’s latest troubles, it should adopt its logical name: the western financial crisis. This reluctance to call a spade a spade reflects an inability to reckon with changes the US and Europe have to make to avoid a repeat. This worries the rest of the world, and Asia in particular – even if western leaders are shockingly unaware of how they are viewed.
Before this crisis Asian policymakers deferred towards their western counterparts. We assumed the west knew best on finance and economics. The enormous blunders since committed by the US and Europe mean deference has been replaced by disquiet. There is a simple reason why the west has not noticed: Asians are too polite. Sometimes it takes a relatively rude Asian, like me, to express our continent’s true feelings.
Fortunately, a few others have begun to speak out. Rakesh Mohan, the ex-deputy governor of the Reserve Bank of India, noted the “global financial crisis has had its roots in the US”. Andrew Sheng, chief adviser to the China Banking Regulatory Commission, strongly criticised US banks and regulators, saying: “When our teachers are no better than us, we really have to think for ourselves.” Top Chinese bank regulator Liu Mingkang has said of US financial reform that “after the death, the doctor came”.