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Economic growth in Southeast Asia slowed down in 2011 after the sharp recovery in 2010 from the global financial and economic crisis of 20089. A cooling down was particularly evident in the second half of the year. There was considerable uncertainty about how the European crisis would unfold, the prospects of a U.S. recovery, how much China would decelerate, and the future of oil prices. In the political arena, the changes in Myanmar were the most striking. Reforms enacted during the elected government's first year in office under the new constitution exceeded the expectations of most observers. Less media grabbing, but still important, was the Singapore general election in May. It signified a more open and competitive political environment and more vigorous debate of government policies. There was little change in the political openness (or lack of it) in other countries in the region. The general election in Thailand made no difference to the continuing political polarization in the country. Indonesia was generally stable and attracted more attention as an investment destination. However, good growth rates masked continuing economic weaknesses and failure to protect religious minorities was also a troubling blemish. Democracy is not yet entrenched in strong
Southeast Asian Affairs – Institute of Southeast Asian Studies
Published: Sep 7, 2012
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