Asian leaders face fast-rising inflation, strong currencies and unwanted influxes of capital. But behind these they face a more profound choice. Either they pursue the consumption-fuelled capitalism that has driven world growth in recent decades. Or they can take a deep breath, change direction and find a sustainable new path.
Under the orthodoxy that held sway until the financial crisis, Asia had no options. Intellectually subservient to the west, it followed the consensus of freer markets and smaller states. But if this continues, the region will face a bleak future of unbalanced export-dominated growth, food and water shortages, and major environmental degradation.
On the face of it, it seems as if most Asian nations are still emulating this western model. But the truth is more complex. Governments are waking up to the social and environmental consequences of their growth. The dilemma now is what to do about it, while retaining power – be that in democratic India, or one-party China.