During the past decade, Southeast Asia has achieved remarkable e-conomic growth. However, since July 1997. Thailand has suffered a banking and financial crisis which has spread to almost the entire East Asian region. In addition to reflecting some fundamental economic problems such as a huge trade deficit and foreign debts, the crisis mainly highlights the failure of the East Asian model of national industrial policy or neo-mercantilism. Another implication of the financial crisis is that the rules of the game in the international financial and economic systems will probably be changed so as to find an equilibrium between "have" and ''have-not" nations. Finally, the crisis will definitely influence the future East Asian and global economic landscape.