Rapid Modernization of Military Hardware
According to one estimate, the arms spending of the six-member Association of Southeast Asian Nations increased more than 77 percent in 1993 to US$11.5 billion, compared with US$6.6 billion in 1980-1981. There seemed to be a competition among some of the more affluent states in getting the latest and most powerful weaponry. As a result, the variety of weapon system acquired went beyond the traditional types generally used for insurgency.
B. IMPACT OF RECENT FINANCIAL CRISIS ON REGIONAL SECURITY
1. Economic Instability
Since the economic crisis of 1997 began with the financial sector and foreign exchange rate, the impact of the crisis was much more far-reaching than any crisis in manufacturing or trade. The tightening of cash flow and devaluation of Asian currencies affected not only the poorly managed enterprises but also many healthy industries. In fact, the more promising an enterprise was, the more likely it was enticed into borrowing and ambitious expansion during the bloom years and the more it would be affected by the financial crunch. Thus, the damages done to the Asian economies are more devastating than they would have appeared on the surface. Although some argued that the economic crisis was a blessing in disguise, it will take at least three to five years for the Asian economies to recover. Some countries would suffer a period of economic instability, which if ill managed may easily lead, to an economic meltdown and chaos. Trade and economic liberalization also suffer a backlash as people in the region rethink the benefits and drawbacks of globalization.
2. Political Instability
As mentioned earlier, one of the pillars of regional security was the robust economic growth extending throughout the most part of the Asia Pacific. And indeed, the recent economic crisis has had a great reverse effect on regional security. Ethnic and religious conflicts and violence returned with a vengeance. Growing gaps between the rich and the poor, the urban and the rural, the powerful and the powerless reappeared in high contrast against the backdrop of the economic crisis and its aftermath. Much corruption and cronyism surfaced during the financial investigation and some of the longest established political authorities in the region, such as President Suharto of Indonesia and Prime Minister Mahathir of Malaysia, were challenged. The hope for a peaceful and smooth transition from the old guards to the younger generation of the political leaders in these countries has been either dashed or threatened. Even if these countries can eventually overcome the current political crises, it will take a long time to re-established political consolidation, national reconciliation and social stability.
