Title: Fiscal sustainability in selected developing ASEAN economies

Authors: Ramkishen S. Rajan; Khee Giap Tan; Kong Yam Tan

Addresses: Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore, 469C Bukit Timah Road, 259772, Singapore ' Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore, 469C Bukit Timah Road, 259772, Singapore ' Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore, 469C Bukit Timah Road, 259772, Singapore

Abstract: This paper undertakes an examination of the fiscal sustainability challenges confronting four developing ASEAN economies since the Asian financial crisis (AFC), namely Malaysia, Thailand, the Philippines and Vietnam. The recovery of these economies since the AFC was marked by impressive fiscal consolidation along with robust growth rates till the global financial crisis struck in 2007. In addition to a case study analysis, the paper provides computations of fiscal sustainability to assess the degree of fiscal space of the four selected developing ASEAN economies. Despite the fact that our fiscal sustainability computations reveal that the developing ASEAN economies have fiscal space, it is important to keep in mind the potential dangers of contingent liabilities that appear to be building up in these economies.

Keywords: emerging economies; ASEAN economies; fiscal sustainability; fiscal space; contingent liabilities; sustainable development; Asian financial crisis; Malaysia; Thailand; Philippines; Vietnam; economic recovery; fiscal consolidation; global financial crisis.

DOI: 10.1504/IJPP.2015.070566

International Journal of Public Policy, 2015 Vol.11 No.4/5/6, pp.186 - 203

Received: 25 Jun 2014
Accepted: 09 Jan 2015
Published online: 10 Jul 2015 *

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