EastAsiainthe InformationEconomy Opportunitiesandchallenges Jamus Jerome Lim Jamus Jerome Lim is at the Regional Economic Studies Institute of Southeast Asian Studies, Pasir Panjang, Singapore. Keywords Information, Economy, East Asia, Information technology Abstract The Information Economy has captured the imagination of all levels of society. Yet very often, analyses tend to reflect personal biases or propose incredulous scenarios. This essay does not seek to rewrite old rules for a new economy; rather, it seeks to provide a balanced perspective on opportunities and challenges facing East Asia, using a multidisciplinary approach. It finds that although these countries differ in their levels of development in the Information Economy, their prospects of growth depend on the policies that they choose to pursue. Deliberations on economic issues such as the potential for productivity gains from ICT), political concerns including the need to cope with changing government-people dynamics), and social changes such as the diminution of local cultures and the widening digital divide) often involve both costs as well as benefits. The optimal balance is likely to differ between countries, with no clear model answers. Introduction The almighty NASDAQ, once held as the paragon of the Information Economy, is now languishing in a backlash of weary investors and spooked fund managers. Early hopes that this so-called New Economy would prove to be a malady for all forms of economic ills have largely been dashed, and the vociferous bull voices ± whether founded in ignorant optimism or sheer foolishness ± have mostly been silenced. Yet stock markets, like a wanton woman, are by nature fickle, and although valuations of Information Economy firms have firmly returned to palatable levels, they are by no means the true measure of the true potential of information and communications technologies ICT) and the information age that they herald. Indeed, even as the continued drama of the Information Economy continues to unfold, it has become possible ± in retrospect ± to make some early assessments on this information revolution. The reality of the situation is likely to fall between the extremes of limitless opportunity and impossible challenges. This essay seeks to mop away excessive hype and scepticism and to draw lessons from objective analysis, based on a multidisciplinary approach. The information economy landscape in East Asia The economies of East Asia are a unique as they are diverse. They range from those seeking to pursue the siren song of development to those whose levels of development rival the very best in the world; from economies that have embraced laissez-faire to those that are now in the throes of transition. In terms of their progress in embracing the Information Economy, however, the economies show a greater degree of convergence, albeit at different levels[1]. Information economy building blocks The backbone of the Information Economy rests upon telecommunications infrastructure ± without which the promise of interconnectivity and interactivity would be but an empty shell. In concert is the diffusion rate of personal computers PCs), the workhorse of Information Economy. Such building blocks are often the limiting factors that prevent the deployment of more advanced forms of ICT, such as the Internet. The telecoms infrastructure in East Asian nations ranges from moderate to high levels of development. Beyond The current issue and full text archive of this journal is available at http://www.emeraldinsight.com/1463-6697.htm info 4,5 2002, pp. 56-63, # MCBUPLimited,1463-6697,DOI10.1108/14636690210453226 56