This book, a comparative study of the Philippines and Thailand, breaks new ground by highlighting the impact of non-economic institutions and cultural, kinship, and political values on economic performance.

The Philippines and Thailand, two developing South-East Asian countries which faced similar situations and problems after the Pacific War, pursued divergent paths in shaping their destiny. The results have been dramatic, especially when we consider that postwar, the Philippines' per capita GNP was twice that of Thailand's, but by the end of the period under study, the position had reversed.

In examining the factors that influenced this transformation, the author elucidates the response of both countries to the economic dominance of the Chinese minority and their attitude towards foreign investment. He analyses their government's intervention in the market economy, including a discussion of the traditions of their central banks and the role played by their military establishments.

He also focuses on their handling of peace and order; issues include the Communist insurgency, Muslim separatism, military coups, and serious crime, culminating in a discourse on traditional values.