4 SOCIAL SCIENTIST has resulted in major structural shifts in the commodity composition of output, in the employment profile and in the sources and distribution of incomes and consumption patterns. Those shifts in turn entail the reemergence of problems with regard to food security and of unemployment, which characterize large developing market-economy countries, and which China had managed to overcome during her years of collective agricultural production. Many of these tendencies can be analyzed as part of a pattern which applies over the East and Southeast Asian region as a whole. Sunanda Sen looks at the growth performance of three countries-Indonesia, Malaysia and Thai-land-with the focus on their relation to global developments with regard da^ital flows. Her major conclusion is that success was crucially related to State surveillance of the process of integration with the world system. While it is true that these countries were the principal beneficiaries of the redirection of FDI and portfolio flows to developing countries, the opening up of the financial sector that both stimulated such flows as well as partly resulted from them, has substantially increased the financial fragility of these countries and is challenging the sustainability of their high growth trajectories. Finally, C.P. Chandrasekhar assesses the view that globalization has reduced external vulnerability and rendered irrelevant the premises underlying the interventionist industrialization strategies pursued by most developing countries during the three decades after World War II. Not only does the evidence point to persisting and increasing vulnerability, but it also suggests that the proclaimed benefits of globalization have not been realised in most developing countries. Hence, though the new context warrants a change in industrial strategy relative to that pursued in the less integrated world of the 1950s, the prerequisites it sets requires the presence of the developmentalist state as a major player from the point of view of growth, and not just equity, in the developing world. C.P. CHANDRASEKHAR