We are pleased to present the twenty-fifth issue of Southeast Asian Affairs, a comprehensive annual report on the political and economic trends and developments in Southeast Asia.

Designed to be easily readable yet in-depth, informative and analytical, the annual has come to be a standard reference for scholars, policy-makers, private sector executives and journalists, who seek to understand and keep up to date on the dynamics of Southeast Asian developments.

Completing ASEAN's historic task of uniting all countries in Southeast Asia was the initial problem addressed by regional leaders in 1997, an objective frustrated at the eleventh hour by the renewal of armed violence in Cambodia. The civil war in Cambodia, and other consequences of enlargement, continued to engage ASEAN, but quickly subsided in importance following the devaluation of the Thai baht on 2 July, which triggered the regional financial crisis. These events, together with the smoke-haze problem and the El Nino–induced drought, dampened celebration of ASEAN's 30th anniversary. Apart from Cambodia, domestic politics generally remained stable. Governing parties were returned in elections in Singapore and Indonesia, and a change of government in Thailand followed the prescribed democratic process. By year end, however, the economic and social effects of the financial crisis were also pressuring regional governments.

I take this opportunity to thank all the authors who have contributed much to make this publication possible. While the Institute encourages the statement of all points of view in the publication, the authors alone are responsible for the facts and opinions expressed in their articles. Their contributions and interpretations do not necessarily reflect the views of the Institute.