The paper explains theoretically that the present economic problems of less developed countries in Southeast Asia and elsewhere in the world are the direct offsprings of the inefficiency of their industries, disabling them effectively to compete in the world market. Globalization simply exposed this inefficiency. The sharp depreciation of these countries' currencies is merely a consequence of such inefficiency. Thus, these countries' problems are not financial in nature but a real sector phenomenon and as such the "solution" should be trained on the real sector, the study concludes.
