The article looks at the differences in the economic models of East Asian countries. Hong Kong operates a currency board and the country also has a highly flexible prices and wages. Its banking system is another strength of Hong Kong, with banks having a capital adequacy ratios of 15% to 20%. Singapore's economy, on the other hand, is relatively free and open despite government intervention. The small domestic market of Singapore, however, is its weakness. The industrial policies of Taiwan are more flexible compared to South Korea. Taiwan has a large foreign exchange reserves, a current account surplus, little foreign borrowing and a healthy banking sector. South Korea, meanwhile, is dominated by chaebols, which makes it the most controlled and distorted economy.