Many East Asian nations look to the New Economy as a possible cure for their recent economic ills, but they are short of good prescriptions. The term was coined to describe the decade-long economic expansion in the United States that was hard to explain on the basis of old economic theories. Lack of theories has led people to believe in its verity because of the conspicuous changes that information technology has brought to the business world and to society at large. Nowadays IT is widely acknowledged as the major engine of the New Economy.