By Khun Seiha, 2012
In Asian country there are many countries which are most powerful economic and some of those countries were named as “The Asian Miracle” and other countries are named as tiger of Asia. As you see over previous decade some countries such as Singapore, Thailand, Indonesia, South Korea, and Malaysia were named as the high economic growth in the world. Singapore‘s economic grown highly about 10% in 1990 to 1993 and up to 16% of GDP in 1994 to 1996. In Thailand, there was over 6% of GDP increase each year in 1990s and up to 9%of GDP in 1995 to 1996. In Indonesia, there was over 4% of GDP in 1992 to 1991 and between 1995 and 1996 is 3% to 4%. In South Korea, the current economic growth was 1-3% of GDP in early 1990s and until 1996 the Korea economic increased up to 6%of GDP in 1996. In Malaysia, there was 6% of GDP during 1990s and increased up to 9% of GDP during 1995-1996. However, there was a crisis happen in 1997 which called Asian Financial Crisis. What is Asian Financial Crisis? Only a short time those countries had problem with financial crisis, that why our group choose this topic to discus and take it as writing assignment. In addition, we choose this topic in order to know what causes that bring to financial crisis, to find out what difficulty did those countries meet during crisis time, by doing this research is to learn and get experience to avoid this situation in case it happens next generation. What is Asian Financial Crisis? How this crisis happened? Moreover, we will explain how those countries (Thailand, Singapore, South Korea, Malaysia and Indonesia) response to this problem and find out the strategy that they use to deal with. The end we will show what were the implications and lessons that we learn from the Asian financial crisis 1997? In this paper, we will show three parts. First part we show the introduction which include that reason that we chose this topic, goal and objective, and general information about this financial crisis. In the second part which is body of the paper will show all reasons that make Asian Financial Crisis happened. In those reasons, we will study detail and find out any relation problems. Along with this we study detail in each countries and the solution. After that, we will show the implements that are happened by this crisis and lessons learnt which could be our experience for next times. In the third part we will show inclusion and our group comment. Asian financial crisis was the third regional crisis after the first crisis in Europe 1992-1993, and the second crisis was in Latin America-1995, so it was not relate only local region. This crisis was involved with the world economic, so it is very important that we must know all the causes and events happened during that time. We hope that, this paper will give us or other people know, understand, and gain experiences. The next paragraph will show all information about that. II, 1. Causes
The Asian financial crisis in 1997 was largely unexpected and was driven by drastic falls in asset prices and currency values in many countries at the same time. Many expertise models have been worked to predict the event which likely to develop into crisis. However, this sample performance was completely failed; then the financial issues had developed itself into crisis. The two most visible evidences which characterized the financial crisis were a drastic fall of currency value and traded equity price. As the matter of fact, the event that was the announcement of the Thai baht floating had appealed to trigger the crisis in Asia. As a result, Thai baht had effectively devaluated by 20%, while Malaysia, Philippines, Indonesia, and South Korea gave up their currency defense soon after the event. Moreover, even Singapore as well as Taiwan could not defend their currency value apart from Hong Kong. All of these countries stock markets plummeted dramatically. Then this cancer spread like contagious disease...
References: Marshal, J.C (1997). The role and function of IMF in Asian financial crisis.
Sonh, I. Asian financial corporation: The problem of global legitimacy in global finance government. Global Government 11 (2005), 487-504.
Woo, W.T. (1998). Lesson From Asian Financial Crisis, and Prospect for Resuming High Growth. University of California: Davis
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