Asian economic crises: What were the causes and consequences? To what extent does their occurrence relate to globalization?

The Asiatic economic market was seen as a triumph in terms of rank of growth and gains in support standards. Their remarkable achievement in sustaining a blue rate of economic growth over a long cessation was significantly fostered by their active participation in the globalization process. This enabled them to take advantage of the increasing opportunities for using trade as an engine of growth and for accessing external capital and technology. In approximately all Asian countries, the export centre was the main growth engine, although the governments role in promoting specific industrial and export policies wide-ranging across the region.

Growth continued largely unabated during the early 1990s, during which period it was fuelled by significant inflows of capital, especially from Europe and Japan. However, hints of weaknesses began to emerge towards the mid-1990s. In many Asian countries, signs that the economies were exceeding their capacity, and thereby overheating, became evident; utmost levels of short-term foreign debts accumulated; corporations became highly leveraged and export levels started to drop.

With the Asian economy receiving much praise what actually went wrong? post of the answer seems to be that the countries within the Asia pacific became victims of their own success. The high rate of growth had led domestic and foreign investors neglecting the Asian countries economic weaknesses.

It wasnt until the second half of 1997, several East and south-east Asian economies fell victim to some of the pitfalls associated with closer integrating into the international economy. The most seriously affected, albeit with varying degrees of severity, were Thailand, Indonesia, Malaysia, the Philippines, and the Republic of Korea. tercet of these (Indonesia, the Republic of Korea and Thailand) were forced to seek emergency assistance from IMF.

Thailand undergo some currency problems which quickly developed into a fiscal and economic crisis and spread to...

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