Economic Success and Ramifications in ASEAN 5
The ASEAN 5 countries experienced an annual GDP growth close to 8% before the 1997 crisis, with low inflation and unemployment rates. However, the crisis resulted in negative ramifications such as environmental degradation, growing inequality, and corruption. Despite this, the majority of people's living standards were not erased.
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About Economic Success and Ramifications in ASEAN 5
PowerPoint presentation about 'Economic Success and Ramifications in ASEAN 5'. This presentation describes the topic on The ASEAN 5 countries experienced an annual GDP growth close to 8% before the 1997 crisis, with low inflation and unemployment rates. However, the crisis resulted in negative ramifications such as environmental degradation, growing inequality, and corruption. Despite this, the majority of people's living standards were not erased.. The key topics included in this slideshow are ASEAN 5, Economic Success, Annual GDP Growth, Ramifications, Environmental Degradation, Inequality, Corruption, Living Standards,. Download this presentation absolutely free.
Presentation Transcript
1. 1997 - 1998
2. Economic success Annual GDP growth in the ASEAN-5 (Indonesia, Malaysia, the Philippines, Singapore, and Thailand) averaged close to 8% over the decade before the crisis Almost half of total capital inflows to developing countries nearly $100 billion in 1996 inflation & unemployment rates both low
3. Ramifications Negative consequences Environmental degradation growing inequality between rich and poor rampant corruption social malaise Significant and real benefits great majority of the peoples living standard have not been erased by the crisis
4. Weaknesses in financial system inadequate financial sector supervision poor assessment and management of financial risk growth of bad loans state-directed lending relatively fixed exchange rates violent asset price cycles property boom bubbles
5. Weaknesses in financial system Large amounts of short-term international capital, denominated in foreign currency
6. Corruption Transparency Internationals 1999 survey of corruption Singapore 7th Malaysia 31st South Korea 50th Philippines 54th crisis countries Thailand 68th Indonesia 96th
7. Diary of the crisis: I
8. Diary of the crisis: II
9. The cause of capital outflows Bank failure in Thailand Corporate failure in Korea Political uncertainty due to the potential for a change in government in Korea, Thailand, the Philippines, and Indonesia net outflow of $105b from Thailand, Malaysia, South Korea, and the Philippines between 1996 and 1997
10. The cause of capital outflows Contagion effects hit Malaysia, the Philippines and Indonesia The IMFs intervention actually helped to incite panic
11. Causes of financial crisis macroeconomic imbalances structural deficiencies in financial sector loss of market confidence rising political risk
12. IMF's immediate response Help Indonesia, Korea, and Thailand arrange programs of economic stabilization and reform Approve IMF financial support for reform programs in Indonesia, Korea, and Thailand
13. IMFs immediate response Consult with other members that needed to take policy steps to ward off the contagion effect
15. Asian programs comprehensive reform of financial systems closure of unviable financial institutions associated write down of shareholders' capital recapitalization of undercapitalized institutions close supervision of weak institutions increased potential for foreign participation in domestic financial systems
16. Reforms in governance break the close links between business and governments ensure that the integration of the national economy with international financial markets is properly segmented
17. Real GDP Growth (%)
18. Inflation rate (%)
19. GDP growth rate (%)
20. Impact on Japan
21. Impact on World
22. Three schools of thought
23. Three schools of thought Revisionist: developmental state Market must be mediated, regulated and guided by the state Culturalist Asian values Culture context of East Asia explains the miracle
24. Recovery from the Crisis
25. Lessons from the Crisis Better information Regulation and restraint Controlling capital flows
26. International Organizations Authority vis--vis sovereign governments Access to information Risk of ``creating a crisis Globalization and interdependence
