...THE EAST ASIAN CRISIS Introduction: The East Asian crisis was a period of financial crisis that gripped much of Asia which beginning in July 1997 and raised fears of worldwide economic meltdown due to financial contagion.1 Several countries such as Malaysia, Thailand, Indonesia, the republic of Korea and the Philippines were hit directly while others such as Taiwan province of China, Singapore and especially Hong Kong, China were badly affected. What began as a speculative attack on the Thai baht in July 1997 quickly spread as ‘contagion’ to the other countries. Over a three-month period between July and October 1997, the baht fell nearly 40 per cent, the Malaysian ringgit and Philippine peso by about 27 per cent, the Indonesian rupiah by about 40 per cent and the Korean won approximately 35 per cent against the United States dollar. For countries that had been dubbed “miracle economies” this was a serious blow with wide-ranging economic, social and political ramifications.2 In this paper we would try to undertake an empirical analysis of the factors leading to the crisis by analysing on two major points: 1) How have these countries performed in the years leading to the crisis? 2) What was the policy response to the currency crisis and what similarities/differences were there in policy responses across countries? We try to do this by analysing the macroeconomic data of three countries, Malaysia, Thailand and the Republic of Korea, over a 13-year period, from 1990 to 2002. The...
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...East Asian Economic Crisis A large economic downturn in East Asia threatens to end its nearly 30 year run of high growth rates. The crisis has caused Asian currencies to fall 50-60%, stock markets to decline 40%, banks to close, and property values to drop. The crisis was brought on by currency devaluations, bad banking practices, high foreign debt,loose government regulation, and corruption. Due to East Asia's large impact on the world economy, the panic in Thailand, Indonesia, Korea, and other Asian countries has prompted other countries to worry about the affect on their own economies and offer aid to the financially troubled nations (Sanger 1). The East Asian crisis has affected almost all of the Asian nations, but the three hardest hit countries are Thailand, Indonesia, and South Korea. The panic began in Thailand in May of 1997 when speculators, worried about Thailand's slowing economy, exces sive debt, and political instability devalued the baht as they fled for market-driven currencies like the American dollar. Indonesia's economy soon fell soon after when the rupiah hit a record low against the U.S. dollar. Indonesia is plagued by more than $70 billion worth of bad debts and a corrupt and inefficient government. Thailand and Indonesia also suffer from being overbuilt during real estate booms that Reven2 were the result of huge influxes of cash by optimistic foreign investors. South Korea faltered under the weight of its huge foreign debt...
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...Content 1.Introduction 2 2. Papers 3 2.1 Selecting Paper 3 2.1.1 Shuan Paper 4 2.1.2 Mien Paper 4 2.1.3 Mao Bien Paper 4 3. Brush 5 3.1 Correct Way of Holding a Calligraphy Brush 6 3.2 Basic Chinese Calligraphy Brush Theories 6 3.3 Basic Brush techniques for Chinese Calligraphy 7 4. Ink Stick 8 4.1 Production 8 5. Ink Stones 9 5.1 Four Famous Ink Stone ...
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...2. To what did the Latin religio refer? 3. Taoism and Confucianism are nontheistic religions, that is, religions for which belief in God or gods is nonessential. While gods are not alien to either Taoism or Confucianism, belief gods is not central to either tradition. What are a couple of other religions that can be called nontheistic religions? 4. What is Paul Tillich's definition for religion, and why do Hopfe and Woodward consider its development too broad? Theories of the Origin of Religions, pp. 5-9 5. Explain E. B. Tylor's theory concerning the origin and evolution of religion. What is animism, and to what, "ultimately" and "finally," did Tylor think it evolved? 6. To what does the term "mana" refer? 7. Explain Max Müller's theory concerning the origin and evolution of religion. 8. How does Wilhelm Schmidt's theory differ most from those of Müller and Tylor (hint : the answer has something to do with which came first, monotheism or polytheism)? 9. Explain Sir James Frazer's theory concerning the origin and evolution of religion. 10. According to Ludwig Feuerbach, who created whom? 11. For Karl Marx religion consisted of the idea of heaven, so what did Marx mean when he wrote that religion, or the idea of heaven, "is the opium [a pain killer] of the [oppressed] people"? 12. Sigmund Freud argues that "the younger males" who "joined together in killing" their father experienced enough...
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...out why they have these “religions” and why they believe in so many different things. Finding this out may be the key to figuring out the core of these people. As I traveled over the many land masses of this planet my first stop was the dry Middle East where the dominant religion was Islam. These people call themselves Muslim. They do not eat the meat that comes from the pig because they considered it dirty. They pray 5 times a day facing the east towards Mecca. I spoke with some of these people and they said they found peace when they prayed 5 times a day. Their faith was something that got them through the tough and happy times of life. My next stop was in Israel where many people there practiced Judaism. They believe like the Muslims that there is only God and pray to him directly. Judaism focuses on the relationships between the Creator, mankind, and the land of Israel. They also have dietary religion views on food like meat that has to be Kosher. They also believe that their faith helped keep them grounded and reminded them to always be grateful for God blessings. My next stop was to Asia where there are many types of religions practiced there in the West they practice Christianity, but in the east they practice East Asian religions, also called Taoic religions, which are Confucianism, Shinto, and Taoism. (Placeholder1) These three religions are based on teachings they are locally...
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...Wesley Kivett World Religions December 11, 2011, Darin Metz Seeking the Highest Good Breaking down the religions of this world has been a task of mankind for centuries. Theologians and Philosophers have studied the very core of many world religions trying to find the similarities between the religions. Debates and many of hours have been put into this research trying to find out who is right and who is wrong. When we look at three of the leading religions of the world, Taoism, Confucianism, and Christianity there are similarities and differences between them, but the meaning in which they are taught are very different. Since the beginning of time mankind has always been seeking for a greater understanding of life and what our purpose is here on earth. Many have written books on how to find the meaning of life and how to focus on your purpose, or could we say, seeking a higher good. As we look at these three religions it is difficult to even begin to see how three religions that are so far apart can find common ground. Taking each one of them individually and trying to pinpoint their relationships can be very challenging. Lao-Tsu (570-490 B.C.) wrote the following on the highest good in his Tao Te Ching: "The highest good is like water. Water gives life to the ten thousand things and does not strive. It flows in places men reject and so is like the Tao. In dwelling, be close to the land. In meditation, go deep in the heart. In dealing with others, be gentle...
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...COGNITIVE ORGANIZATION AND IDENTITY MAINTENANCE IN MULTICULTURAL TEAMS A Discourse Analysis of Decision-Making Meetings Jolanta Aritz Robyn C. Walker University of Southern California Measuring culture is a central issue in international management research and has been traditionally accomplished using indices of cultural values. Although a number of researchers have attempted to identify measures to account for the core elements of culture, there is no consensus on those measures. This article uses an alternative method—discourse analysis—to observe what actually occurs in terms of communication practices in intercultural decision-making meetings, specifically those involving U.S.-born native English speakers and participants from East Asian countries. Previous discourse studies in this area suggest that differences in communication practices may be attributed to power differentials or language competence. Our findings suggest that the conversation style differences we observed might be attributed to intergroup identity issues instead. Keywords: intercultural communication; intercultural communication; group communication; discourse analysis; intercultural management; group decision making; communication accommodation theory In an increasingly global economy, multicultural work teams are becoming more commonplace, and fostering teamwork in multicultural teams is a growing challenge. The growing body of intercultural research suggests important Jolanta Aritz is an Associate...
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... 1 Asian Contagion 1 Emerging Market Crises 3 Meltdown in Thailand 7 The International Monetary Fund 9 Implication for Business 11 Malaysia 13 Preventing and Managing Future Crises 14 Conclusion 16 References 18 Introduction Asian Contagion In March 1997 Asia faced a serious crisis in financial sector. This concern was started from Thailand and has spread to a lot of countries in Asia. Obviously it affected to those countries in economy situation such as currency value. Also called the "Asian Contagion", this was a series of currency devaluations and other events that spread through many Asian markets beginning in the summer of 1997. The currency markets first failed...
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...Consequences of the Asian Financial Crisis,” in Gregory W. Noble and John Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance, ed., Cambridge, 2000, pp. 1-35 [pic] Summary: The Asian financial crisis resulted from the sudden flight of large amounts of capital from Asian countries that lacked adequate systems of prudential regulation, and whose foreign exchange rate proved disastrously brittle. The crisis was unique in its unprecedented severity of corporate distress and banking sector problems, and its quickness in recovery from the crisis. While technical improvements in the financial system were institutionalized, the crisis did not bring fundamental structural revisions, in both political and economic arena. Doughty resistance from entrenched ideologies and interests in the U.S, the U.K, and the IMF prevented the reforms and rearrangements in the international financial system from happening. ➢ The East Asian crisis---the severest jolt to the world economy since the Oil Shock in early 1980s. ➢ Asian Crisis ---spread from Thailand to Indonesia, the Philippines, Malaysia and Korea. Sequences---Export decline ( loss of investors’ confidence( Currency devaluation due to lack of foreign reserve( IMF emergency fund requiring tight budget and monetary policy( increase in non-performing loans and damage in domestic industries ➢ Drastic increase in international private capital inflow in the ‘90s was key to understand this crisis. Liberalization...
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...Journal of Contemporary Eastern Asia ISSN 2383-9449 Fumitaka Furuoka, Beatrice Lim, Catherine Jikunan and Lo May Chiun (2012) Economics Crisis and Response: Case Study of Malaysia’s Responses to Asian Financial Crisis Journal of Contemporary Eastern Asia Vol. 11, No. 1: 43-56 Journal abbreviation: J. Contemp. East. Asia Stable URL: http://eastasia.yu.ac.kr/documents/Fumitaka_11_1.pdf www.JCEA-Online.net Open Access Publication Creative Commons License Deed Attribution-No Derivative Works 3.0 Journal of Contemporary Eastern Asia, Volume 11, No.1: 43-56 http://dx.doi.org/10.17477/jcea.2012.11.1.043 Economics Crisis and Response: Case Study of Malaysia’s Responses to Asian Financial Crisis Fumitaka Furuoka, Beatrice Lim, Catherine Jikunan and Lo May Chiun The paper chooses the “Asian Financial Crisis” as a case study to examine its impact on Malaysian economy and describes how Malaysian government responded to the crisis. It also focuses on the Asian financial crisis’ impact on the employment of banking sector in Malaysia. In the finance, insurance, real estate and business service sector, a number of 6,596 workers were retrenched. Banks were forced into mergers and acquisition as well as downsizing, trim lean, organizational changes and introduction of new technologies. Excess workers were offered a “voluntary separation scheme.” These retrenched workers became the urban poor facing high cost of living and no opportunity for jobs as there is no safety net provided. 1. Introduction...
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...INDONESIA: The Causes, Effects and Lessons of the 1997 East Asian Financial Crisis by Zara Ahmed Julia Dreier Frank Ro April 9, 2007 FSPP 556: Macroeconomics Professor Kathryn Dominguez [pic] Introduction Following its independence in 1945, the Indonesia economy deteriorated drastically as a result of political instability, a young inexperienced government, and ill-disciplined economic nationalism. However, the New Order administration in the 1960s, brought about a new degree of discipline to economic policy that quickly brought inflation down, managed foreign debt, but more importantly, attracted foreign investment through financial liberalization. As massive inflows of foreign investment poured into the country, problems soon arose with regulation and oversight. These structural weaknesses created instability and ultimately multiplied the effects of the Asian Financial Crisis in 1997. With strong encouragement of the IMF, Indonesia adopted a set of policies to protect currency values and penalize insolvent companies, in order to restore investor and creditor confidence in the country. Despite assistance from the International Monetary Fund, the Crisis devastated the Indonesian economy and brought on massive social unrest. This paper consists of six parts. We intend to analyze pre, during, and post-crisis trends utilizing such macroeconomic models as the Mundell-Fleming model, the IS-LM model, and the open economy model for calculating...
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...Role of the International Monetary Funds (IMF) in the East Asian Debt Crisis of 1997 By Yaro Sadek Tahirou Minnesota State University, Mankato 2 ABSTRACT During the East Asian Financial crisis in particular, the IMF has been criticized of promoting international cooperation because of the supervised enforcement of its rules. The purpose of this research is to find out how the IMF responded to the East Asian debt crisis and whether or not its responses were the best possible responses to this crisis. Through my research, I talked about the causes of the East Asian financial crisis, the role of the IMF in the international monetary system, and if the IMF responses to Thailand, South Korea and Indonesia were the best responses or not. After analyzing the IMF responses in this crisis, I found that the IMF policies need to be reformed in order to monitor and prevent future financial crises spill-over effects at the global and regional levels. I will analyzed 5 scholarly journals on the financial crisis in East Asia, 3 scholarly articles on the role of IMF in the East Asia financial crisis, and 1 novel called POLITICS IN SOUTHEAST ASIA DEMOCRACY OR LESS by William Case. INTRODUCTION Several financial crises have occurred in the world economy through the last decades. Some examples include the East Asian financial Crisis of 1997, the Latin American debt crisis of 1994-95, the Russian crisis of 1998, and the Brazilian crisis of 1998-99 which spread out to other areas also known...
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...Summary This paper analyses the factors which led to the economic crisis which faced Indonesia in 1997, which in turn led to Indonesia making major reforms in government as well as in every other sector. It also looks at the major factors that also have to be improved even though major reforms have swept the nation. The policy of decentralisation, although done for the better, has its drawbacks which can hurt Indonesia in the long run. Contents - Executive Summary 2 -Acknowledgements 3 -Introduction To The Topic 3 -Background Literature Survey 4 -Observations 8 -Conclusions and Recommendations For Future Studies 9 -Appendix/Bibliography/References 10 Acknowledgements I would like to thank Prof. Perrie, for initiating this project and letting us choose suitable topics to analyse. Introduction to topic Indonesia is a country with around 240 million people. From being one of the worst hit countries of the Asian financial crisis of 1997-1998 it has become one of the largest countries in the South East Asia in terms of Economy. With a population so big and also a diverse ethnic culture to keep in mind the reforms which were propagated after the financial crisis has been largely the decentralisation of the Government. Background...
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...Impact of the Asian Financial Crisis in 1997 and effect to Latin America Name: Institution: Date: Abstract In 1997, the Asian Financial Crisis spread rapidly all over the Asia and affected almost all the economies in the world. Prior to the Asian Financial Crisis, the Asian countries such as Thailand, Malaysia, South Korea, Indonesia, Hong Kong and Singapore experienced a remarkable growth in the economy that was considered the highest in the world. These Asian economies increased by a notable proportion of 6 to 10 percent annually in the GDP. However, what had been regarded as an Asian miracle seemed to crumple down rapidly 1997 when these Asian countries were faced with a severe financial crisis in their local stock and currency markets. When the economies started recovering from the crisis in 1998, the stock markets in several countries had considerably lost more than 70 percent of their worth, while their currencies depreciated in comparison to the US dollar (Pettis, 2001). The Asian Financial Crisis also affected several nations in the Latin America as they experienced a relentless economic meltdown that had detrimental effects to the economies. For instance, the financial crisis force multinational firms to close down due to liquidation, the banking system deteriorated and this forced high levels of lay-offs leading to unemployment. In addition, the financial crisis resulted in the loss of the people’s purchasing power in the Latin American while nations turned to...
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...financial crisis has highlighted its flexibility. This flexibility, in part, arises from transformations undertaken in response to the Asian financial crisis a decade earlier.” Student Name: Eric Rodrigues Student Name: Mehmet Edib Unal Introduction The Asian Financial Crisis occurred during the year 1997-1998, and is explained well in brief by Galina Hale “East Asian countries experienced severe banking crises. Nonperforming loan ratios skyrocketed because of prior excessive risk taking and most banks had to be recapitalized by their governments.” (Hale 2011, p.3) After ten years, The Asian Financial Crisis was followed by The Global Financial Crisis in 2008. “The precise genesis of the global crisis remains subject to debate. (Lin 2012, Treichel 2012, p.3) “We will argue that global imbalances were the result of the large excess demand in the U.S. over an extended period—the financing of which was made possible by the reserve currency status of the US dollar. “This excess demand resulted from both the public debt” and “the overconsumption by households.” (Lin 2012, Treichel 2012, p.3) “As shock waves of the global financial crisis (GFC) reached East Asia in autumn 2008 immediately after the collapse of Lehman Brothers in September, the region faced the task of evaluating and reassessing the economic cooperation efforts of the previous ten years” (Katada 2011, p.274) Thus by evaluating and reassessing the economic cooperation of those previous ten years East Asia was...
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