Asian Economic Development
The following paper examines why economists predict that although the crisis in East and Southeast Asia has slowed the rate of development, it is not likely to change the ultimate direction of market evolution.
This paper discusses the current state of Asian economic development; the principles upon which Asian economic recovery depends, and then compares and contrasts several countries, notably China and Japan, in view of their attitudes, development and potential for economic dominance in the region.
“In 1997, Thailand floated the baht, marking the beginning of a currency crisis that would eventually spread to other parts of Asia and to emerging markets such as Brazil and Russia. In Asia, the outflow of investment was massive. The five hardest hit economies — South Korea, Indonesia, Malaysia, Thailand and the Philippines — saw net capital flows reverse by more than $100 billion in a year. All over Asia, companies went bankrupt, banks loans soured and the number of property repossessions skyrocketed and millions of people lost their jobs. The situation, named the “Asian flu” quickly became the focal point of numerous conferences, editorials and a small library of books as economists and academics debated the causes and the cures.”