Asian Crises 1997 - aaa PDF

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The documentary began with Thailand receiving a loan from the IMF. However, this action was not successful, making Thailand take another step. It was also denied. The U.S government saw it as a financial issue and not an overall strategic issue. As a result, the money bank began to pull out of the entire region, and it was known as “Contagion.” Due to globalization, Investors saw all the Asian countries connected. When they saw what was happing in Thailand, they also looked at the other emerging markets, and they assumed that as Thailand was going through a financial issue, the other countries would too. An example of currency depreciation was Malaysia. The currency was going down, hurting their economy. IMF agrees to loan money to Indonesia and other Asian countries with one condition. Cut government spending, raise the interest rate, stop corruption. The leaders came up with a new kind of colonialism to undermine the economies of all the ASEAN countries by destabilizing their currency. Consequently, the country would be poor, and then they would request help, gaining control over the policies of entry. To sum up The Asian crisis was a period of the economic recession that hit most countries in Asia in 1997. It began in the so-called Asian tigers, the group of emerging countries in Southeast Asia that, at the time, stood out for their great economic growth and development.

These countries changed their monetary policies that generated a strong devaluation of the currencies, creating a ripple effect in other countries, including outside Asia. The origin would have been Thailand, which now has a floating exchange rate. Malaysia and South Korea had a 10% decrease in GDP, the gross domestic product, the sum of everything produced by the country. On the other hand, Indonesia was even more affected and had a 15% reduction in GDP in that period. The 1997 Asian crisis was the first global financial crisis in the emerging world, already a more integrated world where people talk about contagion, the domino effect. And that's what stunned the whole world, as people weren't used to associating that something that happened in Thailand could knock on their door," The financial crisis in Asia has also affected Russia's finances. The country's president at the time, Boris Yeltsin, even dismissed the entire government. Not long after, the Russian ruble also collapsed —and shortly after that, the Russian Stock Exchange also went into recession, starting the otherwise known Russian crisis....