The Asian Financial Crisis

Paper Summary:

This paper looks at a more neglected dimension of the Asian financial crisis: the role of political factors and the role of political-economic interaction in initiating the crisis, determining the depth of the crisis and shaping the recovery from the crisis. The paper explains that the Asian crisis was a global problem of large proportions; countries as far away as the United States felt the burden of the Asian problems with economic issues and political problems. The paper examines how politics played a vital role in the financial crisis due to money, politics and nepotism. The paper concludes that it will take a great deal of time before there is any real trust put into the governments and political systems of many of these countries.

Outline:
Introduction
Economic Determinants of Asian Financial Crises
The Role of Politics in Asian Financial Crises
Post Crises Recovery and Crises Management
Conclusion

From the Paper:

"Known as the G-7 several industrialized countries, specific countries have been supplying and controlling the flow of capital funds to third-world countries. These countries are the United States, Canada, France, Great Britain, Germany, Japan, and Australia. Because the G-7 group has such enormous and far-reaching economic strength, it can dictate and control the interest rate that the countries in its group charge to the nations that wish to borrow money. This is very significant for the third-world countries when they borrow money because they have little control over the rate of interest that they pay and they are not able to 'shop around' and find a better rate for their borrowing."

Sample of Sources Used:

• Aroskar, R. and P. E. Swanson. "The Asian Crisis and Market Efficiency: A Different Perspective." Global Business and Finance Review 7 (2002): 19-29.
• Bello, W & Rosenfeld, S. (1990). Dragons in Distress: Asia's Miracle Economies in Crisis, Penguin, London.
• Haggard, Stephan. (2000). The Political Economy of the Asian Financial Crisis, Washington, D.C.: Institute for International Economics.
• Higgott R. & Robison, R. (eds.). (1985). Southeast Asia: Essays in the Political Economy of Structural Change, Routledge & Kegan Paul, London.
• McLeod Ross H. & Garnaut, Ross. (1998). East Asia in Crisis from Being a Miracle to Needing One, Routledge. http://www.questia.com/library/book/east-asia-in-crisis-from-being-a-miracle-to-needing-one-by-ross-garnaut-ross-h-mcleod.jsp.

More papers on The Asian Financial Crisis :

• Cause and Effect Essay # 133287 : "The Asian Financial Crisis: Appropriate Remedies for the Next Time"
• Cause and Effect Essay # 2808 : "Causes of the Asian Financial Crisis"
• Essay # 51861 : "The Asian Financial Crisis"
• Analytical Essay # 130917 : "External Factors in the Asian Financial Crisis of 1997-1998"

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