Thailand's economy developed into an economic bubble fueled by hot money. More and more was required as the size of the bubble grew. The same type of situation happened in Malaysia and Indonesia, which had the added complication of what was called " crony capitalism ". Development money went in a largely uncontrolled manner to certain people only - not necessarily the best suited or most efficient, but those closest to the centers of power.
The East Asian miracle: It seeks to uncover the role those policies played in the dramatic economic growth, improved human welfare, and more equitable income distribution It seeks to uncover the role those policies played in the dramatic economic growth, improved human welfare, and more equitable income distribution in Hong Kong, Indonesia, Japan, Malaysia, the Republic of Korea, Singapore, Taiwan Chinaand Thailand.
HPAEs stabilized their economies with sound development policies that led to fast growth. They were committed to sharing the new prosperity by making income distribution more equitable. Their public policies promoted rapid capital accumulation by making banks more reliable and encouraging high levels of domestic savings.
They increased the skilled labor force by providing universal primary schooling and better primary and secondary education.
Agricultural policies supported productivity, while requiring only modest taxes. HPAEs kept price distortions in check and welcomed new technology. Legal and regulatory structures created a positive business environment. Cooperation between governments and private enterprises was fostered.
Beyond the fundamentals of accepted macroeconomic management, HPAEs adopted policies at variance with the notion of the level playing field of open-market free enterprise.
HPAEs targeted key industries for rapid development. In key areas, resource allocation was strictly managed. Trade in manufactured exports was promoted by government-established marketing institutions. Analysts disagree about the effectiveness of such interventions, but agree that without the foundation of macroeconomic stability and development of human and physical capital, the expansion would not have been so dramatic and sustainable.
This report reviews the basic development policies of HPAEs that created macroeconomic stability.
|Papers | Joseph E. Stiglitz||Asian Contagion Between June and January a financial crisis swept like a brush fire through the "tiger economies" of SE Asian.|
|The financial crisis and what’s in store for Southeast Asia | East Asia Forum||Overview[ edit ] Growth in per capita GDP in the tiger economies between and  Prior to the Asian financial crisisthe growth of the Four Asian Tiger economies commonly referred to as "the Asian Miracle" has been attributed to export oriented policies and strong development policies. Unique to these economies were the sustained rapid growth and high levels of equal income distribution.|
See Less - Document also available in:During the s, the rapid development of many East Asian economies under restricted political arrangements led to claims for the superiority of a so-called ‘Asian model’ of democracy.
1 The Asian economic crisis . Tracing the origins of the financial crisis by Paul Ramskogler* that model the interest rate as a function of the But why did this major development go unnoticed before the crisis? In fact, most analysts and decision . The Cause of the Asian Financial Crisis Words | 18 Pages.
that caused the Asian Financial Crisis in The review is made on 5 papers by 5 authors on the subject. Introduction The Asian Crisis of and affected many of the East Asian and South East Asian countries surprised many.
3) Gradually, the identity of East Asian countries became incorporated into a larger economic identity.
The close economic variance of Japan, South Korea, China, and Taiwan in terms of competitiveness, efficiency, and quality management was generally factored into the East Asian identity. Philippines I.
Crisis The Philippines entered the crisis on a sound footing relative to its major East and Southeast Asian neighbors (except Indonesia), which commonly experienced economic contraction, especially in the industrial and export sectors. One can argue that the Asian financial crisis of - and the rapid economic growth of eight East Asian countries economies, often called the East Asian miracle is now seen as one of the most significant economic events in recent world history.