The Economic Crisis Of 1997 - 902 Words

The Indonesian economic crises that emerged out of the greater Asian Financial Crises of 1997 is often presented as an example of an International Monetary Fund (IMF) project that created problems for the receiving nation. As the video Globalization at a Crossroads stated in its final words, â€Å"It supported the case that economic globalization actually increased economic instability.† Indeed, there were immediate, and in some cases, irreversible consequences of the IMF’s intervention into Indonesia’s economy. Examples of negative consequences included riots, massive inflation and contraction in the economy (Shari, 1998). However, through the lens of the current Indonesian economy, almost 20 years later, IMF intervention may have eventually worked as intended, as the country has demonstrated economic stability and growth through several more contemporary economic crises. In the beginning of the IMF’s intervention in Indonesia, it seemed as though the IMF could do nothing right. On multiple occasions, Suharto, Indonesia’s dictator, had upstaged and embarrassed the IMF and IMF officials. The embarrassment hit a high note on May 14th, 1998 when riots and fires ran the remaining IMF delegation out of the country, but not before they were shaken down by immigration officials in exchange for food and water (Shari, 1998). As Michael Shari reported in Business Week in 1998, the IMF’s faith in Suharto as a trustworthy and capable leader was severely flawed. At first, â€Å"Suharto†¦wonShow MoreRelated The 1997 and 1998 Asian Economic Crisis Essay2324 Words   |  10 PagesThe 1997 and 1998 Asian Economic Crisis The purpose of this paper is to explore the causes of the 1997 and 1998 Asian economic crisis; and to research the effects of the crisis in each of the following categories: 1. The effects of the crisis in the countries involved in the economic crisis of 1997-98. 2. The effects on the governments affected by the crash, and 3. The effects that the Asian crisis has had on the differing world markets as well as the effects that it will continue to haveRead MoreThoughts Of The Asian Crisis1211 Words   |  5 PagesPaper Thoughts of the Asian Crisis (1997-1998) In the period between 1997 to 1998, a great economic storm blew the some fast-developing countries, especially Thailand, Indonesia and Malaysia. They had great economic development before the crisis, but left almost everything at the end of the storm. The most obvious impact of the crisis is the capital outflows and currency devaluation. So, people in those developing countries began to find who should be responding to the crisis. International speculatorsRead MoreSouth Korea s Economic Crisis1534 Words   |  7 PagesBetween 1990 and 1996, South Korea experienced strong economic growth ever since South Korea was separated from North Korea. As the data of South Korea economy from World Bank web provides, Average growth rate was around 8 percent and inflation rate averaged 5 percent. Moreover, unemployment rate was stable below 3 percent (citation use footnote or endnote). Until 1997, Korea was one of miracle East Asian countries that grew up incredibly faster than that of other Asia n countries. Others believedRead MoreImpact Of The Asian Financial Crisis Of 1997 On The Region s Development1704 Words   |  7 PagesFinancial Crisis of 1997 on the region’s development â€Å"Since World war II, development has been the most important term used to describe economic, social and political changes in what have come to be known as Third world countries† (Zhang, 2003). The Asian financial crisis of 1997 had a major impact on the regions development as it was the end of the East Asian economic miracle, a time that showed staggering economic growth throughout the Asia Pacific. However, despite evidence that the economic developmentRead MoreThoughts Of The Asian Crisis1207 Words   |  5 Pages Thoughts of the Asian Crisis (1997-1998) In the period between 1997 to 1998, a great economic storm blew the some fast-developing countries, especially Thailand, Indonesia and Malaysia. They had great economic develop before the crisis, but left almost everything at the end of the storm. The most obvious impact by the crisis is the capital outflows and currency devaluation. So, people in those developing countries began to find who should be respond to the crisis. International speculators wereRead MoreEffects of the Asian Financial Crisis on 19971006 Words   |  4 PagesThe financial crisis in many countries in Asia in 1997-1998 was an unexpected event. It was mainly because most of the Asian countries had been enjoying economic growth prior to the crisis. The crisis itself started with the devaluation of Thailand’s Baht in July 1997. The Thailand government decided to float its currency in order to defend the Baht against speculative attack, despite its fixed exchange rate system. This decision was apparently t he beginning of the economic downturn of many AsianRead MoreEssay On ASEAN1009 Words   |  5 Pagesregion benefited from macroeconomic stability with countries ran budgetary surpluses up to the middle of 1997. The engine growth was said to be the exports, which grew more than fifty-fold from US$6.3 billion in 1970 to US$340 billion in 1996 (Setboonsarng, 1998). Much of the growth in the region could be attributed to the ASEAN leaders’ decision to launch the region on the road to real economic integration by starting the process of creating the ASEAN Free Trade Area (AFTA) in 1992 and liberalizeRead MoreImf As An International Financial Institution Essay1130 Words   |  5 PagesThe 1997-1998 Indonesian Economic Crises. IMF Interventions - Lessons to learn. Introduction. 1997 to1998 saw the East Asian nations of Thailand, Indonesia and South Korea engulfed in an economic and financial crises that nearly collapsed their economies. The IMF was at the center stage to help during these crises. How IMF’s assistance further deepened Indonesia’s economic crises, received heavy criticism from Political, economic and social analyst against IMF s programs and Policies in DevelopingRead MoreWhy The State Is A Weak Player On Public Policy1432 Words   |  6 Pagesimplement after the 1997 economic crisis in Indonesia. Djiwandono (2006) concludes that the economic crisis in 1997 was caused by the combination of weak domestic economic and inefficiencies financial structures and â€Å"contagion† forces from external. Specifically, the combination of external shock starting in Thailand in 1997 and the weak Indonesia banking system soon resulted a systemic banking crisis (Omori, 2014). Data shows that Rupiah depreciated 80% in just less than 12 months, economic growth slumpedRead MoreFactors That Caused the 1997 East Asian Financial Crisis1604 Words   |  6 PagesFactors That Caused the 1997 East Asia Financial Crisis Discuss the principal factors responsible for the East Asian currency/financial crisis of 1997. In 1997, there occurred certain shifts in expectations from the market. The regional contagion and confidence led to the East Asian financial turmoil. In 1990s, it had been reported that the microeconomic and macroeconomic businesses were not performing as expected. The local and international investors had not held enough grips into the looming