The paper "Is This the Asian Century" is a great example of macro & microeconomics coursework. This study will involve an in-depth analysis of the Asia financial crisis in conjunction with the most recent global financial crisis. It will serve to determine the effects of the financial crisis on the proper running of businesses. It will also delve into the solutions to the financial crisis. It will lastly determine whether this is the Asian Century in light of the happenings in the world. Background information (Arndt, 1999) suggested that the Asian’ s have seen a growth in their economy for a long time now.
Their growth has however been slowed down by a few crises here and there. The most notable crisis is the Asian financial crisis that took place in 1997. It climaxed with the plummet of the Thai Baht. The crisis then spread to Indonesia, Korea and Malaysia. This further instigated a bigger problem; a global financial crisis caused by the unstable Asian economy. According to (Roach & Lachman, 2006) the global financial crisis left Brazil’ s Real and Russia’ s ruble dysfunctional.
It led to a distinct decline in currencies, the stock markets, asset prices, it posed a threat to the countries’ financial systems, impaired their real economies and also caused a humanitarian crisis. (Stiglitz, 1999) suggested that the Asian crisis also affected areas without the Asian region; it put a lot of pressure on upcoming markets outside the region, it played a part in the virulent contagion, it contributed to the volatility in global financial markets and it was projected to half the speed of world growth in 1998 and in 1999. It was expected to cause a fall from the initially predicted 4 percent to about 2 percent (Stiglitz, 1999). Aims To determine whether this is the Asian Century. To determine the causes of the financial crisis. To determine their effects on the economy mainly businesses. To determine the solutions to the crisis. Body Changes made in the Asian Economies According to the (Technical Assistance Report, 2008) Asian economies that are successful for instance Malaysia, Vietnam, Thailand and the People’ s Republic of China have changed in key areas.
The key area in which change has been experienced has been in its structural transformation.
They have experienced a change in their employment and output. They have strategically moved their resources from agriculture and channeled them to value-added sectors like the ones in industry and services.
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