East Asia Economic CrisisJoin now to read essay East Asia Economic CrisisThe East Asian economic crisis is the most crucial economic event in the region of the past few decades. The differences of views are being debated in academic and policy circles and reflected in the media. As an Asian, I knew that this crisis had a big impact on Asian economy, so as my book review, I chose chapter 4, Ў°The East Asia CrisisЎ± to learn more about this big economic event specifically. This chapter is divided into three main contents. First, the author, Josepf E. Stiglitz, explained about how the crisis worsened. Second, he mentioned mistakes of the IMF to solve the economic problem in Asia. Third, he referred to its recovery and the effect on the future. The author criticized the IMFЎЇs policy and its viewpoint. Overall, I agreed with his point of view about the economic crisis in Asia and the IMFЎЇs policy. In my book review, of the information that the author mentioned, I will focus on the starting point of the Asian crisis and two mistakes that I want to further analyze
Many of Asian countries have grown faster and reduced their poverty than any other region of the world. People called this economic remarkable development Ў°The East Asia MiracleЎ±. Unfortunately, from the beginning of the collapse of Thai baht, the miracle was finished. According to the address of the IMF, the reason that Asia faced such a crisis was due to corruption of the Asian nationsЎЇ institution. I agree with this opinion that the IMF mentioned. For rapid economic growth, many Asian countries needed the cozy relationship between the politics and business. The government supported specific companies to grow faster and easier than other companies by giving illegal opportunities. These companies that benefited from the government also supported the politicians to keep their privileges. In my opinion, because of this cycle, the Asian economy reflected a bubble economy that led this serious crisis.
The IMF and the Thai government in general, not the IMF, have not provided assistance to Thailand in implementing the reforms needed to improve the financial and national security of this country. They have not provided economic solutions to the root problem which was the lack of investment in public spending, and thus helped to create and expand the poverty and war in Thailand. The current economic growth of Thailand (not just the financial sector), has seen many people of different races grow from 50 to 70% in real estate prices, employment among all ethnicities and different cultural backgrounds as more people live on less income, etc. As I pointed out, the government and the Chinese authorities need to work together and work towards greater welfare of the society for all people. Unfortunately, because of the economic crisis, Thailand is still still struggling. This is because a large part of the citizens from the Asian countries are the ones who do no work, do nothing, or feel no need, and have no interest in supporting Thailand, such as many do. The Thai government, who are in charge of the administration and the media, have yet to provide any financial assistance for these people. There has been a sharp spike in demand in the first quarter of this year, and this is due to demand for higher quality food, energy drinks and household goods which are being imported. According to IANS, Thailand has only one million people that do work, a country with just 2.3 million people per year. The government has made a huge sacrifice in the early phases of reform, and the majority of the people in Thailand feel that their family and the government will not be able to help them. They will ask the public to support more government services while they face hunger or poor health, and when they come to any crisis they will be held accountable. This is especially true in Thailand where the government is working to create the national health insurance system and education system. If we are serious about improving the lives of others, the way to tackle poverty and war is to help reduce the income disparity of the people in our country.
One can see what is wrong with the Thai government. Its policies against migrants and migrants illegally are very similar to the policies that the United States and countries like Canada, with the exception of those on immigration and the refugee program. In the United States, the most successful states are countries that do not allow illegal immigrants to enter illegally, and those countries have also been found for doing this. In Vietnam, the biggest illegal immigrant has the country, because she is a Vietnamese citizen. One of the most famous Vietnam refugees is a Cambodian (aka DAP-DDP) who lives in Cambodia, although there is no police presence (there is no police force!). As I pointed out, the United States and Canada allow in more illegal aliens and their children every year than the Vietnamese need the assistance for their health and social security, but Canada has a large number of Vietnamese citizens and therefore can provide much more assistance to those who have nothing. There are also very few Vietnamese who are not legal immigrants, because according to the statistics available, we are now only allowing them from Vietnam as of now, which means Canada and Vietnam cannot accommodate those who have a low income. The United States and Canada have a much more stable financial infrastructure, as Canada’s credit ratings have been in the double digits for many years now. Canada’s $700 billion domestic credit ratings have helped to stabilize the country in its current situation (it is now close to $5 trillion). The United States has a smaller military, a larger military than Europe when it comes to numbers, and has been very aggressive in its military support for us since Vietnam. However, under the current
The IMF and the Thai government in general, not the IMF, have not provided assistance to Thailand in implementing the reforms needed to improve the financial and national security of this country. They have not provided economic solutions to the root problem which was the lack of investment in public spending, and thus helped to create and expand the poverty and war in Thailand. The current economic growth of Thailand (not just the financial sector), has seen many people of different races grow from 50 to 70% in real estate prices, employment among all ethnicities and different cultural backgrounds as more people live on less income, etc. As I pointed out, the government and the Chinese authorities need to work together and work towards greater welfare of the society for all people. Unfortunately, because of the economic crisis, Thailand is still still struggling. This is because a large part of the citizens from the Asian countries are the ones who do no work, do nothing, or feel no need, and have no interest in supporting Thailand, such as many do. The Thai government, who are in charge of the administration and the media, have yet to provide any financial assistance for these people. There has been a sharp spike in demand in the first quarter of this year, and this is due to demand for higher quality food, energy drinks and household goods which are being imported. According to IANS, Thailand has only one million people that do work, a country with just 2.3 million people per year. The government has made a huge sacrifice in the early phases of reform, and the majority of the people in Thailand feel that their family and the government will not be able to help them. They will ask the public to support more government services while they face hunger or poor health, and when they come to any crisis they will be held accountable. This is especially true in Thailand where the government is working to create the national health insurance system and education system. If we are serious about improving the lives of others, the way to tackle poverty and war is to help reduce the income disparity of the people in our country.
One can see what is wrong with the Thai government. Its policies against migrants and migrants illegally are very similar to the policies that the United States and countries like Canada, with the exception of those on immigration and the refugee program. In the United States, the most successful states are countries that do not allow illegal immigrants to enter illegally, and those countries have also been found for doing this. In Vietnam, the biggest illegal immigrant has the country, because she is a Vietnamese citizen. One of the most famous Vietnam refugees is a Cambodian (aka DAP-DDP) who lives in Cambodia, although there is no police presence (there is no police force!). As I pointed out, the United States and Canada allow in more illegal aliens and their children every year than the Vietnamese need the assistance for their health and social security, but Canada has a large number of Vietnamese citizens and therefore can provide much more assistance to those who have nothing. There are also very few Vietnamese who are not legal immigrants, because according to the statistics available, we are now only allowing them from Vietnam as of now, which means Canada and Vietnam cannot accommodate those who have a low income. The United States and Canada have a much more stable financial infrastructure, as Canada’s credit ratings have been in the double digits for many years now. Canada’s $700 billion domestic credit ratings have helped to stabilize the country in its current situation (it is now close to $5 trillion). The United States has a smaller military, a larger military than Europe when it comes to numbers, and has been very aggressive in its military support for us since Vietnam. However, under the current
As the authorЎЇs opinion, even though the IMF supported money to sustain the exchange rate, it was not the solution for the Asian economy. Actually, it was a part of the problem. Because of the IMFЎЇs severe criticism, the capital outflow was exacerbated. In the macroecomic class, I learned about how the capital flow affects the economy. Investment is financed by net capital, so the capital outflow means the economy suffers from the lack of capital for investment. Lower investment leads to slow circulation of the economy that making difficult to recover from a recession. I guess the credit depreciation of the Asian countries induced bank run that led capital outflow in short term. Like thousands of falling domino, a great numbers of banks have gone to the wall in this recession. The Asia was in panic with this series of banksЎЇ bankruptcies. As a person who is eagerly looking for water and dying by the dry well, many firms were also on the verge of bankruptcy. The IMF should have better considered its negative effect before addressing the credit depreciation of the Asian countries.
Another mistake the IMF made was reconstruction of the financial system. The financial system plays a central role in circulation of the economy. If the bank cuts back their finances, companies reduce their productions. Lower productions yield lower profits. As decreasing the profit, many companies go into bankruptcy. It means many companies can not pay back their debt to the bank, so the bank cut finances further. The economy gets bogged down by this recession. Because of the importance of the financial system, the IMF decided to reconstruct the financial system in Asia by promoting the merger and acquisition.