Tigers in trouble : financial governance, liberalisation and crises in East Asia / edited by Jomo K.S.

Format:

Book

Contributor:

Jomo K. S. (Jomo Kwame Sundaram)

Language:

English

Subjects (All):

Capital market--East Asia.

Capital market.

Financial crises--East Asia.

Financial crises.

East Asia.

Monetary policy--East Asia.

Monetary policy.

International Monetary Fund.

International finance.

Local Subjects:

International Monetary Fund.

International finance.

Capital market--East Asia.

Monetary policy--East Asia.

Financial crises--East Asia.

Physical Description:

xvi, 256 pages : illustrations ; 23 cm

Place of Publication:

Hong Kong : Hong Kong University Press ; Cape Town : IPSR Books ; Dhaka, Bangladesh : University Press Ltd. ; London ; New York : Zed Books ; New York : Distributed in the USA exclusively by St. Martin's Press, 1998.

Summary:

This important book provides a cogent critique of the nature of Southeast Asian capitalism. It argues powerfully that the crises in Thailand, Indonesia, Malaysia and the Philippines as well as South Korea are due not to excessive market regulation, but to too much financial liberalization and a consequent undermining of effective monetary and fiscal governance. While recognizing some macro-economic problems and abuses of state intervention in the region, the authors also highlight the nature and implications of current IMF and domestic policy responses which are exacerbating the crises. The first section introduces the crisis; highlights the inadequacies and failure of international financial governance; shows how different these crises are from the earlier Mexican collapse; and investigates the policies on which the IMF is now insisting. The book goes on to present the situation in each country in terms of the historical background, the course of the crisis so far, and the reactions of the various government.

Contents:

1 Introduction: Financial Governance, Liberalisation and Crises in East Asia / Jomo K.S. 1

Macroeconomic Concerns 3

Collapse: The Bubble Bursts 5

Lessons 6

Policy Challenges 8

Changed International Financial System 9

Implications of Financial Liberalisation 11

Analytical Catch-up 13

Understanding the Southeast Asian Currency Crisis 16

IMF Intervention 18

This Volume in Brief 21

Roots of the Crisis: Challenges of Governance 23

2 The East Asian Financial Crisis: Back to the Future / Yilmaz Akyuz 33

The Crisis: Surprising or Predictable? 34

The Policy Response 37

Global Implications 38

3 East Asia is not Mexico: The Difference between Balance of Payments Crises and Debt Deflation / J.A. Kregel 44

An Interpretation of the Asian Crisis 45

A Financial Crisis of International Capital Market Failure 51

Stage Two: The Cure is Worse than the Disease 57

4 Hubris, Hysteria, Hope: The Political Economy of Crisis and Response in Southeast Asia / C.P. Chandrasekhar, Jayati Ghosh 63

Background to the Current Crisis 63

The Financial Crisis 68

The IMF Response 74

Foreign Finance, Governments and People 78

The Prognosis 80

5 Taming the Tigers: The IMF and the Asian Crisis / Nicola Bullard, Walden Bello, Kamal Malhotra 85

The IMF and Thailand: A Cosy Relationship 85

The IMF and Indonesia: Under the Volcano 92

The IMF and South Korea: Teaching the Tiger a Lesson 100

Social Impact of the Crisis 109

The Role of the IMF 120

6 Thailand: Causes, Conduct, Consequences / Laurids S. Lauridsen 137

Excessive Short-term Borrowings and Casino Capitalism 138

Financial Institutions and the Financial Crisis in the 1980s 140

Financial Liberalisation in the 1990s 142

Economic Slowdown, Loss of Competitiveness and Currency Crisis 143

The Politics of the Financial Crises 145

Financial Crisis and Breakdown of Investor Confidence 147

The IMF Medicine 149

The Chuan Government: Financial Clean Up and Sticking by the Terms 151

From Financial Crisis to Socioeconomic Crises 153

7 Indonesia: Reaping the Market / Manuel F. Montes, Muhammad Ali Abdusalamov 162

Setting the Stage 163

Asian Crisis Erupts 171

Conclusions: Understanding the Political Economy 179

8 Malaysia: From Miracle to Debacle / K.S. Jomo 181

Policy Responses: Solution or Problem? 184

Denial and Distraction 185

Bail-outs for 'Cronies' 186

The Changing Budget as a Reflection of Changing Stance 189

Finally, the Tide Turns 190

Confidence Restoration 192

Political Fallout 194

9 The Philippines and the East Asian Economic Turmoil / Joseph Y. Lim 199

Economic Phases in the Last Two Decades 199

Analysis of the Causes of the Crisis 213

Prospects for the Future 219

10 South Korea: The Misunderstood Crisis / Chang Ha-Joon 222

Understanding the Crisis 222

Immediate Causes 223

Deeper Causes 226

What Future for Korea? 229

Afterword: The East Asian and Other Financial Crises

Causes, Responses and Prevention / G.K. Helleiner 232

Causes 232

Issues in Crisis Management 233

Crisis Prevention and Damage Control 236.

Notes:

A collection 10 essays by the editor and other authors.

Includes bibliographical references (pages [239]-247) and index.

ISBN:

1856496619

1856496627

9622094759

0958422443

0958422435

9840514458

OCLC:

39235795