Although Thailand sustained high levels of growth for decades, international capital flight triggered an economic crisis that was exacerbated by domestic weaknesses as well as poor reform measures. Furthermore, the Asian Financial Crisis initially became a catalyst for political reform in Thailand, which eventually facilitated the rise of Thaksin Shinawatra. During the rapid transformation from agrarian to an export driven industrialized economy, Thailand was within the top 20 countries with the highest change in GDP per Capita. The World Bank explained the rapid growth sustained over decades as “fundamentally sound development policy.” The “unusually good” macroeconomic management and stable performance “provided the frame work for private investment.” Combined with progressive education and agriculture as well as “effective but carefully limited government activism,” Thailand experienced a reduction of absolute poverty (from 59 percent in 1962 to 9.8 percent in 1994) and a dramatic improvement of basic social ... ... middle of paper ... ...ian, et al. “What to do about Asia.” Business Week.
However, between 1960 and 1990, the country experienced remarkable economic growth and recovery, and soon the world's 11th most powerful economy. Many other Southeast Asian countries had similar experiences. South Korea, Hong Kong, Taiwan and Singapore were previously known as the "Four Tigers" because of their fast and aggressive entry into the global marketplace. Other examples include Japan, Malaysia, Indonesia and Thailand, each of which experienced rapid growth and prosperity in relatively short periods of time. In the U.S., the "Asian miracle" stirred up both awe and fear.
“Stock Exchanges”: The battle for efficient markets’. 17th June, pp. 80-82 The Economist. (2000). “Tomorrow’s Stock markets”, 17th June, pp.17-18 Viney, C. (2000) Financial Institutions, Instruments and Markets, Roseville N.S.W., McGraw-Hill Williamson, C., (1999).
Columbia.edu. A Good Look at the thai Financial Crisis in 1997-98. 28 July 2013. 3. Haider A. Khan, Global Markets and Financial Crises in Asia, University of Denver 2004 4.
The book talks about the economic bloom in Southeast Asia. The East Asian countries borrowed a lot of money from the IMF and World Bank and used it to create a better economy for themselves. I found out that the following countries due to their reoccurrence during my research experienced the bloom. The countries are as listed: South Korea, Indonesia, Hong Kong, Thailand, Malaysia, The Philippines, Singapore and Taiwan. These countries experienced a lot of growth, growth that even doubled the growth in the rest of East Asia, and almost tripled the growth in Latin America.
Sub-prime Mortgages and the Building Blocks of the Financial Crisis ... ... middle of paper ... ...pubs/ft/fandd/2008/06/dodd.htm Carmassi, J, Gros, P and Micossi, S. The Global Financial Crisis: Causes and Cures. Journal of Common Market Studies. Vol.47, No.5, pp. 977-996, 2009. Available at: http://www.relooney.info/SI_FAO-Asia/Global-Crisis_23.pdf Blakenburg, S and Palma, J.G.
Foreign Direct Investment (FDI) is referred to, as when an investor not only finances a project or enterprise, in a specific country but is also directly involved in the management of it. FDI has been significantly rising worldwide since 1990, increasing from $207.5 billion (16.8%) to $1524.4 (51%) billion in 2011 (Sesric, 2013). This could be as a result of the increasing favourable policies which are directly targeted to FDI in most countries, such as the reduction in trade tariffs and the making of certain currencies convertible, as well as the liberalisation of the businesses environment (IFC & FIAS, 1997). FDI is also seen as a major enhancer in the economic growth of some countries, in which they strive to promote and increase it. This may explain the reason why Singapore received $56.7 billion worth of FDI in 2012 (CogitASIA Staff, 2013).
Leading up to October 1929 the marginal prices were as high as 50% and some even 75%, but after October they were as low as 25%. The popularity of the stock market grew because it was an easy way to make lots of money. Within the years leading up to 1929 “the Dow Jones Industrial Average quadrupled” (Suddath) which made it the longest “bull market” recorded at that point in time. Because of this many of the investors started raising stock prices over the “fundamental values” (“M... ... middle of paper ... ...tabilize these two companies, the U.S. Treasury supplied several funds for them. In the process of doing this the debt ceiling was raised by 800 billion dollars.
Steverman,B. and Bogoslaw, D. (2008) ‘The financial crisis blame game’, Business week, October [Online]. Available at: http://www.businessweek.com/investor/content/oct2008/pi20081017_950382.htm?chan=top+news_top+news+index+-+temp_top+story (Accessed: 1st August 2010). Velde,D.K (2008). The global financial crisis and developing countries.
Retrieved August 6, 2010, from http://www.ridenbaugh.com/index.php/2010/04/13/wamu-as-toxic/ Hudson, M., & Overton, J. (2009, January 9). The Second Savings And Loan Scandal. In Forbes.com. Retrieved August 6, 2010, from http://www.forbes.com/2009/01/21/wamu-indymac-thrifts-oped-cx_mh_jo_0121hudsonoverton.html OTS Fact Sheet on Washington Mutual Bank.