The Current State of the Asian Crisis and Prospects

Abstract

At the time of writing, it has been more than ten months since the Asian financial crisis emerged with a vengeance on the world economy and brought with it substantial economic, financial and social impact on the Asian economies in particular. The crisis has caused a change in governments in some countries in trouble and has threatened the stability of other neighbouring nations in the region. The more serious and profound aspect of this so-called turmoil or meltdown can be seen perhaps from the positive economics perspective in which the economic gains and achievements of the past two or three decades by the economic tigers and dragons of Asia have been wiped out in a year or so and the standard of living of many people of these Asian countries in trouble has been greatly eroded. Social unrest has also been happening in the major ASEAN countries which for centuries have had a reputation for being a peace-loving and mai-pen-rai (that is, nothing matters much really) people. This effect of the crisis has resulted in brutal police crackdown and civilian fatalities. One is reminded here of the similar event (rising food prices and hardships in the economy as a result of government policy) that led to the storming of the Bastilles in France, igniting the French Revolution of 1789 and starting an industrial revolution, a new political order, a new civilization and a new economic age towards the end of the second millenium.