Debt Problems and Asian Perspectives
The arguments of this chapter are mainly concerned with the financial crisis in the world in the early 80s. The crisis caused the recession in the early 80s in East Asian economies for the first time after World War II. Almost a decade later, similar financial crisis has occurred in East Asian economies. To trace the serious debt situations of many developing countries is by no means easy. The author took some pains to do the work around 1983 to 84. The financial situations in 1997 to 98 look very much alike, only more serious this time. Similar studies are urgently needed for the current conditions in East Asia. The following examination refers to almost all developing countries in the world, because the oil crisis then was global. It should be remembered, however, that the present financial crisis in East Asia was preceded by the similar crises in Mexico in 1994 and then other Latin American countries. The government and financiers in East Asian economies should have learnt from the lessons in these two preceding crises. Both crises are very similar. Many warnings given by wise experts in the 80s and by IMF or ADB have been ignored by ignorant and too ambitious politicians, bankers and businessmen.
KeywordsLatin American Country Interest Payment External Debt Asian Development Foreign Exchange Reserve
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- 2.This information was gathered from various sources so that it might have contained some margin of error, but I believe that the figures were approximately correct.Google Scholar
- 3.Sec, for instancc, The Tobin Tax, edited by Mahbub ul Haq, Inge Kaul and Isabelle Grunbcrg, Oxford Univcristy Press, New York, 1996.Google Scholar
- 4.This aspect is also relevant to the financial crisis of East Asian economies in 97 to 98. Not only the public debt but also private debt by big corporations is critical in Korea, Indonesia and others.Google Scholar