This Case is about EMERGING MARKETS, FINANCIAL ANALYSIS, FINANCIAL MANAGEMENT, GLOBAL STRATEGY, GLOBALIZATION, GOVERNMENT
PUBLICATION DATE: October 31, 2008 PRODUCT #: 709004-HCB-ENG
What caused the 1997-98 Asia Disaster: Asian nations’ poor economic management, international financial contagion, close “crony” relationships between local politicians and capitalists? This case analyzes how the crisis erupted in Thailand and spread in a chain of events that no one-neither Asian monetary authorities nor Western economists-had foreseen. The disaster raises questions about how competently monetary institutions including mutual funds managed their capital investments that are world-wide. It raises question about how successful the bundle of reforms of the International Monetary Fund was-and to what degree the IMF acted in the importance of Wall Street as opposed to developing countries. And the disaster raises questions about the development policies of Asian nations: Did overly-close “crony” relationships between politicians and owners of leading banks or companies pave the way for disaster?