Asian
After nearly thirty years of great economic growth many Asian countries are in recession due to many bad business decisions. The Asian financial crisis caused the value of Asian currency fall 50-60 percent, stock markets to decline by 40 percent, property values to drop, and banks to close. The Asian financial crisis began in mid 1997 because of currency devaluation, bad banking practices, high foreign debt, and corruption; has lead to a decline in the currency and stock markets of all Asian countries. As the financial crisis continued it soon turned into an economic and social crisis as well. At the base of the financial crisis is millions of dollars in bad bank loans. Many of the banks suffered from limited institutional development and a lack of governing laws. Credit tended to flow towards borrowers with government relationships or private bank owners and to favored sectors rather that on the basis of projected cash flows, realistic sensitivity analysis, and recoverable collateral values. The financial crisis began in Thailand in May of 1997 when investors became worried about Thailand's political instability, slowing economy and excessive debt. As they invested their money in more stable markets and pulled out of
As Asian economies slowed down many families felt the effect of the crisis. The demand for labor has dropped dramatically since building and expansion projects have come to a halt. Because of this and drought many urban and rural families are now unemployed. Due to exchange rate devaluation prices for basic necessities such as food and medicine, have risen drastically. Spending has also slowed down since families don't have enough money to purchase more than that which is necessary. The International Monetary Fund has implemented a plan and loaned billions of dollars in order to help Asian countries pull out of this financial crisis. The plan calls for an increased intrest rate and to tighten money supplies in order to slow down expansion. The restructuring of conglomerates and better supervision of banks to cut down on the type of corruption that was very common in the past. Opening of the international market to bring back foreign investment and encourage investors to buy off failed companies. They also want to increase taxes to create a government surplus so Asian countries can better control their economies. So far the IMF has loaned $18 billion to Thailand, $47 billion to Korea, and $57 billion to Korea in hopes of accomplishing its plan. Korea was also greatly effected sinc
Some common words found in the essay are:
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Approximate Word count = 882
Approximate Pages = 4 (250 words per page double spaced)
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