About Olarn ChaipravatOlarn Chaipravat is Advisor to the Prime Minister, President of Thailand Trade Representative. He previously served as Deputy Prime Minister of Thailand. He obtained his PhD in economics from Massachusetts Institute of Technology.
By Olarn Chaipravat. Posted August 13, 2012
In analysing the European financial crisis, Asia’s experience with the 1997 Asian financial crisis is a useful point of reference. After the forced devaluation of the Thai baht, encouraged by the People’s Republic of China (PRC) and Japan, Thailand was compelled to accept the IMF-imposed austerity programs. As part of the contagion that followed the baht crisis, Indonesia and the Republic of Korea also accepted the IMF program. As the IMF’s prescriptions reduced aggregate demand and contained no “pro-growth” elements, they worsened the crisis in these Asian countries. In contrast, Malaysia rejected the IMF’s prescriptions. The different experiences of these crisis-hit Asian economies led to a change in thinking on the productiveness of “straight” austerity programs as a response to the financial crises. Austerity policies were relaxed and pro-growth policies introduced, which in combination, helped Asia to recover from its financial crisis. Read more.
Search Asia Pathways
Subscribe / Connect
- Agriculture and rural development
- Information and Communications Technology
- Poverty Reduction
- Public-Private Partnership
- Regional Cooperation
- Social Development and Poverty
- The Institutionalization of the Credit Surety Fund in the Philippines
- Innovation in Health Care in South Asia
- Does internal and external research and development affect innovation of small and medium-sized enterprises? Evidence from India and Pakistan
- What can we learn from the trade and growth nexus in the Republic of Korea?
- Some knowledge economy lessons from the Republic of Korea for Africa
Receive ADBI's daily e-newsline for unparalleled breadth of coverage on development topics from across Asia and the Pacific.