Myth of Recovery: The Asian Crisis More Than a Decade Later

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Three issues have been underplayed in the retrospective analyses of the 1997 Asian Crisis. First, economic performance of the crisis-affected economies in the post-crisis period has been inferior relative to their pre-crisis period performance. In short, the Asian Crisis played an important part in undermining performance. Second, the crisis-affected economies have yet to recoup the losses incurred during the Asian Crisis. Stronger but sustained economic growth is crucial to recovery. Lastly, unless policies move in a positive direction -- wherein governments revive strategies that have proven effective in achieving dynamic performance and then strategically employ new ones to meet current challenges -- recovery would be limited and punctuated by crises. In view of the Global Crisis, it was deemed necessary to pull out the policy guidelines outlined in the book and apply them to the present crisis. Were the lessons from the Asian Crisis learned by the crisis-affected economies? And were the lessons learned by other economies to forestall the Global Crisis?