more than
two decades. Yet, in some other ways, the current
crisis is not very different from those that
have preceded it in the recent past.
July 2007 marked the completion of a decade
since the onset of financial crisis in several
East and Southeast Asian countries. The crisis
of 1997 focused attention on the dangers associated
with a world dominated by fluid finance. It
brought home the fact that financial liberalization
can result in crises even in so-called ‘miracle
economies’. Prior to the crisis, the pace
and pattern of growth in many countries in that
region were challenging the dominance of the
original capitalist powers over the global economy.
The 1997 crisis set back that process, and even
after a decade many of these countries have
not been able to recover their pre-crisis dynamism.
In hindsight, it is clear that currency and
financial crises have devastating effects on
the real economy. The ensuing liquidity crunch
and wave of bankruptcies result in severe deflation,
with attendant consequences for employment and
the standard of living. The adoption, post-crisis,
of conventional IMF stabilization strategies
tends to worsen the situation: governments continue
to adopt very restrictive macroeconomic policies
and restrain public expenditure even in crucial
social sectors. Finally, asset price deflation
and devaluation pave the way for foreign capital
inflows that finance a transfer of ownership
of assets from domestic to foreign investors,
thereby enabling a conquest by international
capital of important domestic assets and resources.
This book delineates the alternative trajectories
of post-crisis development in different economies,
the lessons they offer and the implications
they have for alternative policies. It is important
to take stock of these processes because it
is becoming evident that the international financial
system has still not evolved effective ways
of preventing such crises among emerging economies
and of reducing their damaging effects. This
book therefore has a wider focus than the East
Asian ‘crisis economies’ alone:
it tries to situate post-crisis developments
in a broader analysis of the recent political
economy of international capitalism, in particular,
the role of mobile finance. It also offers comparative
perspectives on post-crisis restructuring in
other developing countries that have experienced
crisis; as well as on the experience of other
Asian countries that were affected by, but did
not experience the financial crisis. While the
essays in this book were originally written
in 2007, they remain extraordinarily relevant
to the present times, not least because they
anticipate the processes that led to the global
financial meltdown in 2008. Many of them predict
the severe impact the current global crisis
is having on both financial variables and the
real economy, in developing countries in particular.
Contents
Contributors
Introduction Jayati Ghosh & C.P. Chandrasekhar
The Changing contours
of Financial Crises in Developing Countries
Financial Crises, Reserve Accumulation
and Capital Flows
Prabhat Patnaik
Continuity of Change?: Finance Capital in Developing
Countries a Decade after the Asian Crisis
C.P. Chandrasekhar
Crisis and Its Aftermath
in East and Southeast Asia
Adjustment, Recovery and Growth after
Financial Crisis: A Consideration of Five ‘Crisis’
Countries of East and Southeast Asia
Jayati Ghosh
Unchained Melody: Economic Performance after
the Asian Crisis
Edsel L. Beja, Jr.
Thai Capital after the Asian Crisis
Pasuk Phongpaichit &
Christopher Baker
Ten Years after the Crisis: A bright Future
for Capitalism in Thailand?
Bruno Jetin
Monetarist and Neoliberal Solutions in Indonesia:
Old Wine in New Bottles?
Rizal Ramli & P. Nuryadin
The Role of Foreign Capital in the South Korean
Financial Crisis and Recovery
Doowon Lee
The End of Developmental Citizenship?: Economic
Restructuring and Social Displacement in Post-Crisis
South Korea
Chang Kyung-Sup
Financial Liberalization, Crises and the Role
of Capital Controls: The Malaysian Case
Jomo K.S.
The Philippines Ten Years after the Asian Crisis
Joseph Anthony Lim
Economic Performance after Financial Crisis
in Other Emerging Markets
Latin American Financial Crises and Recovery
Jan Kregel
Patterns of Adjustment under the Age of Finance:
The Case of Turkey as a Peripheral Agent of
Neoliberal Globalization
Erinc Yeldan
Recovery and Adjustment after the 1998 Russian
Currency Crisis
Vladimir Popov
Other Asian Experiences
China and Post-Crisis Globalization:
Towards a New Developmentalism?
Dic Lo
Vietnam and the Experience of the Asian Crisis
Pietro Paolo Masina
Index
About the Authors
Jayati Ghosh and C.P. Chandrasekhar, the editors
of this volume, are both Professors at the Centre
for Economic Studies and Planning, School of
Social Sciences, Jawaharlal Nehru University,
New Delhi, India.
To order copies
of the book, please contact:
Tulika Books, 35 A/1 (Third Floor) Shahpur Jat,
New Delhi 110 049, India.
email: tulikadelhi@gmail.com
IPDA, 35 A/1 (Ground Floor), Shahpur Jat, New
Delhi 110 049, India.
email: ipd.alternatives@gmail.com
To buy copies of the
book online
please visit: www.scholarswithoutborders.in,
www.ipda.in
August 13, 2009.
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