ASIAN DRAMA - 3 CRISES IN ASIA

Economically, 1997 appeared to be Asia's Annus Horribilis, and the art icle is an analysis of the economic turmoil in East and Southeast Asia . It is emphasised that the region is not plagued by one, but by three crises; a financial crisis, an exchange rate crisis and an economic c risis. The depreciation of the Thai currency in July 1997 marked the b eginning of the regional crises. However, this happened against the ba ckdrop of large structural weaknesses in several economies in East and Southeast Asia. A common feature was the high short-term foreign debt of banks and companies, denominated in foreign currency. The financia l and currency crises reinforced each other, and were amplified by fin ancial panic among local and foreign investors. The article analyses a nd traces the development of the various crises, explaining why the pr oblems spread to neighbouring countries.