· Taiwan:§ The Hong Kong stock exchange is the sixth largest inthe world with a market capitalization of about US $ 3.732 trillion§ The GDP is $319.7 billion at current market prices§ Foreign exchange reserves to US$ 408 billion approximatelyas of mid-2017§ Hong Kong does not have public debt, a sound banking system and a strong legal system§ The 2017 Index of Economic Freedom lists Hong Kongas the number 1 nation with the score of 8.97· Hong Kong:§ It is the 14th largest exporter in theworld§ It is the 2nd largest foreign investor inIndia§ It was rated as the world’s most expensive city forthree consecutive years by the Economist Intelligence Unit in 2016§ It is ranked as the freest economy in the world bythe 2015 Index of Economic Freedom§ GDP per capita is $93678 million and ranks the 3rdhighest§ It ranks 5th on the United Nations HumanDevelopment Index§ The GDP is estimated to be approximately around $537.
447billion and is ranked 39th among other countries· Singapore:· South Korea:(VI) CURRENTSITUATION: · Increase in theGDP growth of · Increase inforeign trade relations I the form of wide spread exports· The provision ofbetter education facilities· Enhancement oftransport and communication services· Freedom frominternal controliv) Taiwan: Taiwan isone of the countries that was not majorly affected by the Asian Financial MarketCrisis of 1997. The formulation of policies was done keeping in mind thefollowing aims: · Stability in theinterest rates· Recovery of thestock market· Emphasis on thetourism sector· Increase inexternal trade (majorly exports)· Decrease in theunemployment level existing in the country· Rise in the GDPgrowth rateiii) Hong Kong: Thecountry that was enormously affected by the Crisis was Hong Kong. The countryhad to undergo various policies formulated by the government. The primarypolicy objective was to maintain the exchange rate stability within theframework. The formulated polices aimed at:· Financial sectorreforms· Fiscal and costcutting measures· Exchange rate depreciationii) Singapore: The policyformation of the Singaporean government aimed at lower business costs and toprovide relief to individuals and households. The 1998 budget included measuresto help in reducing the business costs. The policies undertaken by the Singaporean are as follows: · To strengthen thecorporate governance of financial institutions.
· To promotecapital account liberalization· To reduce moralhazards· To strengthenthe prudential regulation· To rehabilitate thefinancial sector· To strengthenthe legal and regulatory infrastructurei) South Korea: Thecrisis in Korea occurred due to excessive external debt. In order to correctthis liquidity crisis, a rapid injection of money in the economy as anecessity. The IMF agreed to lend Korea a sum total of $58.4 billion.
The reformsundertaken by the Korean government aimed at the following:(V) FORMULATEDPOLICIES: Thereport focuses on the economic situation of Hong Kong in the year 1997-1998 asa result of the financial crisis in the Asian economies in 1997 has createdtremendous interests in the economic point of view.The Effect In Hong Kong’s Economy After The AsianFinancial Crisis Thispaper examines the roots of Singapore’s resilience and assesses Singapore’spolicy responses to the crisis. (Ngiam Kee Jin, 2000)Coping with the Asian Financial Crisis: TheSingapore Experience Thisarticle studies the interaction between two important factors influencing thedeflationary pressure on the Hong Kong economy since 1997. (Yue-Chim RichardWong, June 2002)The Asian Financial Crisis, Economic Recession andStructural Change in Hong Kong Thepaper studies the impact of the Asian Financial Crisis on Singapore and theeffects of the policies proposed in order to correct them.
The areas of concernwere wage reduction, domestic demand stimulation, and exchange rate policies.(Mahindra Sriwardana, Dec 2015)Effects of the AsianEconomic Crisis on Singapore and Its Policy Responses: A General EquilibriumAnalysis It states that the financial crisis leadto economic slowdowns in several countries but Singapore was not directlyaffected and the various measures undertaken by the government to help ease thecost burden. (Valerie Chew)AsianFinancial Crisis (1997-1998) Thisarticle talks about the way Taiwan adopted itself to the effects of the Asian FinancialCrisis of 1997. Even when Taiwan’s economy was affected by the devaluation ofthe Thai Baht the economic growth was of 6.7%. (January, 1998)Taiwan and Asian Financial Crisis Thispaper shows impact of the Asian financial crisis of 1997on South Korea andTaiwan and the government’s strong intervention in the economy’s functioning toovercome the effects.
(JoonS Kil, 2004)Korea, Taiwan, and the Asian financial crisis:Domestic institutional differences and impact of external pressure forliberalization(IV) LITERATUREREVIEW: Key words: Asian Financial Market Crisis, impact, policiesformulated, current situation· The currentsituation of the 4 Asian Dragons· The policiesformulated by the dragons to overcome this effect· Impact of the AsianFinancial Market Crisis (1997) on the Four Asian Dragons· The Asian FinancialMarket Crisis(1997)Thedissertation on the Asian Financial Market Crisis and its impact on the FourAsian Dragons endeavors the:(III) OBJECTIVES:Key words: devaluation,Thai Baht, Philippines, Laos, Malaysia, China, Brunei, Indonesia, Hong Kong,Vietnam, economic growth, unemploymentTheeconomies of Asia were recovering by the year 1999. The financial crisis hadmade the economies to develop more towards the financial stability and supervisiontowards finance.Theeffect on the Hong Kong economy was the worst in comparison to the Asian countryeconomies, The GDP reduced by 5.5%. The economy of the country wobbled for thenext five consecutive years.
Theeconomic growth of Singapore drastically reduced from 8% (1997) to 1.5% (1998).In the Singaporean labor market, unemployment rose to 3.2% that accounts toabout 62,800 people. Manufacturing, commerce, construction transport andcommunications sectors performs extremely inefficiently. It impacted thecurrency of the country adversely.
It also led to a fall in the prices ofassets, weakening of the financial and corporate sectors. Theeconomic growth of South Korea had slowed down, the prices of various productsbegan to rise and so did the imports. The initial reaction of the stock marketand currency market was in favor of Korea with an increase of 7% but graduallyled to a stock market decline by 49% and the currency had to be depreciated by65.9%. The unemployment level rose from 2% to 8.7%.The elimination of subsidiesto the export and the quick liberalization of the imports took place in Korea.Although,the governments of Asian countries had better fiscal policies, theInternational Monetary Fund (IMF) had taken initiative to introduce a programwhich was known as the $40 billion program which aimed at stabilizing thecurrencies of the countries like South Korea, Thailand and Indonesia and othereconomies which were particularly affected by the financial crisis.
Thedevaluation of the Thai Baht had a domino effect, the Malaysian Ringgit,Indonesian Rupiah and the Singapore dollar weakened. Taiwan,South Korea and Singapore were the main counties which were mostly affected bythe crisis. The financial crisis also had affected and hurt many othercountries like Philippines, Laos, Malaysia, China, Brunei, Indonesia, Hong Kongand Vietnam. Many countries in the south east gave rose to private debt.
Thailand’scurrency was devalued on July 2 1997 with regard to the US dollar. With thedevaluation of the Thailand currency which was over the months had led todevelopment of over pressure which subsequently impoverished Thailand’sofficial foreign exchange reserves. In the following months the overheatedeconomy had collapsed because of the highly speculated the real estate marketstructure, equity and Thailand’s currency (Thai Baht) had weakened a lot whichled to major difficulties such as crisis in the banking sector and balance ofpayments .(II) INTRODUCTION: Key words: Asian Financial Market Crisis (1997), government, Taiwan,Hong Kong, Singapore, South KoreaTheoutbreak of the Asian Financial Market Crisis (1997) has a persistent impact onthe economies of the Asian countries. This dissertation tries to portray theimpact of the Asian Financial Market Crisis of 1997 on the Four Asian Dragoncountries namely South Korea, Taiwan, Hong Kong, Singapore and how the governmentsof these countries formulated policies to efficiently overcame these impacts.