Question

Q1. What happened to the most successful emerging market in terms of growth and gains in living standards? (East Asian country based/ After the Asian financial crisis)

Q2. What are the noticeable changes in the East Asian economics structure since then(Asian financial crisis) ?

Answer 1

Q1. South Korea is the most successful emerging market in terms of growth and gains in living standards.

The Asian financial crisis knocked down the country's GDP by over six percent in 1998. The stock market lost more than 15%. The country had to borrow $58.4 billion bailout package from the IMF.

The crisis led the country to take various measures to strengthen its financial sytem. Many inefficient companies were taken over or merged. Non - performing loans of the banks increased drastically. IMF's bail-out package included reforms such as allowing FDI in companies from 26% to 100%. Due to the crisis per capita GDP fell by more than 50%.

However, after the crisis the country emerged stronger financially as well as economically, due to right policies adopted by the government and today the country is one of the most advanced economy in the world, with seventh largest exports and imports, country is a major global player, economically.

( b )

Some of the most noticeable changes are the financial sector reforms taken by the government, sustained increase in nominal and per capita GDP, and a more advanced and modern economy which is much more resilient than what it was in 1998 during the crisis