Financial Hypocrisy

A decade after the 1997 East Asia crisis, the consensus that emerged on the need for fundamental reform of the global financial architecture has led nowhere. So it is not surprising that the world is once again facing a period of global financial instability, with uncertain outcomes for the world’s economies.

This year marks the tenth anniversary of the East Asia crisis, which began in Thailand on July 2, 1997, and spread to Indonesia in October and to Korea in December. Eventually, it became a global financial crisis, embroiling Russia and Latin American countries, such as Brazil, and unleashing forces that played out over the ensuing years: Argentina in 2001 may be counted as among its victims.