Debt and the Global Economic Crisis of 1997/98/99
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- This page: http://www.globalissues.org/article/32/debt-and-the-global-economic-crisis-of-19979899.
- To print all information (e.g. expanded side notes, shows alternative links), use the print version:
The structural adjustment measures, global, unregulated free markets, lack of protection for emerging economies, and debt all contributed to the global economic and financial crisis in the late 1990s. It saw stock markets stumble, economies collapse, unemployment and poverty increasing (and western nations and institutions made sure that the IMF “rescue” packages would help get their money back, while structurally “adjusting” the affected nations).
This had an impact on everyone from Asia to Russia, Latin America and Africa. (The link on Africa is the United Nation's Secretary General, Koffi Annan’s, report on the region about the causes of conflict, peace resolution, sustainable development etc. I have included it here to show an example of how the lending institutions have not really helped in realizing a free democratic Africa.)
Towards the end of the 1990s, even the mainstream media's reporting on the global financial crisis can warrant criticism. Their phrases used (an Asian Financial Crisis, crony capitalism which was the fault of people in the affected countries and so on), their angles portrayed, the influences of western corporations etc. all resulted in coverage that tended to implicitly, sometimes explicitly, blame others. It came over as though excuses and other explanations had to be provided so as not to let us imagine that some of the root causes would ever come from the home-grown “prescriptions.” The following quote provides another way to look at it:
While various Asia/Pacific countries are in the process of recovering, they must learn the lessons of the financial crisis by relying on domestic roots for growth, diversifying exports and deepening social safety nets, says a United Nations Economic and Social Survey of Asia-Pacific report. It is interesting to note that this is opposite of the processes prescribed by nations such as the United States and organizations such as the WTO, IMF and World Bank, that prefer more liberlization and opening up of countries to allow foreign investment to be easier (and allowing pull outs to be easier -- which is what happened in this crisis in the first place.) For a summary of the UN report, you can also read this news article.
- Causes of the Debt Crisis
- The Scale of the Debt Crisis
- The Heavily In-debt Poor Countries Initiative is Not Working
- Debt Cancellation and Public Pressure
- Debt and the Global Economic Crisis of 1997/98/99
- Debt and the Effect on Children
- Debt and the Environment
- G8 Summits: Empty promises each year
- Third World Debt and Disaster Recovery
- Poverty Links for More Information
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