The East Asian Model of Economic Development and Developing Countries

Abstract

One can argue that the Asian financial crisis of 1997 - 1998 and the rapid economic growth of eight East Asian countries economies, often called the East Asian miracle is now seen as one of the most significant economic events in recent world history. This paper focuses the East Asian tiger's successful economic stories that became a role model for many developing countries. This paper will discuss the WB and IMF's role in the East Asian financial crisis and the paper analyses the steps taken and mistakes done to reach a solution by International Monetary Found (IMF). IMF provides temporary financial assistance to help countries to handle the situation. The paper focuses on the issue that did IMF play crucial roles or worsen the crisis. The first section of the paper will set a brief historical background about the existence of East Asian crisis, and consequences. Also, in this part being a role model to other developing countries will be discussed. The second section of the paper examines the role of the International financial Institutions (IFIs) such as IMF and IBRD analysis. The third and final part of the paper focuses the aftermath of the East Asian financial crisis from liberalizes market to standardize the market. (C) 2014 The Authors. Published by Elsevier Ltd. Selection and peer review under responsibility of Organizing Committee of BEM 2013.