Asian Crisis Research Articles

Sindh in Karachi: A topography of separateness, connectivity, and juxtaposition

From imperial ‘unhappy valley’, to decapitated province, commercial capital, and 21st century megacity, this article reflects on relations of separateness and connectivity between Sindh and its capital city Karachi. These culminated in Pakistan’s post-Independence years, in official and political language, governances of national, provincial and city division, and political rhetoric and violence. The article asks what else might be uncovered about their relationship other than customary alignments and partitions between an alien urban behemoth and a provincial periphery. It develops a topographical view to refer to the physical arrangement of environments but also people’s profane, spiritual and political connections and losses involving place and dwelling. This is expanded through examples of land appropriations involving urban real-estate development, environmental migrations and displacement, the idiom of the hijra and Sufistic devotion, and ethnic nationalist and religious extremism. The article questions ways losses of ground and attachment might unite people across provincial divides in an alternative, forward motion of cohabitation. It reveals a multi-layered historical tracing of ways that Sindh, as it is lived in Karachi and vice versa, digresses and wanders through deep cross-regional dynamics and developments. These create new departures from self and place, and rebuff the tendency to centre ‘other’ knowledges as the starting-point and epistemology for studies of Karachi and Sindh. Last, Karachi is a useful optic for thinking about continuities of colonialism and postcolonialism, crisis and fracture in South Asia; ways these are infused with planetary urbanization dynamics, and local, regional and national developments that resist easy universalism.

Water flow controller for precision agriculture

In recent years, water crisis in Asia is reaching an alarming proportion that might very soon attain the worldwide global crisis and there is an utmost need to save water. The water crisis occurs due to the increase of population, poor water harvesting, and water wastage in the manufacturing industries, process industries and agriculture sector. Therefore, each sector requires a mechanism to reduce the water wastage and save it for future needs. In this paper, an efficient irrigation system is designed to reduce the water wastage in agriculture fields. Due to the farmer’s irregularity and negligence, they leave the motor turned ON for several hours which will lead to wastage of water and more power consumption. Similarly, they forget to switch ON the motor, which also leads to the damage of crops due to insufficient water supply. The proposed system controls the flow of water in the fields in accordance with the intensity of sunlight and moisture content present in the soil. This system uses the microcontroller (Arduino UNO) assisted with LDR (Light Dependent Resistor), capacitive type moisture sensor and DHT 11 (temperature and humidity sensor). Based on the sunlight intensity and moisture content present in the soil, the Arduino UNO is programmed to turn ON/OFF solenoid valve connected to the pipeline that controls the flow of water in the agricultural fields. Thus the proposed system can operate automatically and supply water to the fields whenever needed without any human intrusion. Further, a Wi-Fi module ESP8266 is connected such that the solenoid valve can be operated manually through mobile phones/laptops based on the measured parameters if required.

Malaysia: 'Crouching Tiger, Hidden Dragon'

This paper metaphorically suggests that Malaysia could have been the 5th Asian Tiger if it were able to discover its special hidden talents as the idiom from the Chinese mythology “Crouching Tiger, Hidden Dragon” infers. Malaysia’s astounding economic track record (1985-96) underpinned by tamed inflation and high future prospects fell short of expectations in the late 1990s. Malaysia’s autocratic leaders and their instability-inflicting policies augmented uncertainty and undermined any potential recovery efforts in the aftermath of the homegrown Asian crisis of 1997-98. As a result, Malaysia’s promising outlook had abruptly shifted from being a model for the future to Asian myth. Malaysia’s GDP contracted mindboggling -7.4% in 1998 after averaging 9.2% in the period of 1992-96. The unthinkable shrinkage in the steady state output amounted to a loss of about $30 billion, the country’s GDP declined from $101 billion in 1996 to $72.2 billion in 1998. Malaysian people become a lot poorer after the crisis; the per capita income was $4,797 in 1996 as opposed to $3,264 in 1998, a decline of $1,533 in per capita income. Malaysia managed to escape the severe impacts of the near global financial meltdown with a minor dent; unlike the contraction observed in 1998 (-7.4%), Malaysia’s GDP dropped from 6.3% to 4.83% (2007-08) before contracting -1.51% in 2009. Despite the transparent and open economy (ranked 16th place in 2008 GCI) plus fast rise in the Human Development Index ranking (61st out of 190 countries in 2018), Malaysia’s heavy reliance on exports and its elongated addiction to the U.S. dollar made it become more prone to financial, currency, trade, and economic crises. The propagation of contemporaneous crises since the late 1990s have distinctly proved that Malaysia is hardly immune to shocks resulting from the slower economic growth in China and monetary normalizations in Europe and the U.S. which are causing interest rates to rise and exchange rate pressures to increase. Although the remarkable transition of Malaysia into a middle-income country was rather easy fostered by unusually favorable macroeconomic environment, but it seems to have been stuck in the middle-income trap and the next major economic leap to achieve a high-income status will require so much more than cheap labor and “mobilization of resources” based on “perspiration rather than inspiration”. Malaysia is struggling to figure out how to develop comprehensive skills which are essential to support future economic growth. Another problem is that educational institutions in Malaysia are not well aligned with industries to meet their demands; furthermore, a seamless coordination as well as collaboration between them is missing. Accordingly, a decade after the 2008 global financial crisis, Malaysia ranks 44th in pillar 4 (Health and Primary Education) and 41st in pillar 5 (Higher Education and Training). Malaysia also ranks 43rd in pillar 9 (Technological Readiness) due to a lack of lifelong learning programs, weakness in Technical and Vocational Education and Training (TVET), and unready for disruptive technologies. Without significant improvements in these, Malaysia will remain in the middle-income trap.

DECENTRALIZATION AND CORRUPTION IN POST-1998 CRISIS ASIA IN IMF ASSISTANCE RECEIVER COUNTRY

Rapid action must be taken by countries to handle the 1998 Asian crisis, one of which is through IMF loans, hopefully by promoting economic development. Unfortunately, IMF recipient countries must adjust the prescription of good governance ala IMF is identical to decentralization, as a result the power from the central government is distributed to the regional government. The presence of this prescription makes corruption still exist even more extends to the regional level. The article argues that the conditions of corruption in several Asian countries that receive IMF assistance still exist, even extending to the regional level where this is closely related to the IMF prescription which is identical to the concept of decentralization. This article focuses on several IMF recipient countries, namely Thailand, South Korea, the Philippines and especially Indonesia. This article uses a qualitative research method with a case study approach. In conclusion, the application of this concept, checks & balances must be further improved because power is distributed to the regional level so that corruption in the country becomes more resolved.

Essay on Finance-Growth Nexus

Abstract There is a long tradition in literature that banks can play a special role in the propagation of economic fluctuations. Theory suggests many channels through which financial system affects, and is affected by, economic growth. One of the most important empirical studies on this topic shows a strong positive relation between financial development and economic growth. However, the hypothesis that credit expansion is the main development instrument was challenged in the Asian crisis in the second half of the 1990s, and then even more strongly in the crisis after 2008 which was followed by almost a decade of economic stagnation. Development of the banking sector in Southeast European countries in the pre-crisis period was characterized by relatively high credit growth rates and, consequently, with an increase of the credit-to-GDP ratio. Some authors argue that the marginal effect of financial depth on economic growth becomes negative when credit to the private sector reaches about 100% of GDP. Taking into account relatively low level of credit-to-GDP ratio, we may assume that there is still enough room for finance to contribute to economic growth in Southeast European countries.

Towards a Sustainable Future: Addressing Climate Change, Reforestation, and the Aral Sea Crisis with Econometric Models

This paper offers an all-encompassing examination of the numerous challenges Earth faces, such as climate change, deforestation, pollution, and regional ecological catastrophes like the Aral Sea crisis in Central Asia. It stresses the importance of individuals, communities, and organizations adopting sustainable practices and aligning with global strategies, like the United Nations (UN) Sustainable Development Goals (SDGs), to preserve the planet for future generations. The paper also underscores the significance of reforestation initiatives and the role of econometric models, such as the Environmental Kuznets Curve and panel data models, in evaluating environmental policies and guiding sustainable development. Statistical data, case studies, and innovative solutions are incorporated to demonstrate the urgency of addressing these challenges and to provide evidence-based strategies for a sustainable future.

Seasonality in the Thai stock market: The lottery effect

This study focuses on the influence of the lottery day effect in the Thai stock market. Daily stock index of the Stock Exchange of Thailand (SET) from January 1, 1990 to October 3, 2018 are used to examine the impact of the lottery effect on the return and volatility of the stock indices. For robustness test, we also investigate this effect in three periods, the Asian financial crisis period, the global crisis period, and the whole period. Using the GARCH(1,1) and TGARCH(1,1) models, the results show that there is the persistence of volatility and volatility patterns of clustering, asymmetry and leverage effect in the Thai context. The results significantly suggest that lottery day is priced as a systematic risk factor in the Thai stock market and plays an important role to predict the future returns and volatility for the Asian crisis period.

Case Analysis: Enron; Ethics, Social Responsibility, and Ethical Accounting as Inferior Goods?

In 2001 soon after the Asian Crises of 1997-1998, the Dotcom Bubble, 9/11, the Enron crises triggered a fraud crisis in Wall Street that impacted the market to the core. Since then scandals such as the Lehman Brothers and WorldCom in 2007-2008 and the Great Recession have surpassed it, Enron still remains one of the most important cases of fraudulent accounting. In 2000’s even though the financial industry had become highly regulated, deregulation of the energy industry allowed companies to place bets on future prices. At the peak of the dotcom bubble Enron was named as a star innovator but when the dotcom bubble burst, Enron’s plan to build high speed internet did not flourish and investors started to realize losses. Furthermore, the financial losses of the operations were hid using the market to market accounting technique instead of book value and using special purpose entities to hide debt. The root cause that was identified as a company with a toxic corporate culture focused on officer compensation rather than social responsibility and hence faulty leadership. Is it possible then that; ethical accounting practices, social responsibility and ethics all become inferior goods as income rises in an ‘irrationally exuberant’ era?

Widening Development Gaps between ASEAN-5 and Advanced Nations

This paper examines ASEAN-5 economies through the components and structure of the WEF’s Global Competitiveness Index (GCI) and the UNDP's Human Development Index (HDI). The paper shows a close correlation between the results of both indexes for ASEAN-5 countries and their GDP growth. We believe that most measurements of stability focus on financial and economic indicators and are often blind to many important social aspects of human developments. For a more complete analyses, the study has taken into account the components of two popular indexes; under the GCI, we examined the economies of ASEAN-5 for a total of 114 indicators that are grouped into 12 pillars which are then organized into three sub-indexes such as basic requirements, efficiency enhancers, and innovation and sophistication factors; under the HDI, the study evaluated ASEAN-5 economies for three specific capabilities: health, education, and a decent standard of life. The deterioration in the rankings of both GCI and HDI across ASEAN-5 was also reflected in their GDP performances during 2010-2011; as a result, Indonesia’s GDP declined from 6.4% to 6.2%, Malaysia from 7.5% to 5.3%, Philippines from 7.6% to 3.7%, Singapore from 14.5% to 6.3%, and Thailand’s GDP contracted from 7.5% to 0.8% (i.e. worst since the Asian crisis). The global financial crisis of 2008, sovereign debt crisis in Europe, and the taper tantrum in May 2013 had agonizingly proved that the banking sectors and national currencies of ASEAN-5 are still not immune to adverse developments in Japan, Europe, and the United States (i.e. monetary tightening and the trade war with China).

Capital Outflow Waves in the Korean Economy during Financial Turmoil: Its Implications and Policy Suggestions

Purpose – This paper investigates whether financial crises could be the indicators of capital outflow waves or vice versa in Korea. Korea has experienced two severe financial crises, which are the Asian Crisis and the global financial crisis. Although there were many variables associated with these two remarkable events, one notable variable was gross capital outflows, which had significantly increased around them. Motivated by existing literature which built theoretical frameworks explaining the relationship between capital flight and financial crises, we examine the empirical evidence for this relationship. Design/methodology – We use panel data from 61 countries including Korea from 1980 to 2009 to study the associations between capital flight and diverse financial crises such as banking, currency, debt, and inflation crises. To be specific, we use the complementary log-log model to see whether capital outflow waves are reliable indicators for domestic financial crises. Findings – The results show, first, that banking, currency, and inflation crises are associated with capital flight. Second, debt crises are also associated with capital flight, but the result is not robust to different specifications. And, third, the positive associations between capital flight and crises are mainly driven by banking flows rather than FDI and portfolio flows. Originality/value – This paper is one of a few studies that investigates domestic (not foreign) investors’ behavior during financial turmoil. Furthermore, theoretical studies which provide contradictory explanations on the movements of gross capital outflows during financial crises emphasizes the importance of empirical evidence in this paper.

What Have We Learned of Asian Crisis?

What Have We Learned of Asian Crisis?

Foreign Portfolio Investment And Macroeconomic Factors In India

Foreign Portfolio Investment (FPI) is a part of worldwide capital flows comprising of put out of monetary assets such as currency, supply or bonds across global borders in wish for earnings. FPI is a sole entity, which either boosts or impedes Indian economy and savings approach with each of momentary waft. For the period of behind 1980s and near the beginning 1990s portfolio savings emerged as a most essential type of resources inflow to growing countries. The consequence of portfolio savings to budding countries has arrived downward once the East Asian crisis of 1997. On the additional, most other emergent countries, India is at a standstill more reliant in the lead of Foreign Portfolio Investment (FPI) than Foreign Direct Investment (FDI) as a resource of foreign investment. Foreign Portfolio Investment inflows and outflows have a direct impact on Indian economy. One of the majority imperative features of the expansion of Indian economy in the last twenty years has been the mounting participation of FPI. Portfolio investment being an immediate verity it displays the Indian economy influence instantly. The aim of this revise is to check the relationship between Foreign Portfolio Investment (FPI) and select macroeconomic Indicators in India.

Finansal Krizler ve Asimetrik Enformasyon: Asya ve Meksika Krizleri

The problems arising from asymmetric information in financialmarkets prevent the efficient functioning of these markets and preventfinancial markets from transferring funds to the most efficient investmentprojects. The existence of asymmetric information, which negatively affects the efficiency and productivity of both financial and non-financialinstitutions, is an important factor in economic failures and financialcrises.In this study, the concept of asymmetric information will be discussed.Asymmetric information factor in financial crises and its role incrises will be evaluated. 1994 Mexico and 1997 Asian crises will beanalyzed in terms of asymmetric information.

Testing Structural Break in the Relationship Between Exchange Rate and Macroeconomic Variables

The article aims to study the relationship between those macroeconomic factors that the affect (INR/USD) exchange rate (ER). Time series data of 40 years on ER, GDP, inflation, interest rate (IR), FDI, money supply, trade balance (TB) and terms of trade (ToT) have been collected from the RBI website. The considered model has suggested that only inflation, TB and ToT have influenced the ER significantly during the study period. Other macroeconomic variables such as GDP, FDI and IR have not significantly influenced the ER during the study period. The model is robust and does not suffer from residual heteroscedasticity, autocorrelation and non-normality. Sometimes the relationship between ER and macroeconomic variables gets affected by major economic events. For example, the Southeast Asian crisis caused by currency depreciation in 1997 and sub-prime loan crisis of 2008 severely strained the national economies. Any global economic turmoil will affect different economic variables through ripple effect and this, in turn, will affect the ER of different economies differently. The article has also diagnosed whether there is any structural break or not in the model by applying Chow’s Breakpoint Test and have obtained multiple breaks between 2003 and 2009. The existence of structural breaks during 2003–2009 is explained by the fact that volume of crude oil imported by India is high and oil price rise led to a deficit in the TB alarmingly, which caused a structural break or parameter instability.

Study on transnational environmental damage along the belt and road and its enlightenment on international energetic policy

This paper selects the most tabular areas of Central Asia and Southeast Asia along the route of Belt and Road Initiative and analyzes the causes and current situation of the cases of transnational environmental damage in the two regions. Through the data and charts, this paper sums up the present situation of the co-existence of nuclear pollution and Aral Sea crisis in Central Asia and the serious pollution of water resources caused by frequent fire in Southeast Asia. And this paper analyzes the impact of this environmental situation on the formulation and implementation of energy policy along the Belt and Road.

W kierunku instytucjonalnej teorii kryzysu

This paper aims to compare the approach of political science and that of the economy to the phenomenon of crisis. The author focuses on the analysis on the following issues: (1) the developmental challenge; (2) the structural challenge; (3) crisis management; and (4) the political legitimacy of anti-crisis measures. The major case studies analysed in the paper include the Eurozone crisis and the Asian crisis between 1997 and 1998.

IMPACT OF FINANCIAL CRISES ON THE DYNAMICS OF CAPITAL STRUCTURE: EVIDENCE FROM KOREAN LISTED COMPANIES

This study examines the impact of the 1997 Asian financial crisis and the 2008 Global economic crisis on the capital structures of Korean non-financial listed companies. Using a panel data covering 1,159 Korean listed non-financial firms from 10 industrial sectors over a 31-year period (1985–2015), this study investigates the patterns of firms’ capital structures before and after the crises and identifies their speeds of adjustment toward the optimal leverage. This study finds different effects of the two crises on both capital structures and adjustment speeds. The average debt ratio fell significantly after the 1997 Asian financial crisis. The distance between the optimal and the observed debt ratios shrank after the Asian crisis, while the speed of adjustment increased two-fold. Unlike the Asian financial crisis, the global economic crisis of 2008 had a positive effect on companies’ debt ratios and the speeds of adjustments toward the optimal leverage. Our empirical analysis shows that, on average, the Korean non-financial listed companies decreased their debt ratios over the entire period of observation, with the leverage being the highest before the Asian financial crisis and lowest after the global economic crisis. Our results also show that the debt ratios of Korean chaebols were higher than that of non-chaebols. Moreover, we find that the high level of leverage of Korean firms was associated with tangible assets, income variability, size and age of the firm, non-debt tax shield and uniqueness.

EFEKTIFITAS PENERAPAN STRATEGI MANAJEMEN ACCOUNTING DAN STRATEGI BAURAN PEMASARAN DALAM MENINGKATKAN PANGSA PASAR DAN PROFITABILITAS (STUDI KASUS PT ARNOTT’S INDONESIA)

Asia crisis in 1997 in 1997 infected many countries arround Asia, and many companies had to have an excelent corporate strategies in order for them to be survived in that tough situation. Those strategies should be continues strategies, which represented all value chain activities both primiry and supporting activities activities within the company. Than that value chain will be a competitive advantage and key success factor for the company because it is a blend of excellent strategies, which has an objective to achieve company goal and to be survived in crisis or in hard situation. PT Arnott Indonesia as subsidiary of multi national company, which is Arnott’s Australian Ltd, the pressure to be survived in biscuit industry is enormous. Thus, the company needs to have excellent strategies in each value chain activities and combine all those strategies into one corporate strategy that can be used to compete with all competitors within rhe biscuit industry. Management accounting and marketing strategies should be integrated and supported onewith each other.In additio,it has to be an activity that controlled all primary activities within Arnott’s Indonesia value chain. In conclusion this article isdisscussed about the role of management acoounting in PT arnott’s Indonesia in supporting company objectives and goals particulary activities thar are related with the marketing

Enhanced flood risk with 1.5 °C global warming in the Ganges–Brahmaputra–Meghna basin

Flood hazard is a global problem, but regions such as south Asia, where people’s livelihoods are highly dependent on water resources, can be affected disproportionally. The 2017 monsoon flooding in the Ganges–Brahmaputra–Meghna (GBM) basin, with record river levels observed, resulted in ∼1200 deaths, and dramatic loss of crops and infrastructure. The recent Paris Agreement called for research into impacts avoided by stabilizing climate at 1.5 °C over 2 °C global warming above pre-industrial conditions. Climate model scenarios representing these warming levels were combined with a high-resolution flood hazard model over the GBM region. The simulations of 1.5 °C and 2 °C warming indicate an increase in extreme precipitation and corresponding flood hazard over the GBM basin compared to the current climate. So, for example, even with global warming limited to 1.5 °C, for extreme precipitation events such as the south Asian crisis in 2017 there is a detectable increase in the likelihood in flooding. The additional ∼0.6 °C warming needed to take us from current climate to 1.5 °C highlights the changed flood risk even with low levels of warming.

Analisis Peran IMF terhadap Fenomena Inflasi tahun 1997-1998 di Negara Thailand

Monetary crisis in Asia is a condition when the huge inflation takes place in almost all of the Southeast Asia countries. Thailand become pioneer of monetary crisis in Asia. The value of the country's currency in Thailand fell due to the government decision in adopting managed-float exchange policy of Baht currency to the Dollar America. This led the government to take the decision for seeking a help from IMF in order to recover their economic stability. However, this attempt became more complicated as a consequence of IMF regulation. IMF could not provide a solution to recover economic crisis as some of the parties disagree with the financial support by providing loan for Asia countries. The inflation also was one of the reasons behind of IMF incapability to provide solutions tackling this issue. Therefore, this paper has the aim to investigate the role of IMF towards the inflation issue in Thailand in 1997-1998. The method used to collect data is to use Internet based research with data analysis techniques using qualitative descriptive methods. The results of this study are that the IMF issued several policies including Monetary Tightening Policy, Fiscal Austerity, and Application of Letter of Intent.