ABSTRACT
Crisis conditions in emerging market countries have abated. The turmoil of 1997–8 has receded—exchange rates and financial markets in crisis-affected countries have recovered, interest rates have declined and positive growth rates (notably in some East Asian countries) emerged in the second quarter of 1999. The improvement in macro fundamentals is encouraging. On the other hand, the pace of reform remains slow—comprehensive corporate and financial sector restructuring has yet to be undertaken. The fact that market recovery has occurred ahead of structural reform should not obscure the fact that many of the problems which contributed to the recent crisis have yet to be addressed.
