ABSTRACT
The East Asian financial crisis first developed in Thailand in July 1997, quickly spread to Malaysia and Indonesia, and ultimately landed in the Republic of Korea (hereafter Korea). After two years, the crisis-inflicted economies have been somewhat stabilised as a result of IMF rescue plans and restructuring efforts. But the contagion has had a devastating social and economic impact in the region. It has also affected domestic politics and regional security. After two years in painful economic debacle, we are still left with fundamental questions. Why were only certain countries hit by the contagion while others escaped? What was the ultimate cause of the financial crisis? How can we assess the various restructuring programs pursued by the crisis-inflicted governments?
