The World Bank released a report on the current global crisis. It highlights the situation on East Asia and Pacific.
As I noted in previous my post, both developed and developing countries are trying to deal with the crisis. Even the 20 countries of world biggest economic power have meet in London Summit to develop new collaboration steps for halting the recession.
At the same time, some organizations were proposing green stimulus packages. Within the stimulus plan, the issues of employment generation in green sectors are addressed. Hopefully more countries adopted the proposal as well.
Back to current global crisis, below some facts of differences with financial crisis occurred in 1997-1998:
Facts on current global crisis
- The crisis started in US and developed economies but has affected all countries in the world
- Commodity exporters are suffering because of a drop in prices and global demand
- East Asia currencies has weakened at least 10% since the end of 2007
- Many countries in Asia have strong foreign exchange reserve
As comparison below are facts of Asian financial crisis 1997-98
- The crisis started in region but affect some countries modestly to severely
- Commodity exporters were enjoying high prices because of robust global demand
- Some Asia countries experienced depreciation up to 111%
- Many countries in region suffered by depleted foreign exchange reserve
- Joseph Stiglitz: The US Federal Reserve is drink-driving on America’s road to recovery
- Indonesia Plans Stimulus (nytimes.com)