...Contemporary Eastern Asia ISSN 2383-9449 Fumitaka Furuoka, Beatrice Lim, Catherine Jikunan and Lo May Chiun (2012) Economics Crisis and Response: Case Study of Malaysia’s Responses to Asian Financial Crisis Journal of Contemporary Eastern Asia Vol. 11, No. 1: 43-56 Journal abbreviation: J. Contemp. East. Asia Stable URL: http://eastasia.yu.ac.kr/documents/Fumitaka_11_1.pdf www.JCEA-Online.net Open Access Publication Creative Commons License Deed Attribution-No Derivative Works 3.0 Journal of Contemporary Eastern Asia, Volume 11, No.1: 43-56 http://dx.doi.org/10.17477/jcea.2012.11.1.043 Economics Crisis and Response: Case Study of Malaysia’s Responses to Asian Financial Crisis Fumitaka Furuoka, Beatrice Lim, Catherine Jikunan and Lo May Chiun The paper chooses the “Asian Financial Crisis” as a case study to examine its impact on Malaysian economy and describes how Malaysian government responded to the crisis. It also focuses on the Asian financial crisis’ impact on the employment of banking sector in Malaysia. In the finance, insurance, real estate and business service sector, a number of 6,596 workers were retrenched. Banks were forced into mergers and acquisition as well as downsizing, trim lean, organizational changes and introduction of new technologies. Excess workers were offered a “voluntary separation scheme.” These retrenched workers became the urban poor facing high cost of living and no opportunity for jobs as there is no safety net provided. 1. Introduction The economic...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening Benefits from Globalization Constrains to the developing countries The “unequal footing” A common cause of Asian crises: “incompatible opening” The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” Will the quick market liberalization solve the problems? Reforms and opening “Compatible opening” vs. “sequencing” Timetable for opening? No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening ¾ Benefits from Globalization ¾ Constrains to the developing countries ¾ The “unequal footing” ¾ A common cause of Asian crises: “incompatible opening” ¾ The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring ¾ Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” ¾ Will the quick market liberalization solve the problems? ¾ Reforms and opening ¾ “Compatible opening” vs. “sequencing” ¾ Timetable for opening? ¾ No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...of the earth; Atmospheric circulation; atmospheric stability and instability. Planetary and local winds; Monsoons and jet streams; Air masses and fronto genesis, Temperate and tropical cyclones; Types and distribution of precipitation; Weather and Climate; Koppen’s, Thornthwaite’s and Trewartha’s classification of world climates; Hydrological cycle; Global climatic change and role and response of man in climatic changes, Applied climatology and Urban climate. iii) Oceanography : Bottom topography of the Atlantic, Indian and Pacific Oceans; Temperature and salinity of the oceans; Heat and salt budgets, Ocean deposits; Waves, currents and tides; Marine resources: biotic, mineral and energy resources; Coral reefs, coral bleaching; sealevel changes; law of the sea and marine pollution. iv) Biogeography : : Genesis of soils; Classification and distribution of soils; Soil profile; Soil erosion, Degradation and conservation; Factors influencing world distribution of plants and animals; Problems of deforestation and conservation measures; Social forestry; agro-forestry; Wild life; Major gene pool centres. v) Environmental Geography : Principle of ecology; Human ecological adaptations; Influence of...
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...1. Population of Indonesia With a population totaling around 250 million individuals, Indonesia is the fourth largest country with regard to population size. Its ethnic composition is characterized by a wide variety as the country contains hundreds of different ethnic groups and cultures. However, more than half of the population can be classified as belonging to the two main ethnic groups: Javanese (41 percent of the total population) and Sundanese (15 percent of the total population). Both these groups originate from the island of Java, Indonesia's most populous island, which contains almost sixty percent of the country's total population. When the island of Sumatra is included, this figure rises to approximately eighty percent of Indonesia's total population, indicating a significant population concentration in the western part of the country. The most populous province is West Java (with more than 43 million people), while the least populous province is that of West Papua in the far eastern region of Indonesia (having around 761,000 people). Map of Indonesia Five Most Populous Provinces (in millions) Province | Population | 1. West Java | 43.1 | 2. East Java | 37.5 | 3. Central Java | 32.4 | 4. North Sumatra | 13.0 | 5. Banten (Java) | 10.6 | Source: Statistics Indonesia Population Census 2010 This section discusses a number of important aspects regarding Indonesia's demographic composition...
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...How Rural-Urban Migration Contributes to the Development of a Megacity: A case from Bangladesh Abstract Like other developing countries, rural-urban migration is the prime reason of developing megacity in Bangladesh. It is the most important factor for rapid urbanization as well. Dhaka, the only megacity in Bangladesh, became a megacity having more than 10 million of population in 2001. Dhaka is the center of attraction of this region since 7th century and the development phase of this megacity can be categorized into five- Pre-mughal period, Mughal period, British period, Pakistan period and independent Bangladesh period. Although rural-urban migration plays the crucial most role to turn Dhaka from a city to megacity, it was not very significant during the first three period. With the partition of subcontinent Dhaka became the capital of independent Bangladesh and huge numbers of migrants start to step into this city. Dhaka, the 9th largest of 21 megacities of the world, drags people towards it with several ‗forces of attraction‘. This study, on the rural-urban migrants residing over the slums of Dhaka city, finds that availability of jobs, easy access to informal economy, ‗Dhaka means Taka‘ conception and ‗illuminating Dhaka‘ are the prime forces of attraction of Dhaka megacity. Keywords: Megacity, Dhaka, Rural-Urban Migration, Migration toward Megacity, Forces of Attraction. Introduction Development of cities and urban centers as well is intrinsically related with...
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...The Federal Reserve offers to the general public numerous publications available at the website of the Federal Reserve Board,http://www.federalreserve.gov/publications/. The Federal Reserve Board testimonies, press releases, monetary policy reports, the Beige Book, and a variety of other publications offer a detailed assessment of current economic activity, financial markets, and the monetary policy tools used to promote economic activity and preserve price stability. 1. Describe the Federal Reserve’s assessment of the current economic activity and financial markets. 2. Explain the Federal Reserve’s current view about inflation. 3. Describe the monetary policy tools the Federal Reserve uses to stabilize the economy and maintain price stability. 4. Based on the information you researched from Federal Reserve publications, present and justify your own economic outlook for the next 12 to 18 months. Introduction American economy is composed of financial balance of services, Agricultural, manufacturing and banking industry. In the result U.S one of the biggest global economy which comprises of foreign investments and movement of wealth in trade. From past many years the U.S economy is emerged more as service based and industrial base economy than farming based. This result the banking system to be more complex to deal with the government and currency , instituting the regulations and a centralized bank to regulate and from a policies which could limitize...
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...History & heritage: origins of poverty The causes of poverty are quite overwhelming at first glance: from colonialism to industrialization, from political institutions to geography, corruption and so on. But they are extremely interesting to look at if you want to better understand how so many countries are where they are today. Each cause is rooted in a radically different phenomenon and each needs a specific solution. Heritage is unquestionably an essential factor among the causes of poverty. Colonization & slavery Most countries that started their modern history with great inequalities evolved into societies that often maintained such pattern of biased wealth distribution. And conversely for countries that began with more or less equal societies. So, countries that experienced colonization and slavery often had trouble getting rid of the inherited institutions and discrimination. Others like Canada or the US on the other hand have been doing much better since then. In the case of colonized countries such as Brazil, South Africa or the Caribbean islands, the remaining white population often inherited ownership of capital and means of production once the country became independent. “Poverty is the consequence of plunder. Behind every single form of modern poverty, you find the use of force.” (Dr. Oscar Guardiola-Rivera) The colonial influence 6 The role of resources and geography The former colonies in Latin America were exploited to export their...
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...on the experience of the now developed countries, the general idea of government expansion and the underlying concepts provide some explanations as to the pattern and growth of our government. Adolph Wagner a 19th century German political economist. Who made one of the earliest attempts to explain public sector growth. Observe the tendency of the public sector in a number of industrialize countries such as Britain, USA, France, Germany, etc. to grow, both absolutely and relative to the rest of the economy. He predicted a public sector that would grow continuously, and considered society’s economic and social structure as factors that influenced this continuous growth. Wagner’s prediction was called the “law of increasing public and particularly state activities” or the “Wagner’s Law”. The equation below shows Wagner’s presumption that the existence of a functional cause and effect relationship between growth of an economy and the relative growth of its public sector. RPCOPG1 RPCOPG2 ____________ < _____________ RCPI1 RCPI2 He postulated that as per capita income and...
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...Impact of the Global Economic Crisis on China’s Migrant Workers: A Survey of 2,700 in 2009 Mark Wang1 Abstract: An Australian geographer examines the effects of the global financial crisis on China’s migrant workers, based on a recent survey of over 2,700 such workers conducted during January–February 2009. The author focuses on the number of migrant workers returning to their home villages for the annual New Year holiday period, the types of workers that were laid off, options available to such workers upon losing employment, and the reasons underlying their subsequent moves. Implications of the findings for labor policy in China are briefly outlined and several directions for future research identified. Journal of Economic Literature, Classification Numbers: E240, G010, J610, J690. 7 tables, 68 references. Key words: China, global financial crisis, migrant workers, unemployment, globalization, rural development, push factors, manufacturing exports, hukou, migration networks, remittances, Chinese New Year, return migration. INTRODUCTION M igration is closely tied with processes of globalization and the global economy, and China’s rural-to-urban migrant workers have contributed substantially to the country’s economic growth and success. This group of hard-working laborers has made inexpensive “made-in-China” products available in almost every corner of the world. Varying sources estimate that migrant workers2 have contributed 16–24 percent of China’s GDP growth and...
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...The high growth of GDP, not only the material life of our people has been greatly improved and enriched, enhanced China's international competitiveness and attractiveness, but also greatly enhance China's international political status. However, GDP exposed its defects with increasing of the resources and environmental issues. Like the news article write, although China's GDP in recent years has greatly improved, China and developed countries still have a big gap. GDP does not reflect the real employment situation and the improvement of social welfare. The GDP slowdown of China is a good opportunity for structural adjustment. One of the most important measures is to remove the irritating policy and turned to rely on economic endogenous forces to achieve growth. Premier Wen said that China's economy has downward pressure, but reducing speed is mainly to structural adjustment and truly achieve the real high-quality growth. This was also his request on the "quality" of economic growth. Keith (2012) states that “Slower growth partly reflects a government attempt to shift the economy more toward personal consumption, with less emphasis on exports and investment in big domestic construction and infrastructure projects.” As the economy moves into 2008, it faces a growing multiplex of problems. Export growth is expected to continue to temper as the negative impact of the U.S. downturn is compounded by slowdown in the European Union and Japan. As downside risks mount in the external...
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...underlying cause of the Great Recession from which America is still recovering. Popular ideas generally include irrational exuberance on the part of commercial banks, executive compensation packages which encouraged bankers to over-leverage themselves, and the collapse of the sub-prime housing market. While it is probable that some of these factors played a role in the crisis, none of them can accurately explain the near complete collapse of the financial system that began in late 2007. In fact, the cause of the financial crisis can be directly traced to the failure of government regulators to recognize the dangers of interactions between several different laws designed to protect the system. In their book entitled Engineering the Financial Crisis, authors Jeffery Friedman and Wladimir Kraus lay out an argument asserting that the crisis was caused by an unforeseen interaction between capital requirements for banks and the use of Mark to Market accounting methods. They further contend that there was a “master regulatory mistake that precipitated the crisis: using the bond ratings produced by Moody’s, S&P, and Fitch as the determinant of the capital levels required of banks by law” (Friedman 148). The book contains four chapters; the first is devoted to the refutation of several prevailing theories as to the cause of the financial crisis, the second and third explore the 2 regulatory failures which Friedman and Kraus believe are responsible for the crisis, and ...
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...on new life struggle by losing their social capital and network due to river bank erosion (Field observation). For this reason, in this study, the research problem was loss of social capital, network and role of safety net of the displaced people by River Bank Erosion (RBE). The main objective of this study was to measure the loss of social capital including network due to RBE, to explore the changing situation (social, economic and political) that displaced people face due to loss of social capital including network by RBE, to discover how do displaced people create new social capital including network and to assess the role of safety net to meet present crisis. In the context of socio-economic, geographical and ecological condition, the social capital including network and safety net is more important tool to meet any natural crisis. In this study village, the displaced people lost their material object as well as social capital and network. That’s why this study has focused on social capital including network and safety net programs in the context of river bank erosion. In this research problem, the word social capital has been considered as relationships, connections, links, and affiliations among displaced people and network has been referred as an informal relationship among persons, individuals and groups and safety net has been referred as the roles/programs of government and non government organizations to meet any natural crisis. In chapter one and two, a short introduction...
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...Department Water Crisis of Pakistan Submitted to: Mr. Rauf Akhtar Submitted By: Muhammad Rzi Abbas (2006-MCT-38) 5/23/2008 1 LETTER OF AUTHORIZATION I authorize Mr. Muhammad Rzi Abbas to research on “Water Crisis of Pakistan”. Mr. Rauf Akhtar 2 LETTER OF TRANSMITTEL Pakistan is being surrounded by almost all types of problems and difficulties nowadays. Everyone is speaking on different issues Pakistan is facing but I chose the Water Crisis which is a grave threat to Pakistan yet hidden from the eyes of most of the residents of Pakistan. To study this hanging sword I chose to write a report on the topic “Water Crisis of Pakistan”. In this report I have explained the past, present and future problems which Pakistan unfortunately had to face regarding water resources and utilization. Let me assure you that the reader will study this report with interest and will get a complete knowledge about the water sector problems which Pakistan is either facing right now or will have to face in the future. Muhammad Rzi Abbas 3 Table of Contents Letter of Authorization………………………………………………………………………………………………………………………2 Letter of Transmittal…………………………………………………………………………………………………………………….……3 Table of Contents………………………………………………………………………………………………………………………….…..4 Introduction…………………………………………………………………………………………………………………………………..….6 Summary…………………………………………………………………………………………………………………………………………..8 First Portion Chapter 1 Overview of Worldwide Water Crisis…………………………………………………………………………...
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...Introduction In this essay, we will discuss about Asian financial crisis. This crisis happened in 1997. Thailand, South Korea, and Indonesia are the worst countries that affected. There are two views that created the crisis, one is fundamental view and the other one is panic view. Hot money is money that flows between financial markets to get the highest short-term interest rates possible. Capital inflow is increase in the amount of money available from foreign sources for the purchase of local capital assets such as buildings, lands, and machinery. IMF intervention until now still become controversial, two of well-known economist which are Stiglitz and Sachs said that because of IMF intervention the crisis has become much worse rather than before. Moreover, we will discuss about global crisis, this crisis happened in 2007. This started in US because of housing mortgage, and also credit crunch. The difference between Asia crisis and the Global crisis also will be discussed. Asian Crisis Hot money is “Money that flows regularly between financial markets as investors attempt to ensure they get the highest short-term interest rates possible. Hot money will flow from low interest rate yielding countries into higher interest rates countries by investors looking to make the highest return” (Investopedia, 2011). Capital Inflow is “increase in the amount of money available from foreign sources for the purchase of local capital assets such as buildings, lands, and machinery” (Business...
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