A March 29th article in The Economist explores the consequence of being “Once Bitten,” by the 1997 Asian Financial Crisis. According to the article, while it would appear from the “astonishing 8.3%” growth-rate for developing Asian economies, a recent report by the Asian Development Bank shows that for the five hardest-hit countries – Thailand, Indonesia, Malaysia, South Korea, and the Philippines – the rate of economic growth has in fact “slipped by an average of 2.5 percentage points a year.” The article points out that demographic changes, decreased productivity, and issues with “human capital” are not to blame – investor perceptions are. Despite improvements in the countries’ economic and political governance, investors continue to feel the sting of 1997.
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