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Essay on East Asian Financial Crisis
Have you ever been in a situation where you were low cash and in debt? Well, I know I have. I remember one time when I had used up all of my money for the month, and owed, at the same time, my sister ten dollars. You can't buy anything, and you feel like you have no control over anything. Well, imagine an entire continent in a financial rut.
That is what is currently going on in Asia. This dilemma is known as the Asian Financial Crisis.
Now, what exactly is the Asian Financial Crisis? Well, it is the current imbalance of Asia's economy. While some areas are doing great, most areas are poor and economically unstable. Currency value has gone down drastically, the stock market is at an all time low, and people all over the continent are fearing for their futures.
The United Nations definitely should get involved in this crisis.
They should have been more involved in international loaning, which would have helped, if not prevented the debt Asia is in now. They also should have made sure that the currency rate stayed stable the second the stock market began to drop. Perhaps, if the UN was more involved in Asia's economic affairs this crisis would not be in this state of mishap.
There were many things that caused the Asian Financial Crisis. One of them would have to be overseas borrowing. It is very important to understand that if the country is borrowing from the rest of the earth its foreign debt will grow over time. Thus, flows (items on income and cash flow statements) translate into changes in stocks (balance sheet items, like family fortune, the stock of capital, government debt, and net foreign debt).
So, in the end, Asian countries borrowed too much, and were ....
