South and Southeast Asia Essay

1763 Words 8 Pages
South and Southeast Asia


The region under scrutiny happens to be among the most impoverished countries in the world, though allowing for so much growth that is has made them among the fastest growing countries in the world. The region with all this potential is South and Southeast Asia, and the countries holding 40% of the world’s poor are Bangladesh, Thailand, Pakistan and India. How is it that South Asia has grown so much over the past decade with 35% of its men and 59% of its woman being illiterate? Or how is it that half a billion of the people in South Asia are living off less than a dollar a day? So much of the information I have found for this paper is hard to swallow, though I will try and tell it to you
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Who is supporting the growth

In order for many South Asian countries to survive they had to seek help in the form of loans, luckily for them the International Monetary Fund was able to help. The IMF and several Asian countries have so far pledged to provide more than a $100 billion in loans to help save Southeast Asia’s struggling financial systems. Though in return for these loans, recipient countries must implement a series of austerity measures designed to contain the crisis and improve their free-market economic policies. Some of these austerity measures are to increase certain taxes, implement policies to discourage banks from making risky loans and to shut down many of the insolvent financial firms that had planned on being bailed out. Therefore the Asian crisis and the IMF bailout has created a wide-ranging debate on the merits of Asia’s economic model. Though with the debate on how to fix the crisis, it really seems to be just two competing versions of capitalism. The Asian model, set to resemble Japan’s economy, is based on the belief that leaders must take a direct and active role in the free market to assure rapid growth and high employment. The other version is the Western model, modeled after the U.S. economy, which is set to discourage government intervention in the marketplace and largely place faith in the free market to determine the countries course of economic
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