Impact Of AFC

Question 1

Change in thai pm

Answer 1

Chavalit -> chuan

Question 2

Change in Indonesian president

Answer 2

Suharto to habibie (May 1998 Suharto stepped down after mass protests)

Question 3

Why was there a change in Thai pm?

Answer 3

Chavalit was hesitant to implement austerity measures as a part of IMF’s $17 billion loan
- reform to shut down insolvent banks led to mass protests (late 1997) -> stepped down

Chuan took over and implemented IMF’s austerity measures

Question 4

Actors in managing AFC

Answer 4

1) government
2) international organisations (IMF)
3) masses

Question 5

What did chuan do?

Answer 5

• Shut down 56/91insolvent financial institutions. Gvt took over 4 banks
• bankruptcy legislature to make it easier to liquidate assets.
• stringent banking laws. Up to international standards by 2000. Eg. Full disclosure on bad debt to central bank.
• allow foreigners to own banks. Opening up to foreign banks

Question 6

Chuan’s socio political impact

Answer 6

Closure of insolvent banks led to displeasure among populace. Chuan and his democrat party accused of prioritising big business and foreign interests.

Led to rise if Thaksin. Clear political divide. Urban pop support chuan vs rural supporting Thaksin