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This book carefully analyzes events that led to the crisis in East Asia, the tremendous effects the crisis has had on the Asian economies, and prospects for the region's future. It covers the region's trade and competitiveness, the financial sector at the center of the crisis, the corporate sector's financial performance and governance, and the social crisis resulting from the financial crash, among other issues. This in-depth report examines various factors that contributed to East Asia's financial collapse. It describes the emergence of the region's structural vulnerability to external shocks and financial panics such as the globalization of financial markets, newly liberalized but insufficiently regulated financial markets, and key macroeconomic policy responses. This comprehensive World Bank study looks carefully at these changes and is designed to be: a snapshot of where the region stands; a progress report on the enormous changes that have taken place in the last year; and an analysis of the remaining obstacles to establishing a firm recovery.

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