Key Points Criticism of East Asia’s unsuccessful development model misses the point. Economic growth requires robust initiatives in both the private and public sectors. Leapfrogging may be possible for latecomer countries in the field of information technology. The Asian financial crisis started in July 1997, wreaking havoc on economies in the region throughout the following year. It had a devastating impact on countries like Thailand, South Korea and Indonesia, which had previously enjoyed strong economic growth, causing significant currency devaluation and a collapse in domestic demand. The debacle could be characterized as a new type of crisis caused by the massive short-term capital flows into countries where international capital transactions had become liberalized. What was the impact of the financial turmoil in the Asian region which has had a long history of economic development? Following the crisis, significant social changes occurred in the ... ... [Read more]