Well here's another one. Sure is a lot being written about devaluation. It's the last paragraph where it's mentioned. I still wonder what the reaction will be IF it happened?
MikeM(From Florida)
>>Tuesday, May 19, 1998
Indonesia Unraveling is an Economic Threat
Mercury News Tokyo Bureau 'This is not just a crisis for Indonesia; this is an Asian crisis,'' said Henri Claude deBettignies, an expert on Asian management who teaches at the Stanford University Graduate School of Business. ''The growth of the entire region is going to decrease dramatically.''
The collapse of Indonesia's economy is likely to slow growth in smaller neighbors such as Thailand, Malaysia and the Philippines. About 18 percent of Indonesia's imports came from other Southeast Asian nations, and another 10 percent came from China, Hong Kong and Taiwan. The chaos in Indonesia also means foreign investors will tend to shy away from the region or at least ''reconsider'' the political risk of their investments, according to Merrill Lynch's Belchere.
A continuing economic slowdown in Southeast Asia, in turn, would raise pressure on China. Beijing promised months ago not to revalue its currency to improve its trade competitiveness, but it needs to maintain a growth rate of about 7 percent or risk mass unemployment and political turmoil.<< |
