The Social Impact of the Asia Crisis by Tran Van Hoa (eds.)

By Tran Van Hoa (eds.)

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By Tran Van Hoa (eds.)

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Migration Urban to Rural. Diminished economic opportunities in the urban areas have increased flows of people from the cities back to the rural areas. This has resulted in greater competition in the supply of farm labour. The agricultural sector was hardly in a position to take in extra labour because of the reduced production effected by the lingering dry spell in 1998. And early in 1999, official statistics show that even as agricultural output started to improve and employment levels increased in the rural areas, the majority of the Ma.

The Thai financial system and real sectors were severely disrupted; non-performing loans (NPLs) rose considerably. These adverse effects from currency depreciation soon spread to other Asian economies in which weak economic institutions were already being overburdened before the Thai crisis. The Thai economic turmoil quickly turned into a region-wide contagion. The financial mismanagement by the BOT and the wrong prescription of policy responses have worsened the situation in Thailand. The BOT interventions in the money market proved to be very costly and ineffective.

The Philippines’ Department of Labour and Employment (DOLE) reports that establishments in the National Capital Region (NCR) were most adversely affected by the Asian crisis. About 60 per cent of total establishment closures and retrenchments occurred in Metro Manila (the capital city) alone in 1998, and these firms were mostly firms in the manufacturing, wholesale and retail trade sectors. A DOLE survey indicated that the slump in market demand was identified as the main instigator of these closures and retrenchments, though a significant number of firms directly linked these developments to the depreciation of the peso.

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