Economic crisis and its social impacts: lessons from the 1997 Asian Economic Crisis

Abstract

The objective of this paper is to survey the social consequences of the 1997 Asian financial crisis with the purpose of drawing policy lessons. The outbreak of the financial crisis and the ensuing increase in unemployment and poverty triggered a worsening of education and health outcomes. The situation stabilized and eventually improved only after governments and international organizations intervened. Employment creation and cash transfers programs played a positive role in maintaining income, while education and health care programs helped meet the population’s vital education and health care needs.