Edited by Edmund Amann & Ha-Joon Chang . Published 2004. ISBN 9781900039512
The 1990s saw lower- and middle-income countries throughout the world come under pressure to open their domestic markets to international trade and investment. Despite the progressive implementation of market-friendly policies, many emerging market countries experienced financial market volatility exchange rate collapse and slumps in output. The crisis profoundly affected two of the world’s largest middle-income industrialised countries – Brazil and South Korea. Both economies despite substantial industrial sectors and impressive post-war growth records succumbed rapidly to crisis. Despite superficial similarities prior to the onset of crisis both countries had very different models of industrialisation and had adopted contrasting approaches to trade and market reform. This collection analyses the factors underlying the crisis in both South Korea and Brazil pointing out the areas of similarity and of divergence as well as the paths taken by both economies away from crisis examining both the role of policy and variations in structural characteristics.