Business Ethics and Corporate Governance, Second Edition

CORPORATE GOVERNANCE IS A PREREQUISITE FOR GLOBALIZATION

‘Tiger economies’ refer to economies such as South Korea, Singapore, Hong Kong, Taiwan, Malaysia, Indonesia, the Philippines, Thailand and Vietnam that had undergone rapid economic growth generally accompanied by an increase in the standard of living of the people. The South East Asian crisis developed in June 1997 in Thailand, which faced a problem of loan repayment. Fears of loan defaults resulted in foreign creditors withdrawing their funds from the country’s financial institutions. It gradually spread to the Philippines, Malaysia and Indonesia. Two major reasons were attributed to the crisis: (i) The macro economic fundamentals of the economy were weak leading to low productivity and ...