By year’s end, the Asian Financial Crisis results in a fundamental restructuring of Southeast Asian economies. Millions lose jobs, local companies are sold at fire-sale prices to multinational corporations, and national economic policies are effectively rewritten under IMF and World Bank …
International Monetary FundWorld BankMcKinsey & CompanyMultinational CorporationsFederal Reserveasian-financial-crisisstructural-adjustmentimfeconomic-shock-therapycorporate-capture+1 more
During the 1997-1998 Asian Financial Crisis, McKinsey & Company positioned itself strategically to provide consulting services to governments and financial institutions undergoing IMF-mandated structural reforms. The crisis triggered widespread economic restructuring in Thailand, Indonesia, and …
McKinsey & CompanyIMFWorld BankThailand GovernmentIndonesia Government+1 moremckinseyconsultingstructural-adjustmenteconomic-shock-therapyasian-financial-crisis+2 more
McKinsey & Company releases a strategic report recommending extensive market liberalization and corporate restructuring across Southeast Asian economies during the Asian Financial Crisis. The report becomes a blueprint for IMF and World Bank interventions, prioritizing foreign investment and …
McKinsey & CompanyInternational Monetary FundWorld BankSoutheast Asian Governmentsasian-financial-crisismckinseystructural-adjustmentcorporate-strategyeconomic-shock-therapy+2 more
The International Monetary Fund implements a 7 billion bailout package for South Korea, mandating sweeping economic reforms. This included forced corporate restructuring of the chaebol system, financial sector liberalization, and opening markets to foreign investors. The conditions resulted in …
International Monetary FundSouth Korean GovernmentChaebol CorporationsWorld BankAsian Development Bankimfstructural-adjustmenteconomic-shock-therapyasian-financial-crisissouth-korea+2 more
On October 15, 1997, the International Monetary Fund (IMF) announced a comprehensive $43 billion bailout package for Indonesia during the Asian Financial Crisis, contingent upon radical structural adjustment reforms. The IMF mandated a 50-point reform program that included closing 16 private banks, …
International Monetary FundSuharto GovernmentWorld BankMcKinsey & CompanyBank Indonesiaasian-financial-crisisstructural-adjustmentimfindonesiaeconomic-shock-therapy+2 more
The IMF provided a $10 billion bailout to Indonesia in November 1997, imposing stringent structural adjustment conditions that demanded banking sector reforms, public spending cuts, and market deregulation. These policies, while intended to stabilize the economy, resulted in significant social …
IMFSuharto GovernmentWorld BankMcKinsey & Companyimfstructural-adjustmenteconomic-shock-therapyasian-financial-crisisindonesia+2 more
On July 2, 1997, Thailand devalued the Thai baht after exhausting foreign currency reserves, marking the beginning of the Asian Financial Crisis. The currency fell from 25 baht per U.S. dollar to 54 baht per dollar by January 1998. The IMF and global financial institutions mobilized over $118 …
Thai Central BankIMFWorld BankMcKinsey & CompanyBank of Thailandasian-financial-crisisimfstructural-adjustmentcurrency-manipulationeconomic-shock-therapy+1 more
In the aftermath of the 1973 Chilean coup, the Chicago Boys, a group of economists trained by Milton Friedman at the University of Chicago, began implementing radical free-market economic reforms under Augusto Pinochet’s dictatorship. Their ‘shock therapy’ approach involved rapid …
Milton FriedmanArnold HarbergerAugusto PinochetThe Chicago BoysAmartya Seneconomic-shock-therapyneoliberalismchile-economic-policypsychological-manipulationinstitutional-capture