This book is based on the papers presented and discussions held at a high-level regional workshop organized by the Asian Development Bank in January 2010 to discuss the impact of the global economic and financial crisis on developing Asia. It provides a clear and thought-provoking analysis of the global economic crisis from the perspective of 19 Asian countries.
The papers present concrete ways in which Asian economies and financial systems can be made more responsive and resilient. The book proposes that Asian economies can capitalize on the global economic crisis by using it as an opportunity to move from crisis management to gradually assuming global economic leadership. It spells out a general framework for strengthening recovery efforts, ensuring inclusive growth and open regionalism, rebalancing Asia's growth model, and creating greater regional cooperation for a prosperous and resilient Asia.
This is perhaps the first ever book in the market to undertake an in-depth discussion about the impact and the long-term implications of the global financial crisis on economies in Asia.
Chapter 8: Impact and Policy Responses: The Caucasus, Central Asia, and Mongolia
Impact and Policy Responses: The Caucasus, Central Asia, and Mongolia
The global economic crisis of 2008–2009 was transmitted to the Caucasus, Central Asia, and Mongolia through declines in prices for their commodity exports and a slowdown in destination countries—principally the Russian Federation—which buy their exports and employ migrant workers, with one exception. Unlike the other countries, however, Kazakhstan, which is well-integrated into global financial markets, experienced a sudden stop in capital flows in 2007. Fiscal stimulus has supported weakening economies, and has been financed through official borrowing in energy importers (Armenia, Georgia, the Kyrgyz Republic, Mongolia, Tajikistan) to the extent that pre-crisis imbalances and the resulting debt dynamics allow and by stabilization funds in energy ...