Assessing the Social Impact of the Financial Crisis in Asia

Abstract

It seems clear that the evolving social crisis is both massive and potentially long-lasting. This is because the Asian financial and economic crisis, underpinned by structural problems, is more diffi¬cult to overcome than, say, the Mexican crisis that was caused by macroeconomic imbalances. The Bank's ongoing regional technical assistance study in¬tends to provide a more comprehensive assessment of the social impact. In addition to standard socioeconomic analysis that tends to rely on quantitative macro and sectoral data, the study will un¬dertake qualitative micro-level (household and community) assessments using participatory approaches in the affected coun¬tries. This latter part of the study is intended to complement the former in providing details that typically escape the standard eco¬nomic approach. With a more thorough understanding of the social crisis, it should be possible to better assist in devising responses and actions that would strengthen social protection systems. More generally, it should be possible to indicate critical reforms in the social sectors that would contribute to improving the prospects of long-term so¬cial development in Asian developing countries.