Mitigating the Social Costs of the Economic Crisis and the Reform Programs in Asia

IMF Policy Discussion Papers, June 1, 1998

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Canonical URL: Mitigating the Social Costs of the Economic Crisis and the Reform Programs in Asia

Authors: Marijn Verhoeven, Sanjeev Gupta, Gerd Schwartz, Calvin A McDonald, Željko Bogetic, Christian Schiller
Published: June 1, 1998
Series: IMF Policy Discussion Papers
DOI: https://doi.org/10.5089/9781451971408.003

Presents a preliminary analysis of the likely social impact of the economic crisis and the reform programs in three Asian countries—Indonesia, Korea, and Thailand.
Focuses on likely changes in real consumption expenditures arising from higher inflation and increases in unemployment.
Finds that the current social policy measures adopted in the reform programs should provide significant social safety nets for the poor.
Notes that if the social impact turns out to be larger than projected, it would be worthwhile to assess cost-effective and efficient alternatives for expanding social safety nets, and presents some options that could be considered.

Countries analyzed: Indonesia, Korea, and Thailand.
Primary channels examined:
- Higher inflation → changes in real consumption expenditures.
- Increases in unemployment → changes in real consumption expenditures.
Emphasis on social safety nets and their projected adequacy under current reform programs.
Conditional recommendation to evaluate expanded social safety nets if impacts exceed projections.

Evaluate cost-effective and efficient alternatives for expanding social safety nets if social impact exceeds projections.
Present a set of options for consideration (options are described in the paper; overview here highlights the need for assessment of alternatives).

Subject: Consumption, Household consumption, Income, Inflation, Labor, National accounts, Prices, Unemployment
Keywords: Asia, Asia and Pacific, Consumption, Household consumption, household expenditure data, Income, income distribution, income share, Indonesia, Inflation, nominal wage, PDP, per capita income, poverty, poverty line, PPP terms, price, price change, price increase, social impact, social safety nets, Thailand, Unemployment

Mitigating the Social Costs of the Economic Crisis and the Reform Programs in Asia - PPAA/98/7
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