Chutinon Putthiwanit (Eastern Asia University, Pathum Thani, Thailand) “A History of Financial Crisis in Thailand: A Root-Cause Analysis”

Abstract:

The Tom Yum Kung crisis was a catastrophic financial crisis in Thailand in 1997, which affected also other Asian countries. Prior to this crisis Thailand was one of the fastest growing economies in the world with double digit GDP and planned to be the fifth Asian tiger (a term depicted to very healthy economy countries in Asia) along with Japan, South Korea, Singapore, and Hong Kong. What caused the financial disaster in Thailand during that time? This research aims to understand the cause and effect of the disaster by adapting the Root-Cause Analysis (RCA) tool as proposed by Ammerman (1998). This qualitative research employed an archival search from the EBSCO database, concentrating on scholarly academic journals from 1989-2014. The results examine whether the disaster was brought on by human performance problems, equipment performance problems, external force problem, or all of them combined. This research also provides some guidelines and alternative solutions for hindering plausible financial catastrophes in the future. It also provides some examples of repeated history of financial crisis in the Baltic states, e.g. Latvia.

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