Severe shocks in the so-called "Tiger" economies of South-East Asia sent the markets of Wall Street, London and Tokyo reeling.

Traders in Hong Kong

The Hong Kong stock market fell like a stone in the autumn. Shares in the rest of the region reacted by collapsing as well.

The biggest Asian economy, Japan - which has been weak since 1990 - also suffered and there were real fears that the situation would have a major impact on the world economy.

For many of the tiger economies - Singapore, Malaysia, South Korea - the 1980's and 90's had been a period of spectacular growth.

But not everything was going so well. South Korea has seen a string of bankruptcies which created a great strain on the banking system - and forced it eventually to turn to the International Monetary Fund for help. Indonesia, Malaysia and Thailand have also suffered from serious structural problems.

Years of rocketing growth had hidden many of the weaknesses inherent in their economic systems - too much borrowing for speculation in property, too few skilled workers, too little regulation.

At a meeting of Asian and Pacific leaders in Vancouver, Canada, the US Secretary of State, Madeleine Albright urged her audience to learn from the mistakes of the recent past. However, the markets remain fragile.
 

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