The combination of massive capital inflows and weak financial systems that were unable to allocate those inflows efficiently was the underlying cause of the crisis. PDF File available Lessons from the Asian Economic Crisis and Implications for Cambodia High-Level Capacity Building Policy Seminar for the Cambodian Council of Ministers 29 February 2000, Phnom Penh, Cambodia, ESS No. Conventional current account crises are caused by the deterioration of domestic macroeconomic fundamentals, such as price inflation, fiscal deficits, and low rates of saving. Policy measures for combating conventional current account crises include tight monetary policy, fiscal consolidation, structural reforms, and an output-expenditure switching exchange rate policy. The three over-all goals of PEM are fiscal discipline, strategic resource allocation and good operational management.
Accountability holds officials responsible for their actions.
Transparency involves ensuring access to relevant in-formation at low cost. Predictability results from an environment in which laws and regulations are clear, known in advance, and uniformly and effectively enforced. Participation requires the existence of channels through which reliable information is provided, enabling all stakeholders at all levels to be involved in the consultation and decision-making process. Governments increasingly recognized the need to get out of economic activities that competitive markets could do better, and instead have been focusing more attention on creating an enabling environment for private sector growth. Building Workshop 22-26 November 1999, Manila, ESS No.