1990s - Economics

Economics

• Many countries, institutions, companies, and organizations were prosperous during the 1990s. High-income countries such as the United States, Japan, Singapore, Hong Kong, Taiwan, South Korea, and those in Western Europe experienced steady economic growth for much of the decade. However, in the former Soviet Union GDP decreased as their economies restructured to produce goods they needed and some capital flight occurred.
• GATT update and creation of the World Trade Organization and other global economic institutions, but opposition by anti-globalization activists showed up in nearly every GATT summit, like the demonstrations in Seattle in December 1999.
• The anti-globalization protests at the World Trade Organization Ministerial Conference of 1999 in Seattle, Washington began on 30 November 1999. This marks the beginning of a steady increase in anti-globalization protests which occurred in the first decade of the 21st century as well as increasing hostility to neoliberalism.

North America

• The decade is seen as a time of great prosperity in the United States under the Presidency of Bill Clinton. The U.S economy experiences its longest period of peace time economic expansion during the decade beginning in 1991. Personal incomes doubled from the recession in 1990, and there was higher productivity overall. After the 1996 Welfare Reform Act there was a reduction of poverty, and the Wall Street stock exchange stayed over the 10,500 mark from 1999 to 2001.
• After the 1992 booming of the US stock market, Alan Greenspan coined the phrase "irrational exuberance".
• The North American Free Trade Agreement (NAFTA), which phases out trade barriers between the United States, Mexico, and Canada is signed into law by U.S. President Bill Clinton.

Asia

• The government of the People's Republic of China announces major privatization of state-owned industries in September 1997.
• China started the '90s in a bad way, shunned by much of the world after the Tiananmen Square Massacre and controlled by hard line politicians who reigned in private enterprise and attempted to revive old-fashioned propaganda campaigns. Relations with the United States deteriorated sharply, and the Chinese leadership was further embarrassed by the disintegration of communism in Europe. In 1992, Deng Xiaoping travelled to southern China in his last major public appearance to revitalize faith in market economics and stop the country's slide back into Maoism. Afterwards, China recovered, and would experience explosive economic growth during the rest of the decade. In spite of this, dissent continued to be suppressed, and President Jiang Zemin launched a brutal crackdown against the Falun Gong religious sect in 1999. Deng Xiaoping himself died in 1997 at the age of 93. Relations with the US deteriorated again in 1999 after the bombing of the Chinese embassy during the bombing of Serbia by NATO forces, which caused three deaths, and allegations of Chinese espionage at the Los Alamos Nuclear Facility.
• South-East Asia economic crisis starting from 1997.
• Financial crisis hits East and Southeast Asia in 1997 and 1998 after a long period of phenomenal economic development, which continues by 1999. This crisis begins to be felt by the end of the decade.
• In Japan, after three decades of economic growth put them in second place in the world's economies, the situation worsened after 1993. The recession went on into the early first decade of the 21st century, bringing an end to the seemingly unlimited prosperity that the country had hitherto enjoyed.
• The Philippines saw great economic development after the People Power Revolution. The economy gains 5% from its deficit until the 1997 Asian Financial Crisis.
• Less affluent nations such as India, Malaysia, and Vietnam also saw tremendous improvements in economic prosperity and quality of life during the 1990s. Restructuring following the end of the Cold War was beginning. However, there was also the continuation of terrorism in Third World regions that were once the "frontlines" for American and Soviet foreign politics, particularly in Asia.

Europe

• By 1990, Soviet leader Mikhail Gorbachev's reforms were causing major inflation and economic chaos. A coup attempt by hard-liners in August 1991 failed, marking the effective end of the Soviet Union. All its constituent republics declared their independence in 1991, and on Christmas, Gorbachev resigned from office. After 73 years, the Soviet Union had ceased to exist. The new Russian Federation was headed by Boris Yeltsin, and would face severe economic difficulty. Oligarchs took over Russia's energy and industrial sectors, reducing almost half the country to poverty. With a 3% approval rating, Yeltsin had to buy the support of the oligarchs to win reelection in 1996. Economic turmoil and devaluation of the ruble continued, and with heart and alcohol troubles, he stepped down from office on the last day of 1999, handing power to Vladimir Putin.
• Russian financial crisis in the 1990s results in mass hyperinflation and prompts economic intervention from the International Monetary Fund and western countries to help Russia's economy recover.
• The first McDonald's restaurant opens in Moscow in 1990 with then-President of the Supreme Soviet of the Russian SFSR and future Russian President Boris Yeltsin attending, symbolizing Russia's transition towards a capitalist free market economy and a move towards adopting elements of western culture.
• Oil and gas were discovered in many countries in the former Soviet bloc, leading to economic growth and wider adoption of trade between nations. These trends were also fueled by inexpensive fossil energy, with low petroleum prices caused by a glut of oil. Political stability and decreased militarization due to the winding down of the Cold War led to economic development and higher standards of living for many citizens.
• Most of Europe enjoyed growing prosperity during the 90s however problems including the massive 1995 general strikes in France following a recession and the difficulties associated with German reunification lead to sluggish growth in these countries. However, both the French and German economies improve in the latter half of the decade. Meanwhile the economies of particularly Spain, Scandinavia and former Eastern Bloc countries accelerate at rapid speed during the deacde.
• After the early 1990s recession, the United Kingdom and Ireland experience rapid economic growth and falling unemployment that continues throughout the decade. Economic growth would continue until the Late 2000s recession marking the longest uninterrupted period of economic growth in history.
• Some Eastern European economies struggled after the fall of communism, but Poland, Hungary, Czech Republic, Estonia, Latvia and Lithuania saw healthy economic growth rates in the late 1990s.
• With the creation of the EU there is freedom of movement between member states, such as the 1992 and 1995 free trade agreements.
• The Euro is adopted by the European Union on 1 January 1999, which begins a process of phasing out national currencies of EU countries.

South America

• The sluggish economies of Brazil, by a new emphasis on free markets for all their citizens, and Mexico, under economist president Ernesto Zedillo elected in 1994, were in their best shape by the late 1990s.