The economic crisis in the latter half of 1990s most seriously affected Indonesia, Thailand, Malaysia and South Korea. The cause of the crisis was

1. The question asks for the cause of the Asian Economic Crisis in the latter half of the 1990s that affected countries like Indonesia, Thailand, Malaysia, and South Korea. 2. (A) Mismanagement of the financial resources and financial sector: This is widely considered a major contributing factor. Issues included weak banking supervision, poor corporate governance, excessive short-term foreign borrowing, and speculative investments, leading to asset bubbles and vulnerability. 3. (B) Prolonged over-valuation of local currencies: Many affected countries had pegged their currencies to the US dollar. When the dollar appreciated, their exports became less competitive, contributing to current account deficits. This was also a significant factor, closely linked to financial management. 4. (C) Downswing and recession in western economies: While global economic conditions play a role, a major recession in the West was not the primary trigger for the 1997 crisis, although it could exacerbate effects. 5. While multiple factors contributed, widespread financial sector weaknesses and mismanagement are often cited as the core internal vulnerabilities that led to the crisis when external pressures (like currency fluctuations and capital flight) mounted. Therefore, (A) is considered a primary cause.