Meaning: This quote by Jeffrey Sachs, an American economist and director of The Earth Institute at Columbia University, refers to the impact of the International Monetary Fund (IMF) intervention in Thailand and Indonesia during the Asian financial crisis of the late 1990s. The quote suggests that the IMF's involvement led to a series of financial runs or crises in these countries, highlighting the dramatic and widespread repercussions of the IMF's actions.

To understand the significance of this quote, it's important to delve into the context of the Asian financial crisis. The crisis, which began in mid-1997, was triggered by a combination of factors including excessive speculative borrowing, structural weaknesses in the financial systems of several Asian countries, and currency devaluations. As the crisis unfolded, countries such as Thailand and Indonesia experienced severe economic turmoil, with their currencies and financial markets plummeting.

In response to the crisis, the IMF stepped in to provide financial assistance and policy advice to the affected countries. However, the IMF's intervention was not without controversy. Critics argue that the IMF's prescribed austerity measures and structural reforms exacerbated the economic downturn in these countries, leading to widespread social and political unrest.

Sachs, known for his work on economic development and his critique of IMF policies, is likely commenting on the chain of events that unfolded in Thailand and Indonesia following the IMF's intervention. The term "runs" in the quote refers to the financial instability and capital outflows that occurred as a result of the IMF's actions. These runs can be understood as a series of panics and crises within the financial systems of the affected countries, ultimately contributing to the deepening of the economic crisis.

In Thailand, the IMF's intervention led to a sharp devaluation of the baht and a banking crisis, as well as widespread unemployment and social unrest. Similarly, in Indonesia, the IMF's policies were met with resistance and criticism, as the country faced a deep recession, political turmoil, and social upheaval.

Sachs' assertion that the runs started in Thailand after the IMF intervened and then spread to Indonesia underscores the interconnectedness of the Asian financial crisis and the repercussions of the IMF's actions. His use of the word "dramatic" emphasizes the severity and magnitude of the events that unfolded in these countries, highlighting the significant impact of the IMF's intervention on the region's financial stability and social well-being.

It's important to note that Sachs has been a vocal critic of the IMF's approach to economic crises, advocating for alternative policies that prioritize sustainable development and social justice. His commentary on the Asian financial crisis and the IMF's role reflects a broader debate within the economics profession about the effectiveness and consequences of IMF interventions in times of crisis.

In conclusion, Jeffrey Sachs' quote sheds light on the complex dynamics of the Asian financial crisis and the implications of the IMF's involvement in Thailand and Indonesia. By highlighting the onset of financial runs in these countries following the IMF's intervention, Sachs underscores the far-reaching and dramatic effects of the crisis, as well as the contentious impact of IMF policies on the affected economies and societies. This quote serves as a reminder of the need for critical examination of international financial institutions' responses to economic crises and the importance of considering the broader social and developmental implications of their interventions.