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Published online by Cambridge University Press: 24 August 2023
The chapter is devoted to the economic, political, and social crisis of the early 1990s: a shock with long-lasting consequences. The crisis catalyzed the weaknesses of the previous political, social and economic fabric. The economic crisis had several components: a public finance crisis, an exchange rate collapse, and a fall in private investment. But the longer-lasting impact of the crisis came from the corruption scandals leading the judiciary to decapitate the main political parties that had run the country since 1945, as well as most of the industrial powerhouses. At a time when bold decisions were swiftly needed to adjust to the new economic and geopolitical landscape, the early 1990s left a legacy of political fragmentation and financial uncertainty.
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