The 1990s saw lower- and middle-income countries throughout the world come under pressure to open their domestic markets to international trade and investment. Despite the progressive implementation of market-friendly policies, many emerging market countries experienced financial market volatility, exchange rate collapse, and in slumps in output. These problems profoundly affected two of the world’s largest middle-income industrialized countries - Brazil and South Korea. Both economies despite substantial industrial sectors and impressive postwar growth records, succumbed rapidly to crises. The two countries had very different models of industrialization and adopted contrasting approaches to trade and market reform. This book analyses the factors underlying the economic crises in South Korea and Brazil, pointing out the areas of similarity and divergence. It also reviews the paths of recovery taken by both economies, examining the role of policy and variations in structural characteristics.