However, developing nations are often plagued by economical not to mention social and political problems, and have neither the resources nor the institutional framework necessary to build up a reserve. Of course, Malaysia possesses a national reserve[8] which provides grants and loans to aspiring businesses, but it is highly doubtful that they would be able to afford US$85bn to bail out their banks without massive expenditure reviews and cutbacks to public services. This is notable because on each occasion when it experienced a recession, it recovered extremely rapidly and regained its exemplary rates of growth within a short period of time (12% in 1975, 11% in 1986 and an amazing 16% in 2000). In response to the East Asian Crisis, Malaysia introduced the New Economic Recovery Plan (NERP). The contents of the plan were the careful easing of fiscal and monetary policy and the lowering the cost of capital to stimulate economic growth. With regard to fiscal policy, the government introduced an austerity package of RM7bn[9] to assist with funding and government expenditure. In the aspect of monetary policy, the central bank reduced the intervention rate[10] from 11% to 7% and the Statutory Reserve Requirement[11] (SRR) to 4% to assist with the setting up of businesses and kindling of investment. As a result of the plan, competition in Malaysia was harnessed, resulting in injections into the circular flow of income and subsequent capital accumulation. All of these factors contributed to the rapid recovery of the nation in the wake of the crisis.