A central feature of modern Asia that trumps differences in
economic and political systems is the web of close relationships
running between and within business and politics; the connections
world. These networks facilitate highly transactional interactions
yielding significant reciprocal benefits. Although the connections
world has not as yet seriously impeded Asia's economic renaissance,
it comes with significant costs and fallibilities. These include
the creation and entrenchment of huge market power and the
attenuation of competition. They in turn hold back the growth in
productivity and innovation that will be essential for further
development. The connections world also breeds massive inequalities
that may culminate in political instability. The authors argue that
if Asia's claim to the 21st century is not to be derailed, major
changes must be made to policy and behaviour so as to cut away the
foundations of the connections world and promote more sustainable
economic and political systems.
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