MegRithmire
Precarious Ties: Business and the State in Authoritarian Asia
Precarious Ties: Business and the State in Authoritarian Asia
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Precarious Ties by Meg Rithmire explores the relationships between business and political elites in three authoritarian regimes in developing Asia: Indonesia, Malaysia, and China. She offers two conceptual models of state-business relations that explain their genesis and why variation occurs over time, and argues that trust between business and political elites, determined during regime formation, and the dynamics of financial liberalization are the main factors explaining why one pattern dominates over the other.
Format: Paperback / softback
Length: 384 pages
Publication date: 01 November 2023
Publisher: Oxford University Press Inc
Developing Asia has witnessed a remarkable surge in economic growth, accompanied by some of the world's most enduring authoritarian regimes. Accounts of rapid development alongside monopolies on political power have often highlighted the intricate connections between the state and business, emphasizing the role of crony relationships in fostering such growth. However, these partnerships have not always been seamless, as evidenced by anti-corruption campaigns, financial and banking crises, and dramatic periods of liberalization and crackdown.
In her book, Precarious Ties, Meg Rithmire delves into the complex dynamics between business and political elites in three authoritarian regimes in developing Asia: Indonesia under Suharto's New Order, Malaysia under the Barisan Nasional, and China under the Chinese Communist Party. These regimes experienced periods of high growth and purported alliances between autocrats and capitalists. Nevertheless, over time, the relationships between these elites shifted, leading to divergent economic outcomes. While state-business ties in Indonesia and China created dangerous dynamics such as capital flight, fraud, and financial crises, Malaysia's state-business ties contributed to economic stagnation.
To unravel these developments, Rithmire presents two conceptual models that explain the genesis and variations of state-business relations. The first model, mutual alignment, occurs when an authoritarian regime organizes its institutions or informal practices to incentivize capitalists to invest in growth and development. On the other hand, mutual endangerment arises when economic and political elites become entangled in corruption, undermining the stability of the regime.
Through a comprehensive analysis of these regimes and their interactions with business elites, Rithmire sheds light on the factors that contribute to the breakdown of partnerships between political and business elites. She highlights the importance of institutions, informal practices, and the balance of power in shaping these relationships. Precarious Ties provides valuable insights into the complex dynamics of state-business relations in developing Asia and offers valuable lessons for policymakers and scholars seeking to understand and navigate these intricate relationships.
Weight: 560g
Dimension: 155 x 235 x 25 (mm)
ISBN-13: 9780197697535
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