Asian Eclipse: Exposing the Dark Side of Business in Asia

by Michael Backman

"Asia can be a crazy place" and conducting business in this region often means "grappling with cronies, corruption and conglomerates" according to author Michael Backman. In his book Asian Eclipse, he takes us over the proverbial Chinese wall to reveal the bribery and corruption rife in the Eastern corporate world.

Delving into what constitutes "Asianness," he exposes a highly complex corporate landscape--one where Confucian thinking pervades all aspects of business culture; bankruptcy is considered an affront to one's ancestors; the media are threatened with closure for reporting on "sensitive" issues; patriarchal management and nepotism are the norm, often ending in costly family disputes; and auditing and corporate governance are new concepts! With a thorough analysis of the different Asian markets, he lays bare the structurally inherent flaws that led to widespread economic crises from 1997 to 1998. In his view, "the real Asian 'miracle' is that the economic collapse didn't happen earlier".

Packed with detail, this book should be the bible for anyone considering doing business in Asia, but is also accessible to the lay reader. The chapters end with excellent case-studies that provide rare and fascinating insights into some of the more shady corporate practices in the region, including President Soeharto's ventures, and also the contributors to Clinton's 1996 campaign funds. Backman recounts many incidents from firsthand experience, reflecting the wealth of knowledge he has accumulated from his extensive time in Asia. --Neelam Dongha

Genres: Business, Economics, History, Asia

Paperback

First published May 9, 2001

About the author

Michael Backman is an Australian-born writer who now resides in London. Much of his writing relates to Asia’s economies, business, culture and politics.

Reviews

[Monzenn · Rating 5 out of 5]

Only a few misgivings about downplaying the role of foreign investments / hot money towards the Asian financial crisis. It almost veered towards "you deserved it." One perhaps has to understand the audience, who is still mostly Western, so the book perhaps has to justify the harsh measures of the IMF-World Bank lest they be too turned off by the book (poor Stiglitz, in a way).

Because otherwise, this is a great book on the 90s East Asian corporate scene. It covers a wide range of topics, from cultural consideration to familial focus to corporate shenanigans. The narrative structure was sublime, with the sequence of chapters ending with the Lippo Group, which embodies almost if not all the traits mentioned. It's a great resource to go back to habitually, and which would spur further interest on any of the companies mentioned (from the briefly mentioned Orient Bank to the chapters dedicated to the Sukarnos).

Probably the best way to consume this book is to read it alongside books around the same era: off the top of my head, Globalization and Its Discontents (Stiglitz), several chapters of Manias, Panics and Crashes (Kindleberger), perhaps any of the books that deal with the 90s US excesses - the tech bubble to the left, Enron to the right (I laughed a bit when Backman said that off-balance sheet transactions weren't as widely used in the West). Otherwise, great book.

[DaveD · Rating 3 out of 5]

An interesting overview of how business works in Asia as compared to what westerners are used to. It is a bit old, focusing mostly on the economic collapse of the late 90's, but it seems like a lot of the issues are still relevant. Having no prior knowledge of how things really work in Asia nor of many of the scandals that have occurred, I found it to be quite interesting. It sure makes me not really want to invest in stock markets or get involved with banks in most of Asia, or to try to make in roads in business, but I'm just some random guy on the internet, what do I know? Give it a read if you have an interest in how asian business is modeled.

[Jim Good · Rating 3 out of 5]

A bit dated as iot speaks of the Asian economic collapse as a recent event. The book was written in 2000 and talks about Asian business practices from large conglomorates, family run operations and corrupt governments. In essance it argues the Asian business model is flawed due to the low pay of government buerocrats and judiciary, the lack of true accounting regulation and auditing, and the nature of family business interactrions.