Asian Eclipse: Exposing the Dark Side of Business in Asia [ペーパーバック]

But behind the faade lay a darker, more sinister truth. This remarkable account tears away the myths of Asian business and reveals the dark side of the Asian success story. The recent downturn in the Asian economies has been blamed on a number of factors. This controversial, eye-opening book analyzes a number of dubious business practices that are endemic in the region and which the author believes have played a significant part in Asia's economic downfall. Along with an in-depth examination of such troubling symptoms as widespread cronyism and inadequate legal protection, Asian Eclipse includes chapters on the unique business environments of Japan, China, and Indonesia.

Of particular interest to Malaysians are the whole sections devoted to "The Mahathir Family in Business" (pp 304-311), "Sarawak Incorporated" (pp 311-314), and "Malaysia's Ekran Group" (pp 120-124).

From endemic corruption to rampant cronyism, Asian Eclipse is a tale of capitalism gone sour, it names the perpetrators and offers timely advice on what is really needed for Asia to clean up its act. With its lucid explanations on how outside investors should approach the new Asian markets, it will remain an indispensable guide to the complexities of corporate Asia for years to come.

Australian Michael Backman is a leading commentator on corporate Asia, regularly contributing to the Asian Wall Street Journal. Previously an executive officer of the East Asian Analytical Unit of Australia's Department of Foreign Affairs and Trade, he is known for this detailed and uncompromising analysis. Trained as an economist, he has lived and worked in Jakarta and travels widely throughout Asia. He is the principal author of Overseas Chinese Business Networks in Asia. He is now a fellow at the EC-ASEAN Management Centre.

Reviewed by Azlan Adnan, Managing Partner of Azlan & Koh Knowledge and Professional Management Group

Asian Eclipse presents the reader case after case detailing the more objectionable aspects of business in Asia. After reading many of the cases (presented by chapters devoted to each country in the Asian region), it becomes extremely difficult to distinguish any real differences, and I personally could not say if the individuals in question were Chinese, Japanese, Indian, Indonesian- the behavior in the end was virtually the same. Only the company name and the locality where the less-than-above-board behavior took place differed.

The book actually pays for itself in the first three chapters, for here is where the reader will learn the commonalities across the region. It is also the place in the book where Backman chooses to delineate, albeit very briefly, the underlying reasons for the under-handed and unsavory business practices that unfortunately typify, but as we are increasingly seeing with the spectacular financial skullduggery of US and European corporations, are not wholly limited to the Asian corporate landscape.

The author tells the would-be investor in Asia what it means to be a stakeholder in publicly listed and privately held companies in the region. Backman deftly delineates all of the obstacles one will face when doing business or directing investments toward Asia. Should you decide to invest in Asia be forewarned: Comprehensive due dilligence is paramount. Too many Western businesspeople who venture unaware into the region have found themselves holding the bag for the embarrassing things their so-called Asian partners have done before, during and after the partnership.

One very important point from the book is this: In Asia, those who enforce the rules are also the same people who make the rules...and break them with impunity (Modern Feudalism writ large). Thus, any attempt to enforce the laws written on the legal books protecting minority corporate stakeholders (and foreigners are definitely relegated to minority positions) or to uphold terms and conditions as stated in written contracts, would only result in one and only one outcome- nothing. In other words, any rights and protections that you take for granted in the Western hemisphere simply do not exist in Asia.

In sum, the book serves as a stern warning about commonplace business practices in Asia. It also serves as a good bit of contemporary regional financial history. Finally, I do not believe that any of the players learned the appropriate lessons from the various Financial Meltdowns, large and small and/or country-specific or regional. As is often the unfortunate case, the movers and shakers in this region of the world learned all the wrong lessons. Rather than opening up, reforming, and tackling their problems in a sincere and concerted fashion, they have chosen to insulate themselves, beseech their governments to bail them out, and spend precious time and resources shifting the blame- almost always to foreigners.