East asian capitalism diversity continuity and change

East Asian Capitalism This page intentionally left blank East Asian Capitalism: Diversity, Continuity, and Change Edited by Andrew Walter and Xiaoke Zhang Great Clarendon Street, Oxford OX2 6DP, United Kingdom Oxford University Press is a department of the University of Oxford It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries # Oxford University Press 2012 The moral rights of the authors have been asserted First Edition published in 2012 Impression: All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloging in Publication Data Data available ISBN 978–0–19–964309–7 Printed in Great Britain by MPG Books Group, Bodmin and King’s Lynn Links to third party websites are provided by Oxford in good faith and for information only Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work Acknowledgements In the research and preparation of this volume, we have accumulated debts to various individuals and institutions As editors, we wish to thank the contributors for their cooperation and efficiency, which made the editing of the volume more agreeable than can be the case with such collective and inter-disciplinary projects We are grateful to the following people for having made extensive and constructive comments on the thematic and country chapters: Ann Booth, Jenny Corbett, Bob Hancké, Jeff Henderson, and Richard Whitley Thanks are also due to the anonymous reviewers whose suggestions and criticisms helped to improve the central arguments and analytical coherence of the volume While organizing the workshop in June 2010 from which this volume was born, we received and gratefully acknowledge financial support from the Institute of Asia-Pacific Studies of the University of Nottingham, the London School of Economics, and the Japan Foundation Finally, David Musson and Emma Lambert at OUP provided a generous mixture of advice and guidance at crucial points Any remaining errors and omissions are ours alone Andrew Walter Xiaoke Zhang September 2011 This page intentionally left blank Contents List of Figures List of Tables List of Contributors ix x xii Part One Introduction Debating East Asian Capitalism: Issues and Themes Andrew Walter and Xiaoke Zhang Part Two Business–Government Relations and Development Strategies Government–Industry Relations in China: A Review of the Art of the State Shaun Breslin 29 Not of a Piece: Developmental States, Industrial Policy, and Evolving Patterns of Capitalism in Japan, Korea, and Taiwan Karl J Fields 46 State–Business Linkages in Southeast Asia: The Developmental State, Neo-liberalism, and Enterprise Development Edmund Terence Gomez 68 Part Three Labour Markets and Industrial Relations Reform and Institutional Change in East Asian Labour Markets Frederic C Deyo Durable Subordination: Chinese Labour Regime through a South Korean Lens Ching Kwan Lee 91 110 Contents Continuity and Change in the Japanese Economy: Evidence of Institutional Interactions between Financial and Labour Markets Mari Sako and Masahiro Kotosaka 132 Part Four Financial Market Structures Political Hierarchy and Finance: The Politics of China’s Financial Development Richard W Carney The Political Economy of Financial Development in Southeast Asia Thomas B Pepinsky 159 179 10 The Japanese Financial Sector’s Transition from High Growth to the ‘Lost Decades’ Wataru Takahashi 201 11 Dominant Coalitions and Capital Market Changes in Northeast Asia Xiaoke Zhang 223 Part Five Conclusion 12 Understanding Variations and Changes in East Asian Capitalism Andrew Walter and Xiaoke Zhang 247 References 281 Index 315 viii List of Figures 6.1 Urban employment by ownership type 112 6.2 Type of employment, 1980–2008 113 7.1 Typology of institutional change 136 7.2 Stock price indices in Japan, 1997–2010 139 7.3 Venture capital investment and loans outstanding in Japan 141 7.4 Composition of venture capital investors (%, value base) 142 7.5 Venture capital investment by type of exit 144 7.6 The most important factors (top three) in settling pay during Shunto negotiations 147 7.7 Dispersion in Shunto wage settlements in Japan 147 9.1 Banking sector development, 1960–2007 182 9.2 Equity market development, 1976–2007 184 9.3 Banking sector efficiency, 1990–2007 185 9.4 Growth in real GDP per capita, 1965–2007 (3-year moving averages) 193 10.1 Japan: real deposit rate (annual interest rate—CPI) 205 10.2 Real GDP growth rate, Japan 205 10.3 Flow of funds, Japan 209 10.4 Time deposit rates and prime lending rates, Japan 214 10.5 Comparison between Japan and China: ratios of money supply (M2 base) to GDP 219 11.1 Bank loans to SMEs as a percentage of total corporate loans 230 11.2 Number of listed companies per million population 231 ix Index rise of 60, 67 rural-urban hierarchical citizenship 124–5 social welfare spending 276 state control 250, 266, 267–9, 275 state-planned system reformed 29–30 Taiwan and 50, 59, 238 trade unions 266; see also ACFTU weakness of civil society 126–8 work management pattern 251 see also Agricultural Bank; Beijing; CBC; CCP; CBRC; CSRC; Cultural Revolution; Deng Xiaoping; Export-Import Bank; Guangdong; hukou; ICBC; Li Peng; Mao; NAO; National People's Congress; PBOC; State Council; Wen Jiabao; Zhu Rongji China Construction Bank 167 China Development Bank 38, 169 n China Labour Bulletin 119 n China Orient 171 n Chinese Academy of Science 38 Chinese Labour and Social Security Ministry 113, 119 Chongqing 118 Chou, K P 34, 40–1 Chu Yun-han 57, 59 n., 228 Chubu Sanseiken 148, 149 Chun Doo-hwan 54 Chun, J 127 Chung Kyuil 124, 127, 234 CIA World Factbook 163 n CIMB Bank 77 Cinda 171 n citizenship hierarchy 124–5 civil society 49, 60, 61, 63, 66 growing pressure from 278 lack of social movement support for workers 124 weakness of 110, 126–8, 131 Claessens, S 249, 253 n Clark, C n., 15 CLSA Asia-Pacific Markets 256, 278 CMEs (coordinated market economies) n., 10, 14, 134, 270, 276 non-market or strategic coordination Code of Corporate Governance for Listed Companies (China) 172 collective action 119, 124, 126, 146, 156 ability to coordinate 265 dismantling of 133 measures to alleviate problems 57 standard dilemmas 22 collective bargaining 12, 258 coverage of agreements 257 guidelines for 98 ineffective 269 limited 16, 17, 19 provisions in the law for 129 weaknesses in 101, 259 command economy 165, 166–7 Commercial Banking Law (China 1995) 169 n commercial banks 167, 169, 189, 204 n., 207, 210, 218 state-run 171 commodification 104, 111–14 casualization and 110, 120, 123 Company Law (China 1993) 169, 170 competition policy 13, 51 Constitutions: Brazil 178 China 116 Thailand 196 corporate governance 17, 134, 160, 166, 171–2, 174–5, 176, 198, 217, 253, 273 best practice in 278, 279 changes in overall patterns of 255 Company Law impact on 169 efforts to improve 165 failure to put in place adequate systems of 214 financial market structures and 11, 13, 25, 167, 242 highly bureaucratized 18, 268 hybrid forms of 155, 156 insider pattern of 16, 18, 19, 180, 181, 190, 191, 199, 253, 256, 268, 269, 271 outsider model of 242 reform of 55, 56, 168, 169, 234, 268, 270 resistance of listed firms to comply with international standards 236 specific features established with respect to 168 US-style formal rules relating to 20 corruption 3, 45, 85, 95, 99, 162, 165, 172, 176, 188, 196 allegations of 76 convictions for 59 n devolution of power to check 87 institutional reforms to curb 80 potential for 176 workers and students protesting against 126–7 Cortell, A P 24 Crabtree & Evelyn 83 n cronyism 76, 85, 189, 196 Crouch, C 5, 6, 10, 12, 19, 21, 23, 134 CSRC (China Securities Regulatory Commission) 170, 171–2, 175 Ctrip.com International 152 Cultural Revolution (China 1966–76) 31, 167 Culture Convenience Club 152 currency appreciation 58 current account surplus 213 CVC (corporate venture capital) 154 Cyber Agent 152 n 317 Index Daewoo 55, 234 Dahrendorf, R 14 Daihatsu 78 Dali 130 dango 52 Davis, J W 24 debt instruments 11, 233 deep power asymmetries 22–3, 128 democratization 12, 56, 62, 67, 124, 226, 247 developmentalism challenged by 59 state intervention combined with 280 sustained 267 Deng Xiaoping 33, 167 Denmark 260 deregulation 51, 56, 62, 64, 70, 93, 108, 156, 188, 192–4, 201, 252 banks lobby for 212 championed 52 corporate equity 80 employers’ demand for 148 entry barriers 229, 238 imperative to halt economic crisis 79 interest rate 54, 216 labour-market 55, 92, 94–100, 102, 103, 107 larger scale 213 policy trend towards 216 restrictions on foreign portfolio inflows 240 stockbroking commissions and settlement fees 236 Deyo, F C 8, 11, 69, 70, 93, 110, 115, 200, 257, 259 dirigisme 47, 56, 66, 95, 229, 233, 242, 252 dismissals 97, 98, 99 n., 119 collective 96 restrictions on 94 dispatch workers 114, 115 Dispatched Workers Act (S Korea 1998) 96 division of labour 49 n regional 59, 222 vertical 50 Dodgson, M 49 dominant coalitions 223–43 Doner, R F 194, 267 Dongguan 129–30 dotcom boom 145 double taxation 240 DPP (Taiwan Democratic Progressive Party) 58–9, 63, 65, 228, 239, 241 Driffil, J 145 Durkheim, E 14 Dwango (Japan) 152 n East Central Europe Eastern Centre for Legal Culture, 113 eBANK Corporation 152 economic growth 59, 71, 96, 118, 127, 160, 161, 163, 164, 165, 177, 186, 192, 212, 215, 221 318 achieving targets 167 allowing the private sector to drive 70 banking’s pre-eminent role in promoting 218 national consensus for 74 contribution of tertiary industries to 114 dependence on foreign firms to drive 76 primary source of 29 reducing the potential in rural areas 207 sustaining a minimum level of 162 economic liberalization: decisive turn to 127 political struggle for 62 pressures of 58 raising living standards through 167 substantial measures of 49 trade unions’ critical role in influencing 105 economic stagnation 4, 192, 230, 234 Ehrhardt, G 61, 64 EIS (S Korean Employment Insurance System) 97, 103, 104 EIUCR-Korea 231, 235 EIUCR-Taiwan 238, 239 Elder, M 52, 53 embeddedness 15, 23, 65, 70, 72, 140, 179, 186–7, 196–7, 206, 215, 272 employment, see atypical employment; lifetime employment Employment Promotion Law (China 2007) 116 employment relations 13, 17, 257, 270, 271, 273 essential features comparable across countries 12 government attempt to regulate 111 increased flexibilization of 115 key dimensions of 260 parallel changes across economies 259 unstable and short-term 19 variations in 261 Eng Teknologi Holdings 78 enterprise unions 18, 106, 149, 150, 269 solidarity in bargaining to overcome shortcomings of 145 entry barriers 57–8 deregulation of 229, 234, 237, 238 failure to lower significantly 232 EPB (Economic Planning Board, South Korea) 54 Erickson, C L 12, 259 Ernst, D 272 Esping-Anderson, G 12, 13 ‘ethnic bypass’ policy 75 Evans, P 15, 23, 69, 84, 114, 187 exchange rate controls 40 exogenous-endogenous forces 6, 13, 21, 22, 24, 59, 134, 135, 224 experimentalism 31 Export-Import Bank of China 169 n Index external shocks 180, 185 externalities: accumulating 160, 164 agglomeration 50 incentives to internalize 146 negative 160, 161, 162 family-run activities 32 Fan, J P H 253 n FDI (foreign direct investment) 68, 71, 74, 79 inward 176, 209 outward 58 FDI-SME linkages 78 federalism 45 Federation for Korean Industry 62 FEER (Far Eastern Economic Review) 229, 230, 237, 238, 239 Fields, K 10, 49, 56, 57, 155, 202, 203, 253, 265 financial architectures 16, 17, 181, 190–2, 195, 255 broad similarity in 180 unchanged 194, 197 tools for describing differences in 198 defining features of 223 salient institutional differences 242 variations in national configurations 13 financial crises, see Asian financial crisis; global financial crisis financial development 179, 181–5, 196 contemporary and future 197–200 interest-group theory of 186 politics of 159–78 Financial Instruments and Exchange Act (Japan 2007) 216 financial liberalization 11, 49, 54–5, 66, 180, 193–4, 196, 202, 213, 219, 221, 229, 232 accelerated 211 banks operating in economic environment of 208 capital account 210, 230 comprehensive package of 216 consequences of 197 interest rate 211, 212, 214 policy discourses favouring 185 trigger to a more extensive process 218 financial markets 21 bank-centred 11 changes in institutions for start-ups 137–45 ‘conversion’ of venture capital in 136, 155 regulation of 18 globalization of 60, 145, 154, 156 institutional interactions between labour markets and 132–56 liberalization of 11, 63 structures and corporate governance patterns 11, 13, 25, 167, 242 financial shocks 64 financial systems 159–79, 188–92, 197, 204–18, 223–5, 228, 236–43, 255, 270 bank-based, crucial changes to 11 Financial Times 35 Fiscal Investment and Loan Programme (Japan) 52, 218 fiscal policy 29, 38, 40, 42, 103, 192, 240, 241 redistribution 207 stimulus packages 43 Five Year Plan, 11th (China 2005) 34 fixed-term contracts 96, 97, 100, 128 extended 93, 149 FKTU (Federation of Korean Trade Unions) 105 Foot, R 164 Forbes 238 Fordist development strategy 62 foreign exchange 33, 41, 210, 221 controls relaxed 54 large reserves 277 opportunities for investors 212 controls 218 trade-related transactions 209 forward rates 209 Foshan 130 France 14 Francis, B 41 n Free Trade Commission ( Japan) 52 Frenkel, S 12 FSC (Financial Supervisory Commission, South Korea) 227, 234, 235, 236, 242 Fujian 118 Gabriele, A 38, 41 gaige/gaizhi 33 Gansu 118 Garnaut, R 36 GDP (gross domestic product) 4, 34, 43, 114, 165, 236 assets of banking sector relative to 181, 182 market capitalization and 75, 183, 184, 223, 224, 253, 254 R&D spending as share of 87 services the leading contributor to 79 Genting 82, 83, 85 Germany n., n., 30, 84, 276 evolving manufacturing 21 relative demise compared to emerging markets 133 Gerschenkron, A 46 getihu 32 Giles, J 33 Gingerich, D W 5, 11 GLCs (government-linked companies) 72, 75, 80, 81, 83 MNCs and 74, 78, 85 promotion of high-technology industries to be implemented through 77 319 Index GLCs (government-linked companies) (cont.) reform of 77 presence in key economic sectors 87 global financial crisis (2008–9) 3, 67, 120, 129, 130, 176, 216, 218, 247, 277 China’s response to 39, 42–4 recession following 72, 79 US sub-prime crisis and 214 globalization 4, 6, 12, 24, 47, 62, 67, 274 coping with 58, 239 financial 60, 224 national responses to 5, 49, 133, 247 prevailing logic of 66 resilience in the face of Globetronics Technology 78 GMO Internet 152 n Gold, T B 59 Gomez, E T 71, 75 n., 81, 82, 85, 189, 194, 199, 253 Gourevitch, P A 236, 242 governance 16, 84, 85, 91, 173, 264, 272, 280 business coalitions mobilized to prevent proposed changes in 277 conglomerate 152 cross-country variations in 265, 266 importance of 14 internal reforms 278 LME model of 242 national patterns of 12 personalized 15, 188, 197, 199, 267, 278, 280 long-term consequences for 279 shareholder value as a new ideology for 225 top-down 16 weak market-oriented rules 232 bank-centred institutions of 241 see also corporate governance governed interdependence 15, 48 Great Wall 171 n Green, S 170, 172 GTP (Government Transformation Plan, Malaysia) 80, 81 Guangdong 118, 121, 123 labour agitation 126 see also Pearl River Delta; Shantou Guangdong Federation of Trade Unions 122 Guangzhou 130 guanxiqiye 49 gufenhua 33 guihua gangyao 34 Guthrie, D 272 n Ha Yong-chool 55, 56, 62, 66 Haggard, S 195, 263, 269 Hahn Donghoon 266 Hai'er 36 Hall, M G Hall, P A 5, 11, 14, 21, 22, 60, 68, 134, 199, 242 320 Hamilton, A 84 Hamilton-Hart, N 189, 195 Hamrin, C 31 Hanbo 55 Hancké, B 5, 10, 14 Hashimoto, R 52 Hattori, M 213, 214 Hayashi, F 215 HDC (Halal Industry Development Corp) 77 Henderson, J 14 Hercules 137, 138, 139 Hewison, K 196–7 HICOM (Heavy Industries Corporation of Malaysia) 74, 75, 82 hiring and firing conditions 260 Holliday, I 9, 11, 12, 103, 263 Hollingsworth 133 Hong Kong 4, 36, 170 n., 221 pyramidal ownership 174 Hong Leong 82, 83 Höpner, M 14, 20 Horie, Takafumi 139 Hosokawa, M 148 Hou Bao-qin 92–3, 94, 95, 108 Hsing You-ien 42 Huang Yasheng 41 Huarong 171 n Huawei 38–9 Huchet, J.-F 272 n hukou system 92, 110, 124, 131 Hundt, D 226 Hung Mingyi 41 n Hutchcroft, P D.1993: 189, 192, 195 Hutchison, J 100, 192 Hyundai 235 Ibrahim, Anwar 75 ICBC 278 ICT (information & communications technology) 79, 215 ideal types 5, 56, 133, 199 ideology 14, 23, 31, 47, 126 global crusade against unionized labour 131 reduced cohesion 63 IFIs (International Financial Institutions) 65, 103, 225 IFRS (International Financial Reporting Standards) 216 IIC (incremental institutional change) 133, 134, 135–7, 145, 154–5 ILO (International Labour Organization) 103 IMF (International Monetary Fund) 55, 60, 62, 66, 96 n., 176, 195, 210 bail-outs and painful restructuring 196 World Economic Database n IMVP (International Motor Vehicle Program) 149 n Index income redistribution 207 incrementalism 31, 94, 107, 132 see also IIC India 4, 280 Indonesia 3, 4, 6, 68, 270, 275, 277 banking system 183, 184, 255 collapse of the New Order regime 195, 196 equity markets 180, 192 financial system 197, 255 deregulation 193 development 179, 196, 198, 199 founding families’ control of company shares 249, 250 labour relations 251 restructuring 196 personalized governance 188, 197, 199, 267, 278, 280 state issues: finance 194, 196 interference in allocation of credit 198 intervention declined 265 ownership and control significant in 249 widespread state enterprise ownership 190 transition from authoritarianism to democracy 279 see also Bank Indonesia; Soeharto; Yudhoyono Industrial and Commercial Bank of China 167 industrial policy 10, 46, 47, 48, 49, 50, 53, 57, 59, 60, 61, 67, 242 desire of state to harness financial markets for 16 functional 51, 57 horizontal 51 sectoral 54 strategic 66 targeted 52, 54, 56 industrial relations 6, 8, 12, 13 adverse implications for 149 increasingly fluid 242 poorly institutionalized 11 repressive policies 16, 95 reshaped 131 see also employment relations; labour relations Industrial Revitalization Law (Japan 1999/ 2003) 52, 53 industrialization 7, 10, 46, 54, 74, 207 advancing 69, 71, 85 drive towards 32, 84, 85 government a major force behind 202 innovation-driven 56 labour intensive, export-oriented 124, 125 mature 51 need to expedite 76 professionalization of management a key factor in 83 state-led 194 timing of Inner Mongolia 118 innovation performances 4, 19 institutional change 6–7, 53, 60, 269–70 and complementarities 241–3 continuity and 133–7, 248–63 contrasting perspectives on 134–5 defining 19–21 evolutionary process of 51 explaining 21–4 incremental 133, 134, 135–7, 145, 154–5 informal networks that may impede 62 reform and 91–109 risks of 66 state capacity as agent of 63 successful 23 successfully resisted 61 institutional complementarities 5, 9, 10, 21, 59, 134, 199–200, 242, 248, 280 lack of 243 largely underdeveloped programs of social protection viewed as 103 linking system coherence and stability to 135 institutional domains 10–13, 47 explaining change in 59–67 key 6, 9, 25 sticky 51 variation in 46 see also business systems; financial architectures; labour market regimes institutional reform 51, 66, 67, 77, 87, 88, 216, 247, 248 ambitious 175 conflicts and compromises over 226 curbing corruption and rent-seeking 80 domestic pressures for gradual 202 significant 202, 241 uneven 243 interest rates 218 controls relaxed 211 liberalization of 54, 211, 212, 214, 216 often negative 204 regulated 207, 208 inter-firm alliances 10–11 production strategy 50 internal labour markets 17 advancement opportunities within 97 growth of 18 highly developed 259 Internet 151 intra-firm relations 10 production strategy 50 investment banks 151, 152, 208, 215, 240 IPOs (initial public offerings) 41, 137, 143, 144, 145, 152, 169, 170 iron rice bowl system 111, 115 Islamic financial products 79 321 Index Jabko, N 24 Jackson, G 150 Jakarta 277 Japan 3, 4, 6, n., 30, 45, 74, 83, 165, 253, 275, 280 asset bubbles (1980s) 49, 51 banking sector 255 continuity and change 132–56 corporate shares 249 currency policy 40 diversified groups 50 dual economy 177 economic governance 267 employer-employee interdependence 250 evolution of industrial policies 47 evolving manufacturing 21 financial sector bureaucracies 64 firms created with banks 85 high-speed growth 47 institutional change 51, 53, 61, 66, 269–70 inter-firm ties 11, 50, 251, 252 large MNCs 86 leveraged influence 63, 65 lifetime employment 259 mature industrialization and need for innovative capacity 51 ‘networked’ capitalist economy 48, 49, 66, 266, 271, 277–8 pressure to adjust policy and institutional framework of industry 61 R&D spending as share of GDP 87 remodelling the developmental state 51–3, 66, 67 resistance to change 60 state action and capacity 63–4 state-business cooperation 84 state-led development 38 transition from high growth to ‘Lost Decades’ 201–22 wage bargaining 258–9 welfare provision 263 see also Daihatsu; Keidanren; keiretsu; kigyo shudan; Koizumi; METI; Mitsubishi; Nakasone; Osaka; Rakuten; Toyota; TSE; zaibatsu JASDAQ 137 n., 151 Jiangsu 41, 118, 121, 130 jihua 34 Jingzhou 130 job security 92, 95, 96, 97, 99, 102, 115 lifetime employment redefined as 150 Johnson, C 14, 69, 74, 83, 84, 203 joint ventures 53, 78, 85, 137 involving GLCs and MNCs 74 Jomo, K S 71, 75, 189, 194 322 Kang Soon-Hie 96 Kaufman, R R 263, 269 KCTU (Korean Confederation of Trade Unions) 105, 106 Keidanren 61, 146 keiretsu 49, 52, 68, 71 n., 154, 203, 206, 252 weakened 269 Keynesian measures 66 KH (Korea Herald) 233, 234, 235, 236 Khonkaen 101 n kigyo shudan 49 Kim Dae-jung 55, 64–5, 233–4, 235, 236, 274 Kim Dong-one 227, 234 Kim Young-sam 54, 64, 96, 229, 231, 233 Kittikachorn, Thanom 190 KLK (Kuala Lumpur-Kepong) 82, 83 n KMT (Kuomintang) 56, 59, 63, 87, 228, 237–8 Koizumi, Junichiro 52, 216 Kokosaka, M 52, 61, 201, 216, 217, 250, 257, 259, 271 Kondoh, H 57, 58, 63, 64 Koo, A Y C 272 n Koo Hagen 124, 125, 126 Korea, see North Korea; South Korea Korean Fair Trade Commission 55 KOSDAQ 234 Krishnan, T A 78, 85 Kroeber, A 35 KSE (Korea Stock Exchange) 229, 234 KT (Korea Times) 230 Kuala Lumpur 194 Kuok, Robert 82, 83 n., 85 Kuruvilla, S 12, 257, 259 Kwon Huck-ju 13, 103, 263 Labor Code (Philippines 1974) 98, 99 Labor Standards Act (S Korea 1997) 95, 96 labour conditions 116–17 Labour Contract Law (China 2008) 115, 116, 117 n., 120, 121, 127–8, 129, 130 Labour Dispatching Law (Japan 1985) 148 Labour Dispute Mediation and Arbitration Law (China 2007) 116 labour market regimes 10, 13, 16, 17, 199 core analytical dimensions of 257 crucial institutional changes in 131 how market-oriented reform has reflected and altered 91 institutional interactions between financial and 132–56 reform and institutional change 91–109 variations in national configurations 13 see also internal labour markets Labour Mediation and Arbitration Law (China 2007) 119 Labour Protection Act (Thailand 1998) 101, 102 Index labour relations 25, 95, 160, 177, 203, 209, 242, 251, 263, 267 attempt to assert greater adherence to law in 117 n capitalist-style 122 impact of changes in 154 internalized within firms 206 management of 100 structured, adversarial 108 Labour Standards Law ( Japan 2003 rev.) 149 labour unions, see trade unions laissez-faire 116 Lamberte, M B 192 land ownership 32 collective 125 land use rights 42 Lardy, N R 219 Latin America Laura Ashley 83 n law 116, 127, 128–31 see also antitrust legislation; also under various laws, e.g Commercial Banking Law; Company Law; Labour Contract Law; Labour Standards Law; National Labour Law; SOE Law Law of the People’s Bank of China (1995) 169 n lay-offs 33, 93, 94, 96, 97, 99, 128, 129, 163 mass(ive) 119, 130 Lazonick, W 86 LDP (Liberal Democratic Party, Japan) 61 Lee Changwon 227, 234 Lee Ching Kwan 95, 112, 119, 125, 163, 168, 177, 229, 257, 269, 276, 278 Lee Keun 266 Lee Myung-bak 275 Lee Pei-shan 228 Lee Wang Hwi 55, 56, 62, 66 legal mobilization 118–19 legitimacy 54, 126, 136 crisis of 167 need to rebuild 31 substantial blow to 49 Lehman crisis 216 n., 217 LG Electronics 278 Li Hongbin 41 n Li Peng 168, 169 Li Rongrong 37 Liaoyang 119 liberalization 12, 31–2, 40, 53, 60, 63, 67, 70, 102, 107, 133, 156, 192, 201, 217 authorities avoiding commitments made to openness and 39 broader consequence of 195 crucial changes brought about by 11 gradual 54, 211, 222 limited scope and cautious pace of 58 limited support for 79 opportunity for private bankers to push for 237 policy 270 political 47, 54, 56 significant steps to 51 tactics intended to subvert or reverse 62 uneven 229 see also economic liberalization; financial liberalization lifetime employment 18, 52, 132, 155, 206, 271 de facto displacement of 156 impact of institutional changes on 145, 149–50 long-standing tradition of 95 low levels of 271 shrinking core of jobs 259, 268 workplace characterized by 111 Limited Partnership Act for Venture Capital Investment ( Japan 1998) 140 Lin Chun 33, 34 Linfen 130 LinkShare Corporation 152, 153 Lion Group 83 List, F 84 Liu, L S 237, 238 Liu Liang-Yn 237 Livedoor scandal 139 Livelihood Protection Program (S Korea) 104 LMEs (liberal market economies) 10, 14, 134, 242, 259, 270, 271 arms-length competitive markets M&A (mergers and acquisitions) 215, 216 Ma Kai 34 Mahathir Mohamad 71, 74, 75–6, 77, 195 Mahoney, J 6, 20, 22, 136, 279 Malaysia 3, 4, 6, 68, 71–88, 190, 200, 270, 278 banking system 182–3, 184 basic approach to economic management 266 capital markets 255, 269 corporate wealth in SOEs 267–9 equity markets 180, 194, 199 financial system 179, 189, 196, 197 deregulation 194 development 198 structure 270 interethnic disparity in wealth 189 intermediate political regimes 275 labour relations 251 mobilizational regime 180, 188 ownership of companies controlled by founding families 249, 250 partial privatization 71 propensity of political leaders to shape corporate development 253 R&D spending as share of GDP 87 severe political crisis 195 323 Index Malaysia (cont.) state ownership and control 249 substantial growth 179 trade unions 266, 269 see also Bursa Malaysia; Mahathir; UMNO Mao Zedong 31, 110, 119 Marcos, Ferdinand 98, 99, 188, 189, 192 market capitalization 77, 138, 139, 151, 152, 194, 230, 234, 235, 237, 241, 255 GDP and 75, 183, 184, 223, 224, 253, 254 marketization 34, 131, 225, 242 broader effort to 169 perceived negative consequences of 45 Marry Brown 83 n Marx, Karl 21, 46, 67, 126 MAS (Malaysia Airlines) 75, 82 Maxis 78 MBC (Malaysian Biotech Corp) 77 MBM Resources 78 McKay, S 99, 100 MDeC (Multimedia Development Corporation) 77 Meiji Restoration (1868) 202, 203 METI (Japanese Ministry of Economy, Trade and Industry) 52, 53, 61 migrant workers: heavily exploited 122 most common problems for 120 not eligible for social security 34 numbers 118, 124 payment to 113 second-class citizenship status 125 Mikitani, H 151 Mikuni, A 202 n Minimum Livelihood Guarantee (China 1997) 104 minimum wages 94, 98, 99–100, 101, 116 localities allowed to freeze increases 130 Minns, J 47 n., 51, 55 n MITI (Japanese Ministry of Trade and Industry) 52, 203, 212 see also METI MITI (Malaysian Ministry of Trade and Industry) 74 Mitsubishi 84, 202 Mitsui 78, 84, 202 MMC Corp 83 MMEs (mixed market economies) MNCs (multinational companies) 22, 23, 86 GLCs and 74, 78, 85 hypermarkets 77 mini 272 SMEs and 79 modernization theory MOFE (S Korean Ministry of Finance and Economy) 54, 226, 227, 229, 231, 234 monetary policy 29, 54, 171, 208, 213, 234 324 limits on efficacy of money market as tool for 218 money supply 44, 165, 218, 219, 237 monopoly 32, 37, 39, 44, 121–2, 170 political 275 Moran, M 226 Morgan Stanley 240 Mothers (Market for High Growth and Emerging Stocks) 136, 137–40, 144 MUI Group 83 n Murphy, R T 202 n Muscat, R J 194 Nabeshima, K 82, 86, 87 Najib Razak 79, 80, 81, 87 Nakasone, Yasuhiro 216 nanxun 33 Nanyang 130 NAO (Chinese National Audit Office) 43 Nasal Japan 137 NASDAQ 137, 138, 144, 145, 155, 216 National Development Conference (Taiwan 1996) 241 National General Mobilisation Act (Japan 1938) 203 National Labour Law (China 1994) 112, 116 egregious violations of 114 National People’s Congress (China) 112–13, 116 national welfare 175, 177 Naughton, B 31, 35, 36, 42, 93, 163, 164, 165, 167, 170, 171, 172, 175, 272 NBFIs (non-bank financial institutions) 230, 232, 233, 234, 241 insolvent 235 NDRC (Chinese National Development and Reform Commission) 34 NEM (New Economic Model for Malaysia) 80 neoliberalism 30, 31, 65 ascendance of American-trained economic bureaucrats 54 simultaneous implementation of developmental state and 72 NEP (Malaysian New Economic Policy) 72, 74 nepotism 76, 85 Nestlé 77 network capitalism 202–4 New Left 32 new stock exchanges: institutional interaction between venture capital and 141–3 layering of 136, 137–9, 145, 155 Ngo Tak-wing n NGOs (nongovernmental organizations) 23, 62, 106, 127 labour-oriented 104 official unions and 121–4 Ninth Malaysia Plan (2006–10) 79 n Index Nissan Oppama Factory 149 ‘Nixon Shock’ 210 Noguchi, Y 204 Nölke, A 5, 8, 14 norms: behavioural 20, 23 formal 273 informal 16, 20, 267, 273 lifetime employment 271 neoliberal 66 sociocultural 49 see also social norms North Atlantic-centrism North Korea 22, 55 n Northeast Asia 223–43 Nowland, J 249 NPLs (nonperforming loans) 161, 162, 165, 166, 168, 169, 173, 176, 215 problems with 159, 167, 171, 177, 219 ODR (official discount rate) 208 OECD countries 229, 243, 276 OEM (original equipment manufacturing) 50, 57 oil shocks 147, 209 Okazaki, T 203, 221 Okuno-Fujiwara, M 203 Oliver, C 136 Olson, M 146, 160 Osaka Stock Exchange 137 OSS (outsourcing and shared services) 79 Park Hun Joo 252 PBOC (People’s Bank of China) 43, 167, 169 n., 171 Pearl River Delta 122 see also Dongguan; Foshan; Guangzhou; Hong Kong; Shenzhen Peetz, D 12 Pekkanen, R 53, 61, 63, 64 PEMANDU (Malaysian Performance Management and Delivery Unit) 80 Pempel, T J 195 Penrose, E T 69 n pension funds 141, 142, 235, 236 People’s Liberation Army (China) 39 Pepinsky, T B 160, 188, 195, 253 Perodua 77, 78 PEZA (Philippine Economic Zone Authority) 100 Philippines 6, 101, 106, 180–1, 195, 270, 280 banking system 182–3, 184, 255 deregulation 108, 193 equity markets 180, 183, 192 financial development 197, 198, 199 financial system 179, 255 labour market changes 98–100 ownership of companies controlled by founding families 249 mediocre growth outcomes personalism/clientelism 91, 188, 190, 267, 280 policy-making subservient to interests of oligarchs 188–9 political instability 190, 195, 197 small, family-based firms 98, 104 state interference in allocation of credit 198 growth 179 transition from authoritarianism to democracy 279 weakening of labour’s political efficacy 200 see also Labor Code; Marcos; Ramos Pierre, G 94 n Pirie, I 47 n., 55, 62, 65, 274 planned economy 203 Plaza Accord (1985) 40, 213 PNB Equity Resource Corporation 78 POEA (Philippine Overseas Employment Administration) 100 Polanyi, K 21, 116, 187 politics: conflict 3–4, 65 hierarchy 160–5 instability 4, 190, 195, 197 labour 103–4 POSCO 85, 278 PPB Group 82 Prescott, E C 215 price controls 44, 54 private banks: establishment of 54, 58, 64 scaled down lending to manufacturing sector 239 privatization 29, 33, 35, 36, 40, 45, 51, 52, 55, 66, 72, 74, 100, 105, 114, 193, 197, 201, 230, 231, 235, 250, 271 acceleration of 119, 241 consequence of 195 business interests rewarded by 194 collusive deals 59 n persistence of 80 endorsement of 70 gradual 58 introduction (mid-1990s) 32 opposition to 31 partial 54, 70–1 politicized 59, 63 promotion of 71, 76, 85 renationalized major projects 75 sustained 252 trade union protests against 241 widespread 31 worker protest slowing down 119–20 Pro-democracy Movement (China 1989) 126–7 profitability 35, 39, 167, 173, 211, 215, 228 325 Index Proton 74, 77, 78 Public Bank 82, 85 public procurement projects 52 pyramidal structures 83, 162, 174–5 Qiao Jian 115, 124 Qingdao 36 qiye jituan 33 Quek Leng Chan 85 R&D (research & development) 78, 86–7 Rae, K 36 Rajan, R G 8, 9, 11, 186 Rakuten 133, 151–4, 156 Ramesh, M 9, 13 Ramos, Fidel 192 real estate 213–14 recessions 22, 24, 48, 54, 66, 72, 78, 79, 140, 240, 274 global 22 prolonged 60, 148 reciprocity 16, 267, 273 Redding, G 10, 160, 248, 251, 252, 272 n reform 91–109, 168–9 see also institutional reform Regional Cluster Plan (Japan 2001) 53 Rengo 146, 148, 149 Renong/UEM 82 resource allocation 14, 252 Reynolds, P 75 Richet, X 272 n rights violations 116–17 ROE (return on equity) 211 Roh Moo-hyun 55, 233–4, 235, 236 Roh Tae-woo 54, 229, 231, 233 Roy, K C n., 15 Royal Selangor 83 n rural-urban hierarchical citizenship 124–5 Sako, M 21, 52, 61, 135, 136, 145, 146, 150, 152 n., 201, 216, 217, 250, 257, 259, 271 Samsung 55 Sanya 130 SASAC (Chinese State-owned Assets Supervision and Administration Commission) 35–6, 37, 38, 166, 169, 172–3, 175, 177 Sato, Y 196 savings 11, 167 recycled 204 household 165, 208, 212 promotion and protection of 207 negative real interest rates for 204 SOE-controlled 52 scandals 77, 139, 145, 234 Scarpetta, S 94 n Schmidt, V A 6, 14 Schneider, B R 5, 8, 14 326 Schumpeter, J A 21 Searle, P 71, 75 n SEC (Taiwanese Securities and Exchange Commission) 242 Second National Economic Census (China 2008) 37 Secret Recipe 83 n Securities and Exchange Act (Japan 1948/ 1981) 204 n SEI (Taiwan Statute for the Encouragement of Investment) 57 SEL (Taiwanese Securities and Exchange Law) 237 Semkow, B W 237 service sector 114, 115, 117, 124, 251, 259 low-wage industries 124 protected and unproductive 61 small-scale industries 32 Shandong 130 Shanghai 36, 41, 118, 130, 169, 170 n., 176 Shanghai Automotive Industry Corporation 36 Shantou 130 Shanxi 118 Sheng, A 238 Shenzhen 36, 169, 170 n migrant workers 118 Shih, V 43 Shinawatra, Thaksin 196–7, 200, 276, 278 Shinhan Financial 278 Shinn, J 236, 242 shocks 22, 59, 64, 134, 146, 147, 180, 185, 207, 209, 210 Shonfield, A 133 Shunto 136, 145–6, 147, 150, 155–6 demise of 258–9 Sibal, J V 99, 108 Sichuan 43, 118 SII (Structural Impediments Initiative) 213 Silicon Valley 145, 154, 272 Singapore 3, 4, 29 n., 68 banking system 182, 194 dependence on inward FDI and multinationals 176 emergency swaps of dollar liquidity 277 equity markets 194 intermediate political regimes 275 leading domestic enterprises 85 liberal variant welfare regime 13 ownership of companies controlled by founding families 250 pyramidal ownership 174 R&D spending as share of GDP 87 rapid growth (1960s & 1970s) selective privatization 70–1 state-led system 176, 249, 278 siyouhua 33 SK Group 234 Index Sloane, P 71, 75 n SME Association 79 n SME Bank 77 SMEs (small- and medium-sized enterprises): banks expand loans/credit to 214, 216, 230, 239 Bumiputera-owned 74 collective action problems plaguing 57 difficult to access money to tide through 43–4 downstream 49 n., 62–3 entrepreneurial 77, 87 fears that extensive corporate restructuring would harm 64 government endeavour to tie to GLCs and MNCs 77 institutional variations between large firms and 271 labour-intensive 63 non-Bumiputera-owned 78, 79 owned by ex-employees of MNCs 78 promotion of 76, 226, 233 relations with banks 206 trade links between MNCs and 77 social conflict 3–4 attempt to reduce 128 social insurance 102–6 social movements 22, 24, 63, 124, 126 disorganized 121 NGO-led 106 transnational 23 social norms 14, 15, 23, 24, 66, 146 perception of lifetime employment as 150 social security 103, 104, 107, 113, 262 government spending on 260 migrant workers not eligible for 34 social services 92, 94 basic 34 commodification of 104 see also welfare socialist market economy 33, 34 SOE Law (China 1988) 168 Soeharto, Raden 188, 190 SOEs (state-owned enterprises) 16–18, 36, 38, 52, 100, 111, 161, 173, 176, 177, 251, 252, 273 arbitrated disputes 118 attempts to reform 168 banks’ close financial ties with 218 benefit from relationship with 40, 41 budgetary grants and subsidies replaced with bank loans 167 capital-intensive 56, 62–3 centrally-controlled 115–16 closure of 34 corporate wealth in 269 divestment of some of the largest 235 employment contracts 108, 272 enabling many to corporatize 169 financial performance of 166 keeping workers employed at 219 labour market reform 94 local government influence over 170 loss-making 165 magnitude of urban employment among 163 management of 166–7, 168, 172, 175 ministries that heavily depended upon 231 monopoly of 37, 44 new sources of funding for 170 predatory financing of 175 privatization of 59, 63, 230, 235, 241 protests among laid-off workers 104 share of industrial output produced by 266 smaller and less efficient encouraged to merge 33 substantial reduction in employment 92–3 successful 35 tougher standards on 171 upstream 49 n., 56, 57, 62–3, 65 welfare provision that prioritized workers 263 Soesastro, M H 193 SoftBank 137, 145, 152, 155 sogo shosha 212 Solinger, D 93 Soskice, D 5, 14, 68, 134, 199, 242 South China Morning Post 83 n South Korea 3, 4, 6, 46, 95–8, 107, 203, 238, 251, 253, 255, 263 augmentation in worker social protections 102 basic mode of organizing economic activity 265, 266 centre-left governments 276 Chinese labour regime and 110–31 civil society and greater rule of law 278 conglomerate organizational structure 50 dependence on inward FDI and multinationals 176 economic decline 22 economic performance 243 emergency swaps of dollar liquidity 277 employers facing pressures to increase flexibility 259 ensuring survival of the state 45 evolution of industrial policies 47 financial system 223–4, 228, 241, 242, 270 founding families’ control of company shares 250 globalization rhetoric 274 growth deceleration 280 high-speed growth 47, 51 impact of democratic reforms on health policy 104 n inter-firm ties 11 327 Index South Korea (cont.) intra-firm and intra-group production strategy 50 irregular workers 104 labour regulatory requirements relaxed 108 large MNCs 86 leveraged influence 63 mature industrialization and need for innovative capacity 51 neo-liberal norms 66 political struggle for economic liberalization 62 private banks 239 pyramidal ownership 174 R&D spending as share of GDP 87 rapid growth (1960s & 1970s) retreat from the developmental state 54–6 shareholder value 225 shift to democracy 276, 279 state-business co-governance 85, 91 state-led development 38 state ownership and control significant in 249 state-capital linkages 84 substantial internal diversity 271 successful development trajectory 49 trade unions 105–6 transition to information- and service-based industries 91 waning capacity of the state 48 welfare 13, 58, 263 see also BOK; chaebol; Chun Doo-hwan; Daewoo; Dispatched Workers Act; EIS; Federation for Korean Industry; FKTU; FSC; Hyundai; Kim Dae-jung; Kim Young-sam; KCTU; KSE; Labor Standards Act; Lee Myung-bak; POSCO; Roh Moohyun; Roh Tae-woo Southeast Asia inter-firm ties 11 political economy of financial development 179–200 state-business linkages 68–109 see also Indonesia; Malaysia; Philippines; Singapore; Thailand; Vietnam speculation 62, 172 Sports Toto 75 spot rates 209 start-ups 132, 133, 156 changes in financial market institutions for 137–45 institutional interactions for 150–4 new stock exchanges opened for 137, 155 State Council (China) 113, 163 n., 173, 175, 177 Research Report on China’s Migrant Workers (2006) 116 Structural Reform Office 34 see also SASAC 328 State Economic and Trade Commission (China) 172 state intervention 15, 16, 48, 49, 60, 68, 69, 70, 72, 96, 194, 199, 253, 267, 278, 280 decline of 15, 20, 58, 265, 266, 267, 280 direct 198 hierarchical, top-down 189 increased 45, 52, 55 patterns of 9, 69 state-market condominium 15 Statute for Industrial Innovation (Taiwan) 59 Staveteig, S 114 Stiglitz, J E 15 stock exchanges 140, 165, 217 developed rapidly 165 nascent 169 new 136, 137–9, 141–3, 145, 155 see also ASX; Bursa Malaysia; Hercules; JASDAQ; KOSDAQ; KSE; Mothers; NASDAQ; Taipei; TSE stock markets 71, 85, 169–70, 172, 175–6 actively employed to transfer wealth 75 partially privatized banks expanded equity financing through 54 state promoted financing for established firms 58 Streeck, W 5, 6, n., 14, 19, 20, 21, 22, 52, 134, 154–5, 270, 276 subsidiaries 36, 146, 154, 217, 239 venture capital 140, 143 subsidies 52, 56, 58, 167, 177, 204 fiscal 38 preferential 54 SUI (Taiwan Statute for Upgrading Industries) 57, 59 Suizhou 130 Sun Liping 45 Sweden 260 Taipei Stock Exchange 237, 238, 239, 240, 241 Taiwan 3, 4, 6, 45, 46, 56–9, 60–1, 176, 270, 275, 280 adapting the developmental state 56–9 basic mode of organizing economic activity 265, 266 China and 50, 59, 238 civil society and greater rule of law 278 collective action 265 diversified business groups 49 economic performance 243 employers facing pressures to increase flexibility 259 ensuring survival of the state 45 evolution of industrial policies 47 financial system 223–4, 225, 228, 236, 237–43, 255 growth deceleration 280 Index high-speed growth 47, 51 hi-tech firms and sectors 253 impact of democratic reforms on health policy 104 n institutional capacity and autonomy 65 interactive relationships in firms 251 inter-firm ties 11, 252 labour market polarization 259 liberal-conservative orientation 13 long-term reciprocal commitments 265–6 mature industrialization and need for innovative capacity 51 niche market strategy 50 ownership of companies controlled by founding families 249, 250 pressures to open its economy 66 professionalization of management 83 rapid growth (1960s & 1970s) reform programme 66 shareholder value 225 shift to democracy 276, 279 significant transformation 67 small-scale OEM 50 SMEs 62–3, 68, 226 state-capital linkages 84 state-led model of capitalism 48 substantial internal diversity 271 successful development trajectory 49 top ten companies 85 upstream SOEs 62–3, 65 welfare 13, 260, 263 see also Chen Shuibian; DPP; KMT; Taipei; TSMC Takahashi, W 52 TanXia 239 tax breaks 38, 40, 52, 57 Telcom Indonesia 278 Tenth Malaysia Plan (2011–2015) 80 Teranishi, J 203, 207 Tesco 77 Thai Rak Thai (political party) 106, 196–7 Thailand 3, 4, 6, 68, 195, 251, 255, 270, 275, 277 banking system 183, 184 bureaucracy 188, 189–90 deregulation 108 equity markets 180, 192, 199 financial development 197–8 financial liberalization 193–4 financial structure 270 labour market changes 100–2 ownership of companies controlled by founding families 249, 250 restructuring 196 personalism/clientelism 91 personalized governance 267 political instability 190, 197 rapid political turnover 188 small, family-based firms 98, 104 state ownership and control significant in 249 substantial growth and deepening of financial system 179 see also Bank of Thailand; Shinawatra; Thai Rak Thai Thanarat, Sarit 190 Thatcher, Margaret 23 Thelen, K 6, 20, 22, 52, 134, 136, 154–5, 279 Thomas, S C 170 Thurbon, E 46, 54, 55, 58, 265 Tianjin 118 Tianzi, see Unirule Tokyo 277 Toyota 78, 149 Trade Union Law (China 1992/2002) 116, 121 trade unions 80, 104, 117 n., 122–4, 147, 168, 206, 231, 264, 266 control over 92, 96 fragmented 269 independent 105, 106, 121, 126, 127, 272 influence of 18, 19 official 128 organizational cohesion and capabilities 267 organizational strength of 257 political ascendancy of 12 protests against privatization 241 shift of power employers 155–6 social networking across firms and 265 subjected to suppression 76 subordinate 115 weak 11, 16, 19 see also ACFTU; collective bargaining; enterprise unions; FKTU; KCTU; Rengo; wage bargaining transaction costs 14, 232, 234, 236 transition 56, 91, 167–8, 201–22, 279 Tripartite Commission (S Korea) 235 Tsai, K 58, 59, 63, 65, 272 n TSE (Tokyo Stock Exchange) 137, 138, 139, 140, 143–4 TSMC 278 Tung, A.-C 50, 57, 58 TVEs (Township and Village Enterprises) 33, 41 typologies 5, 6, 7, 8, 9–19 ul-Haque, I 50 UMC (United Microelectronics Corporation) 59 UMNO (United Malays National Organisation) 72, 76, 79, 81, 84, 87, 189 UMW 78 Underhill, G R D n., 15 unemployment insurance 97, 98, 128 Unger, D 194, 267 Unico Holdings 78 Unirule 37, 38 329 Index United States n., 71, 139, 275 n foreign aid from 190 financial architecture 255 hiring and firing conditions 260 pressure on Japan to open markets 212–13 relative demise compared to emerging markets 133 venture capital 141, 143 see also NASDAQ US Federal Reserve 277 Usaha Tegas 83 value chains 114 global 48, 57, 60 regional 48 varieties of capitalism, see VoC approach VAT (value-added tax) 42 venture capital 58, 136, 137, 144, 151, 155 corporate 154 partial conversion of 139–43 slow conversion of 145 Vietnam 3, Vliegenthart, A 5, 8, 14 VoC (Varieties of Capitalism) approach 68, 134, 150, 253, 259 changing 6, 7, 8, 19 differences among 180, 197 diversity of practices within 270–3, 278 enduring 263–70, 274 evolution of 46 features of 199, 248 ideal-typical 199 networked 192 recent critiques and revisions of Vogel, E F 211 Vogel, S K 9, 48, 51, 53, 64, 65 Wade, R 7, 8, 55, 58 n., 69, 84, 203 wage bargaining 18, 136 collective action in 156 union influence at firm level 268, 270 see also Shunto wages 12, 125, 126 arrears of 105, 117, 119 discretionary rights in setting 93 equitable 80 excess 275 n flexibility in 206, 259, 272 labour regulations to protect 95 low(er) 115, 124, 259 non-payment of 113, 117, 120, 130 overtime 113–14, 117, 130 reduced 119 seniority system 52 summary deductions 115 see also minimum wages Wain, B 76 n 330 Waldner, D 187 Walter, A 11, 13, 20, 53, 55 n., 56, 61, 64, 164, 187, 190, 201 n., 236, 242, 250, 256, 271, 274, 278 Wang, H R P 128 Wang Hui 31 Wang, J.-S 239 Wang Jen-hwan 50 n., 55 Wang Junmin 272 n Wang Xinyuan 43 Wang Yan 250 Wank, D 40 Weber, M 133 Weiss, L n., 9, 14, 15, 48, 52, 54, 56, 57, 58 n., 63, 65, 198, 253, 265 welfare 16, 63, 103, 110, 118, 134, 164, 236 aggregate 160, 162, 163, 166 cradle-to-grave 111 distributive 160, 166 new popular demands 58 reforms that would privilege national local interests 175 selective and poorly public-funded programmes 269 spending on 66, 260, 262, 276 welfare provision 10, 17, 36, 257 coverage and quality of 263, 270 degrees and modes of 13, 263 efforts to strengthen 260 family-centred 11 government commitment to spreading 34 governments reliant upon the market for 269 increased roles of states in 12 limited and weak in privately owned firms 18 lingering elements of productivism in 268 extensive in SOEs 18 role of families in 263 role of the state in 264 social inclusiveness of 264 variations in regimes 264 welfare regimes/systems 8, 13, 34 conservative 263 country-specific features 12 cross-country variations 12 institutional variations 12–13 productivist 263 variations in provision 264 workers’ rights curtailed 111 Wen Jiabao 163, 169, 172–3, 175 Wenzhou 32 White, G 31 Whitley, R 5, 8, 10, 83, 133, 248, 250 Wilding, P 9, 11, 103, 263 Williamson, O E 14 Winters, J A 186 Witt, M A 160, 251, 252, 272 n Index Wong, J 104 n., 265 Woo Wing Thye 195, 237 Woo-Cumings, M 203, 277 worker protests 119–21 Workers’ Compensation Fund (Thailand) 101 n World Bank 94 n., 168 WSJ (Wall Street Journal) 105, 237, 240 WTO (World Trade Organization) 32, 33, 39, 93, 114, 168, 176 Wu Jinglian 170, 175 Wu Yu-Shan 50 n Xiamen 130 Xiao Geng 37 Xinhua News Agency 172 Xinjiang 118 Xu Xiaonian 250 Yang Yao 33 Yantian Port 120 n Yao, R 35 Yeh, K C 272 n Yen-Dollar Committee (1983) 213 Yeoh, Francis 78, 85 Yep, R 34 Yongdeng 130 Yoshihara, K 70, 85, 198 YTL Corp 78, 82, 83 Yudhoyono, S B 278 Yusuf, S 15, 82, 86, 87 zaibatsu 71 Zaikai 155 Zainuddin, Daim 75 zaitech 214 Zhang Xiaoke 1, n., 15, 55 n., 160, 187, 190, 201 n., 253, 271 zhanlue zhongyao bufen 37 Zhao Xiao 33 Zhejiang 41, 121, 130 Zheng Bijian 163 Zheng Yongnian 45 Zhongguo Tongji Zhaiyao 114 Zhouzhi 130 Zhu Rongji 168, 169, 171 zhuada fangxiao 33 Zhuang Juzhong 253 n Zimbabwe 22 Zingales, L 8, 9, 11, 186 Zweig, D 32, 33 331 .. .East Asian Capitalism This page intentionally left blank East Asian Capitalism: Diversity, Continuity, and Change Edited by Andrew Walter and Xiaoke Zhang Great Clarendon... Dominant Coalitions and Capital Market Changes in Northeast Asia Xiaoke Zhang 223 Part Five Conclusion 12 Understanding Variations and Changes in East Asian Capitalism Andrew Walter and Xiaoke Zhang... changes and illuminating the trajectory and pattern of these Debating East Asian Capitalism: Issues and Themes changes both within and across the key institutional spheres of the East Asian political