Corporate Governance, Crony Capitalism and Economic Crises: Should the Us Business Model Replace the Asian Way of Doing Business?

14 Pages Posted: 5 Jul 2006

See all articles by Ajit Singh

Ajit Singh

United Nations; University of Cambridge

Ann Zammit

University of Cambridge - Faculty of Human, Social, and Political Science

Abstract

This paper considers the Greenspan/Summers/IMF (GSI) argument that the Asian way of doing business was the deep cause of the Asian crisis. The IMF reform programme for the crisis-affected Asian countries suggested they should abandon the Asian business model and adopt the US corporate model. The main findings are: (a) contrary to GSI doctrine, poor corporate governance and lack of competition are not common characteristics of the Asian business model; (b) the stock market-based US business model has severe limitations for developing country corporations, not least because of imperfect share prices and the imperfect market for corporate control.

Suggested Citation

Singh, Ajit and Zammit, Ann, Corporate Governance, Crony Capitalism and Economic Crises: Should the Us Business Model Replace the Asian Way of Doing Business?. Corporate Governance: An International Review, Vol. 14, No. 4, pp. 220-233, July 2006. Available at SSRN: https://ssrn.com/abstract=914235 or http://dx.doi.org/10.1111/j.1467-8683.2006.00504.x

Ajit Singh (Contact Author)

United Nations ( email )

New York, NY 10017
United States

University of Cambridge ( email )

Austin Robinson Building
Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom
+ 44 1223 350434 (Phone)
+ 44 1223 740479 (Fax)

Ann Zammit

University of Cambridge - Faculty of Human, Social, and Political Science ( email )

Cambridge, CB3 9DD
United Kingdom

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