Asia was a shining star in the world economy for most of the 1980's and 1990's. The secrets of its success were often a subject of intense debate. Plaudits cited Japanese economic power, Confucian work ethics, the freeing of China's market, Eastern integrity and the powerful overseas Chinese guanxi networks. Critics were dismissed as ignorant of Asian values.

But behind the facade lay a darker, more sinister truth. In this remarkable account, leading analyst Michael Backman tears away the myths of Asian business and reveals the dark side of the Asian success story. 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. It will remain an indispensable guide to the complexities of corporate Asia for years to come.

Highlights include :

China - rising star or black hole ?
Japan - high level corruption, organized crime and poor corporate governance
Indonesia - the ultimate victim of Soeharto's rampant cronyism
Donorgate - President Clinton's campaign funds and the Asian connections
Corporate Asia - What really happens to shareholders' money

BOOK REVIEW

Michael Backman has words of praise for Dr Mahathir. " There is one thing in Malaysia that is more important than first rate highways and sound drinking water; it's the sense of self confidence. This, more than anything, is Mahathir's greatest achievement - he has taught Malaysians, but especially Malaysia's ethnic Malay population, to be confident.

"And if one wants to see what a nation of people with little self-confidence is like, one need only travel to Indonesia where pathos is one of the few commodities not short in supply. It's for this reason that Dr Mahathir might well be regarded as one of Asia's greatest leaders," Backman says.

" His relentless and self driving attacks on the West and his ridiculous tirade against currency trader George Soros at whose feet Mahathir put much of the blame for Asia's economic crisis when it first emerged, are more easily forgiven when they are seen for what they are- attempts to deflect the attention of Malaysians from their own ethnic and cultural divides so that they can stand united against a common foe.

" Indonesia's reaction to the crisis, on the other hand, was to look for scapegoats at home- and months of violence directed at its ethnic Chinese community was the result."

According to Backman, there was several differences between the two sets of offspring. The Soeharto children's style of business was based on "snatching anything and everything as quickly as possible- the plutocratic equivalent of a 'smash and grab'".

Also,  many of the Soeharto (businesses relied on monopolies and licensing bestowed by the government. In contrast, the Mahathir sons have relatively narrow interests in which they have sought to become expert and then build on this expertise. Their acquisitions are based more on strategy than opportunism and generally aren't reliant on government bestowed licensing and other privileges," Backman points out.

Another major difference is that "debt and share issues have funded the Mahathir businesses, whereas opportunistic gifts of equity from foreign investors were important for the Soehartos' business expansion," Backman adds.

While conceding their status as sons of the prime minister has been helpful, Backman argues the Mahathir sons would have been successful anyway - given the fact that they were foreign educated and their parents were both doctors.
 
COMMENTS
 
" Mr Backman's great achievement is to answer the really important questions about why the Asian crisis erupted. This book uncovers a great deal which Asian companies and government would like to remain under wraps."

Steve Vines
The Independent's correspondent in Hong Kong
Author of Hong Kong : China's New Colony

" A gold mine of facts...it should be required reading for every foreign banker and fund manager arriving in Southeast Asia."

Philip Bowring
Columnist, International Herald Tribune

" Timely and highly readable, a must for anyone in Asia daring to get into a business deal, make a deposit in a bank, or even buy a share."

Anthony Paul
Editor-at-Large (Asia)
FORTUNE

" Backman has uncovered a vast amount of hard-to-find information. On top of that, he has brought these characters to life and provides a crucial missing link in the coverage of business in Asia.

Justin Doebele
Forbes Global

" This book gathers together, like no other volume I've seen, a stupendous catalogue of business shortcomings and outright commercial mischief occurring in Asia during the long years of unparalleled prosperity."

James Clad
Professor of Asian Studies
Georgetown University
Author of Behind the Myth : Business, Money & Power in Southeast Asia.

" Asian Eclipse helps to put Asian risks into their proper perspective. The region still offers great potential, but realizing that potential will not be nearly as easy as many were assuming. This book shows with numerous examples the major obstacles that stand in the way.

Robert C. Broadfoot
Founder and Managing Director
Political and Economic Risk Consultancy, Ltd (PERC)

" Michael Backman's book offers some penetrating insights into the seamier side of Asian business...The work also offers a rare glimpse into the highly successful, though often secretive, overseas Chinese business networks world-wide."

Rosalie L Tung
The Ming & Stella Wong
Professor of International Business
Simon Fraser University