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Miracle to Meltdown in AsiaBusiness, Government and Society$
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Norman Flynn

Print publication date: 1999

Print ISBN-13: 9780198295525

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198295525.001.0001

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Democracy, the Economy, and the Crisis

Democracy, the Economy, and the Crisis

Chapter:
(p.91) Chapter 5 Democracy, the Economy, and the Crisis
Source:
Miracle to Meltdown in Asia
Author(s):

Norman Flynn

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198295525.003.0006

This chapter asks what light the economic crisis throws on the state of democracy in the region. It is concerned with the impact of the political regime on the crisis and of the crisis on the democratic process. In the longer term, democracy may be associated with economic growth. If it is the case that networks allocate resources less efficiently than markets, then a society based on expressive network ties will be less rich than one based on dispassionate economic calculation. This chapter asks whether the development of democracy has reduced the power of the patronage networks. It then gives examples to provide some answers to this question. First, it looks at Taiwan which provides a paradigm case of transition from authoritarianism to democracy. Second, it turns to Korea, an example of a military regime turned democratic, then Malaysia, which has been called ‘semi-authoritarian’ or ‘authoritarian populist.’ The crisis showed Indonesia as the paradigm case of ‘crony capitalism’ as the Suharto regime's business interests became clear. The Philippines has a history of democratic elections since the end of martial law in 1986.

Keywords:   economic crisis, democracy, political regime, expressive network, networks, Taiwan, Korea, Malaysia, Indonesia, Philippines

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