3 - The Power of Networks of Connections

Summary

This chapter looks at how Asia’s connections world is configured, highlighting the extraordinarily pervasive nature of ties between business and politics and the networks on which they are based. Most of these relationships are strongly transactional but they also affect how individuals and companies organise themselves. For example, the institutional framework for private companies is often designed to leverage resources and assets, as well as gaining advantage, whether in relation to the regulator or competitors. We use a novel dataset with information on politically-exposed persons and institutions throughout Asia to map the various networks at the level of each country. There are significant differences between countries, mainly resulting from the variation in political systems. The network maps are complemented by detailed cases and examples from across Asia. Whatever the local variation, these webs of connections bind together with common purpose. Leveraging connections for mutual benefit delivers large and enduring benefits that have mostly proven resistant to changes of government or even political regime. Such behaviour also cuts across political systems.