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Packed with detail, this book should be the bible for anyone considering doing business in Asia, but is also accessible to the lay reader. The chapters end with excellent case-studies that provide rare and fascinating insights into some of the more shady corporate practices in the region, including President Soeharto's ventures, and also the contributors to Clinton's 1996 campaign funds. Backman recounts many incidents from firsthand experience, reflecting the wealth of knowledge he has accumulated from his extensive time in Asia. --Neelam Dongha

Resonates Well With My Own Exerience in Asia   October 4, 2003

In sum, the book serves as a stern warning about commonplace business practices in Asia. It also serves as a good bit of contemporary regional financial history. Finally, I do not believe that any of the players learned the appropriate lessons from the various Financial Meltdowns, large and small and/or country-specific or regional. As is often the unfortunate case, the movers and shakers in this region of the world learned all the wrong lessons. Rather than opening up, reforming, and tackling their problems in a sincere and concerted fashion, they have chosen to insulate themselves, beseech their governments to bail them out, and spend precious time and resources shifting the blame- almost always to foreigners.


It's not Asia bashing, its great storytelling!   August 30, 2001
  1 out of 1 found this review helpful

Backman's Asian Eclipse is the kind of expose that newspaper editors in Asia can only dream about. Not only does it provide a framework for understanding Asian business culture, it reveals in excruciating detail of the shenanigans in Corporate Asia?s largest boardrooms.

As the latest attempt to offer reasons for the Asian Crisis of 1997, it goes further than most treatments by delving into the institutional, political and social causes that underlie the culture of corruption, cronyism and managerial incompetence in Asia's former 'tiger' economies. The surfeit of detail is also the book's greatest weakness as it sometimes reads like a genealogy. However, this weakness it is trivial compared to the rich descriptions of the family-based power structures that govern much of East Asia.

The central thesis of Backman's book is that poorly paid civil servants, opaque bureaucracies, antiquated government systems and a compromised media act to subvert capital markets so they act like free ATM machines to feed the empire building lusts of Asian conglomerates at the expense of minority shareholders, and local tax payers. To back up this claim, the author offers a grand tour of the history and development of business culture in Asia. In the process, he also reveals the complicity of the multinationals and their mad race toward the lowest ethical standards to buy the cooperation of local politicians, thus feeding the nascent culture of corruption.

Backman is not as sanguine about the 'Asian Way', as many writers on the region seemed to be. He traces the origins of Asian business culture to the Confucian system of responsibilities and obligations between superior and subordinate. In this system, he argues, are clearly established lines of authority and responsibility that engender trust. In an economic context where contract law is undeveloped and institutions are unstable, a reliance on Confucian ethics provided the only reliable form of governance. What this system cannot do, having been created in an era of village feudalism and not global business, is to set out a similar code of rights and responsibilities between insiders (the family) and outsiders (non-family stakeholders). Outsiders are treated with suspicion, deception, and guile. Extreme forms of opportunism, driven by Sun Tzu's Art of War tactics, are routinely encountered by minority shareholders, foreign business partners, taxpayers and other 'outsider' stakeholders. The Art of War is a treatise designed to win wars with mortal enemies and thus emphasizes the use of deception, subterfuge, and unscrupulous tactics. Little wonder that foreigners find doing in business in Asia such a legal and ethical minefield.

Thus, the Asian crisis of 1997 was not the result of a series of random events but the logical outcome of a corrupted system with minority shareholders, foreign companies, bank depositors, and taxpayers as its unwitting victims. The main players in this game are corrupt government officials at the highest levels, high-ranking military officers, and the Overseas Chinese families who provide the business networks through which expropriated public funds are sterilized.

While readers of the book should critically consider the author's conspiracy theory of the activities of the Overseas Chinese, there is no question that it offers some of the best treatments of business in Asia and of the 1997 crisis than any book that has been written on the topic. In addition to the fact that it is easy to read and highly entertaining, it's carefully researched and well-documented treatment allows the reader to go beyond the standard stereotypes of Asian business heretofore promulgated by a business press enamoured with the illusory growth of the 1980s. In short, the reader should conclude, as I did, that the Crash of 1997 was self-inflicted, and not the work of currency speculators, neo-colonialists, or the 'evil' IMF!

The book concludes with a startling analysis. Contrary to the more optimistic, the author depressingly suggests that countries have not learnt from the lessons of the Crash of 1997. He cites the continuing inability of the Indonesian government to enforce laws designed to hold businesses accountable for their problems, the continuing delay in enforcing bankruptcy laws in Thailand, the Renong (business arm of the ruling political party) bailout in Malaysia, and the pulling back from serious corporate reform by South Korea's chaebols, as evidence that the region is poised to repeat the same errors in the future by rebuilding 'along the same fault lines' (page 379).

While he doesn't suggest that foreign investors disengage from the region, he does offer some suggestions to reduce the inherent risks. Investors should pay attention to building relationships before engaging in business negotiations. Part of relationship building should be devoted to knowing one's local partner as transparency and disclosure are unfamiliar concepts to many Asian businesses. Investors should regularly conduct due diligence and independent audit exercises to verify partner claims. That cronyism costs more in the long term than it yields in the short term, as demonstrated in Indonesia, strongly suggests that foreign investors stay away from all temptations to play the political connection angle. Finally they should be wary of approaching local banks for financing since these banks may often be affiliated with local competitors.


Interesting and informative   March 27, 2001
  6 out of 6 found this review helpful

Backman clearly has extensive knowledge of the complex Asian business structures that encompass families, holding companies, cross holdings and often governments. Furthermore, he presents his detailed knowledge in an readable format that is relatively easy to follow. He gives excellent insight into the workings of Asian businesses, their unwillingness to disclose information and the dangers associated with hidden transactions, creative accounting and inefficient (family) management. The research Backman has gathered in this book is priceless and thorough.

Though I would never claim to be an expert on Asia myself, having lived more than 10 years in the region, I found that I was often grinning to myself in agreement with Backman's observations. Backman further managed to fill in many blanks I have in my Asian business knowledge, having grown up to realise only the social aspects of the various cultures here.

This book is an excellent read and a good reference guide for non-Asians doing business in Asia. I also suspect it's useful for Asians doing business outside their own countries, since often these sort of cross-border, cross-cultural relationships can be tricky in the region.


Tough appraisal of 'Asian miracle'   June 15, 2000
  1 out of 2 found this review helpful

This is a solid book and an entertaining read. The author is not particularly profound in his analysis, but at least he is not just another neo-liberal ideologue. He understands that business is embedded in wider society, and that this fact fundamentally influences the business culture. I especially liked the portraits of major players, and the other telling details. Overall, not really deep, but an interesting coverage of Asia's economic woes.


A Dangerous Book For Unsuspecting Minds   March 18, 2000
  4 out of 5 found this review helpful

There is no doubt that this book was very well researched. The stories are very detailed and cover the most important companies in the Asian region. However, precisely because it was well researched, it is a dangerous book for unsuspecting minds.

The author may have stayed in Asia for a long time. He may also have written articles and books about the region. But like most western authors, he had falsely believe that such qualifications make him an expert on Asia. He clearly misunderstood Asia on many counts.

For example, he mentions that the Confucius believes in ancestor worship. That is incorrect. In the Analects, it was recorded that Confucius when asked about the afterlife would rather his disciples concentrate on matter of the living. He did not comment on anything related to ancestor worshipping at all.

It would have been inconsequential for the author to have such beliefs and the book would still have been great if the author had stuck to reporting the events surrounding Asian companies. However, he chose to inject his flawed beliefs into the book by explaining in flawed reasoning why the failures of Asian companies occurred.

Unsuspecting readers or readers who do not understand Asians well thus tend to fall for his flawed logic as factual events lends credence to his reasonings. The author should have stuck to being a journalist and not venture into being a socialogist.

I recommend this book to anyone who is interested in Asian large business and the economic collapse of Asian countries in 1997-1998. It is a comprehensive book on the subject. However, when the author starts telling you why certain things happen or how asians think, skip those parts. Specifically, skip chapter 1 and the last chapter.