Ties That Bind

When the colonial era closed at the end of the second world war, South Korea and Taiwan were just as impoverished as the new nations of Southeast Asia: indeed, South Korea was much poorer than the Philippines. Today, with GDP per capita of about US$19,000 in South Korea and US$15,000 in Taiwan, those countries are three to four times richer than Malaysia and 10 to 12 times richer than Indonesia and the Philippines. The difference is political choices that in one part of Asia are creating free societies and globally competitive companies and in another sustain a superannuated economic aristocracy.

Studwell is the author of "Asian Godfathers: Money and Power in Hong Kong and South-East Asia."

© 2007