Malaysia's political economy : politics, patronage and profits

Edmund Terence Gomez, Jomo K.s. Includes Bibliographical References And Index. This book is an insightful and accessible analysis of contemporary Malaysian business and politics. The authors use the concepts of rent and rent-seeking as tools to study the Malaysian political cconomy, tracing the ways in which political patronage influences the accumulation and concentration of wealth. The book is unique in that it considers the impact of both party politics and economic development on the relationship between politics and business in Malaysia. It provides up-to-date discussions of government-led change in Malaysia's business community and traces the emergence of a Malay business class alongside the longestablished Chinese business class.Authors Gomez and Jomo argue that governments can achieve their political and economic goals by careful use of rents. The book explores the formulation and implementation of policies that shape the allocation of these rents, and the economic and political consequences of their distribution. The book starts with an historical overview before focusing on the nature and outcomes of the New Economic Policy and the Vision 2020 statement announced by Prime Minister Mahathir in 1991. It also contains a number of richly detailed case studies which reflect the authors' knowledge of the contemporary Malaysian corporate world and its political relationships.In this second edition, the authors examine how the 1997 Asian currency, liquidity and financial crises have impacted on Malaysia's economy. Their discussion canvasses various economic policy responses, including capital control measures, as well the ensuing economic recession and political turmoil.This book is timely, given rising concerns about increasing inequity in society, widespread corruption and the influence of political patronage on the business sector and the 'new rich'. It will be essential for all students of the Malaysian economy, politics and society and of interest to general readers. "Using the concepts of rent and rent-seeking as tools to study the Malaysian political economy, the authors explore how political patronage influences the accumulation and concentration of wealth. The book considers the impact of party politics and economic development on the relationship between politics and business in Malaysia, and provides up-to-date discussions of government-led change in Malaysia's business community, including the emergence of a Malay business class. In this second edition, the authors examine how the 1997 Asian currency, liquidity and financial crises have impacted on Malaysia's economy. Their discussion canvasses various economic policy responses, including capital control measures, as well the ensuing economic recession and political turmoil."--Jacket