Capitalism with Asian characteristics

Many speakers pointed out that with economic crises in Europe and the U.S. still unresolved, following the western capitalist model blindly is not the right development path for Asia, which should instead develop its own model, utilising traditional practices.

This was a theme reflected in a keynote speech given by Ho Kwong Ping, whose Banyan Tree Holdings has developed a chain of luxury hotels across the world based on Asian tastes and standards.

Still, he warned that Asia’s rise is not predetermined and argued that the continent must produce a basket of intellectual solutions to address Asia’s chronic social inequality.

"China has a deficit of democracy (while) Indian leaders have realised that democracy is not reducing inequality" and both are unable to "move beyond capital reforms," he noted.

"As Asia continues its dynamic growth we need to delve into our own history and culture for inspiration to develop Asian values of capitalism. One resource could be the webs of mutual obligations which are present in virtually all civilisations of Asia," argued Ping. "It is possible for Asia to develop this communitarian capitalism, if properly nurtured and developed, as an alternative to the highly individualistic model of American capitalism."

Ping singled out India’s Tata model of capitalism, which benefits from being "stakeholder driven and not shareholder driven."

Tata’s Gopalakrishnan told IPS that most Asian businesspeople have been reading books written by Westerners and adopting their ideas only because there are hardly any books written about good practices by Asians.

"The West is…saying we must become conscious capitalists (though) many people in Asia are saying we have always been doing that," he said.

Read it at IPS Inter Press Service
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