Stitch,
<<political and official corruption seems less rampant in the former then the latter.>>
When we talk about corruption we always focus on the "political and official" side, the proverbial bureaucrat with his hand out that we all know so well. What's really threatening to bring the curtain down, though, (IMO) is corruption in the private sector. Nepotism, cronyism, and cash-milking are as prevalent in Asian private companies as they are in government. A lot of the old family-held companies have officially gone public and brought in outside shareholders, but the management practices have not changed much, and the welfare of the family is still considered a more important management objective than the welfare of the company. Welfare of the outside shareholders is pretty low on the priority scale, which is why it will continue to be difficult to attract them.
Philippine executive salaries, for example, are officially way below others in Asia, but the lifestyles seem well above the level of the official numbers. Doesn't take an abacus to figure out where the excess cash is coming from.
Barring major changes in the situation, I still don't see imminent devaluation in China or Taiwan. Considering political and economic factors (there's hardly a difference any more), the loss would outweigh the gain.
Steve |
