This book is an easy and engaging read about the richest businessmen in South East Asia. It discusses the business and economic aspects of this clearly in layman’s terms, spiced up with a flavour of the lifestyles and personalities of these ‘godfathers’ in South East Asia. Joe Studwell is well placed to discuss these issues – he is the editor of the China Economic Quarterly, and is a director of the Asian research firm Dragonomics.

The book provides a wealth of detail on the operations of the business empires of the South East Asian ‘godfathers’. Joe describes the way politicians have, since colonial days, given a select few businessmen in South East Asia concessions over basic monopolies across the region, notably natural resources and key services such as transport and gambling, and how this has created the ‘godfather’ class. He argues that it was the guaranteed cash flow from these monopolies that funded wider diversification into other activities, rather than pure business acumen per se. He observes that the ‘godfathers’ do little manufacturing production themselves, but facilitate entry of multilaterals and take a cut, and deduces, from a range of evidence, that their strongest suit is trading and shrewd relationship management rather that managing production. He argues cogently that they have slowed the growth in South East Asia, rather than stimulating it.

Studwell maintains that the godfathers are also a key reason for the sluggish South East Asian stock market growth, and contributed to the 1990s financial crisis. He describes, with examples, the way the godfathers manage their complex web of shareholdings to transfer profits from quoted companies. He also gives detail of how godfathers have been periodically bailed out by politicians when they have run into problems, from state-owned banks and also direct from public coffers.

He does not, though, blame the godfathers for their actions. In his view they are a product of their environment. It has, since colonial days, suited the region’s politicians to have rich businessmen who are dependent on them, and can provide services ranging from political finance to lucrative directorships for them and their families and lavish accommodation when they travel. The godfathers fulfil their wide range of roles very effectively. Further responsibility has to lie with the politicians.

The economics in this book is coherent and sensible, but the book is largely a review of the cultural and business aspects of the godfathers’ operations, rather than an economics-based text. But overall the book succeeds admirably in its aim of describing and explaining the phenomenon of these South East Asian billionaires.

Amanda Rowlatt