Xiaoke Zhang - The Political Economy of Capital Market Reforms in Southeast Asia (International Political Economy)

International Political Economy Series

General Editor: Timothy M. Shaw, Professor and Director, Institute of International Relations, The University of the West Indies, Trinidad & Tobago

Titles include:

Pradeep Agrawal, Subir V. Gokarn, Veena Mishra, Kirit S. Parikh and Kunal Sen

POLICY REGIMES AND INDUSTRIAL COMPETITIVENESS

A Comparative Study of East Asia and India

Roderic Alley

THE UNITED NATIONS IN SOUTHEAST ASIA AND THE SOUTH PACIFIC

Dick Beason and Jason James

THE POLITICAL ECONOMY OF JAPANESE FINANCIAL MARKETS

Myths versus Reality

Mark Beeson

COMPETING CAPITALISMS

Australia, Japan and Economic Competition in Asia-Pacific

Deborah Brutigam

CHINESE AID AND AFRICAN DEVELOPMENT

Exporting Green Revolution

Shaun Breslin

CHINA AND THE GLOBAL POLITICAL ECONOMY

Kenneth D. Bush

THE INTRA-GROUP DIMENSIONS OF ETHNIC CONFLICT IN SRI LANKA

Learning to Read between the Lines

Kevin G. Cai

THE POLITICAL ECONOMY OF EAST ASIA

Regional and National Dimensions

THE POLITICS OF ECONOMIC REGIONALISM

Explaining Regional Economic Integration in East Asia

Steve Chan, Cal Clark and Danny Lam (editors)

BEYOND THE DEVELOPMENTAL STATE

East Asias Political Economies Reconsidered

Gregory T. Chin

CHINAS AUTOMOTIVE MODERNIZATION

The Party-State and Multinational Corporations

Yin-wah Chu (editor)

CHINESE CAPITALISMS

Historical Emergence and Political Implications

Abdul Rahman Embong

STATE-LED MODERNIZATION AND THE NEW MIDDLE CLASS IN MALAYSIA

Dong-Sook Shin Gills

RURAL WOMEN AND TRIPLE EXPLOITATION IN KOREAN DEVELOPMENT

Jeffrey Henderson (editor)

INDUSTRIAL TRANSFORMATION IN EASTERN EUROPE IN

THE LIGHT OF THE EAST ASIAN EXPERIENCE

Takashi Inoguchi

GLOBAL CHANGE

A Japanese Perspective

Dominic Kelly

JAPAN AND THE RECONSTRUCTION OF EAST ASIA

L. H. M. Ling

POSTCOLONIAL INTERNATIONAL RELATIONS

Conquest and Desire between Asia and the West

Pierre P. Lize

PEACE, POWER AND RESISTANCE IN CAMBODIA

Global Governance and the Failure of International Conflict Resolution

S. Javed Maswood

JAPAN IN CRISIS

Ananya Mukherjee Reed

PERSPECTIVES ON THE INDIAN CORPORATE ECONOMY

Exploring the Paradox of Profits

CORPORATE CAPITALISM IN CONTEMPORARY SOUTH ASIA (editor)

Conventional Wisdoms and South Asian Realities

Cecilia Ng

POSITIONING WOMEN IN MALAYSIA

Class and Gender in an Industrializing State

Fahimul Quadir and Jayant Lele (editors)

DEMOCRACY AND CIVIL SOCIETY IN ASIA: VOLUME 1

Globalization, Democracy and Civil Society in Asia

DEMOCRACY AND CIVIL SOCIETY IN ASIA: VOLUME 2

Democratic Transitions and Social Movements in Asia

Ian Scott (editor)

INSTITUTIONAL CHANGE AND THE POLITICAL TRANSITION IN HONG KONG

Mark Turner (editor)

CENTRALLOCAL RELATIONS IN ASIAPACIFIC

Convergence or Divergence?

Ritu Vij

JAPANESE MODERNITY AND WELFARE

State, Civil Society and Self in Contemporary Japan

Fei-Ling Wang

INSTITUTIONS AND INSTITUTIONAL CHANGE IN CHINA

Premodernity and Modernization

Fulong Wu and Chris Webster (editors)

MARGINALIZATION IN URBAN CHINA

Comparative Perspectives

Xiaoke Zhang

THE POLITICAL ECONOMY OF CAPITAL MARKET REFORMS IN SOUTHEAST ASIA

International Political Economy Series

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Series Standing Order ISBN 9780333711101 paperback

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The Political Economy
of Capital Market Reforms
in Southeast Asia

Xiaoke Zhang

Associate Professor in Political Economy and Asian Studies, University of Nottingham, UK

Xiaoke Zhang 2011

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission.

No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS.

Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages.

The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988.

First published 2011 by
PALGRAVE MACMILLAN

Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS.

Palgrave Macmillan in the US is a division of St Martins Press LLC, 175 Fifth Avenue, New York, NY 10010.

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Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries.

ISBN 9780230252820

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin.

A catalogue record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data Zhang, Xiaoke.

The political economy of capital market reforms in South East Asia/Xiaoke Zhang.

p. cm.

Includes bibliographical references and index.

ISBN 9780230252820

1. Capital marketGovernment policyAsia, Southeastern. 2. Asia, SoutheasternEconomic conditions. 3. Asia, SoutheasternEconomic policy. I. Title.

HG5740.8.A3Z43 2011

332.0415095dc23 2011021395

10 9 8 7 6 5 4 3 2 1

20 19 18 17 16 15 14 13 12 11

Printed and bound in Great Britain by

CPI Antony Rowe, Chippenham and Eastbourne

For Meng-Jie and his generation

Contents

List of Tables

Acknowledgements

In the research and preparation of this book, I accumulated debts to various individuals and institutions. I benefited from the assistance of the Research Department of the New Straits Times, the Central Library of the University of Malaya, the Institute of Southeast Asian Studies and the Thailand Information Centre of Chulalongkorn University. I extend my appreciation to the many interviewees in Malaysia, Singapore and Thailand who consented to take the time to discuss their views with me and to generously share their knowledge. I thank the following people for helping me to improve the central argument of this book in one way or another: Andrew Baker, Phil Cerny, Phil Cowley, Edmund Terence Gomez, Eric Helleiner, Duncan McCargo, Pasuk Phongpaichit, Thitinan Pongsudhirak, Geoffrey Underhill and Andrew Walter. Thanks are also due to the anonymous reviewer who provided extensive and constructive comments on the book. While carrying out field research for this study, I received financial support from the British Academy and the Asia Research Fund of the University of Nottingham. Finally, Timothy Shaw, the series editor, and Rene Takken and Alexandra Webster at Palgrave Macmillan provided a generous mixture of advice and guidance at crucial points. Needless to say, the responsibility for all errors and omissions remains solely with me.