Asian godfathers are those few individuals who have controlled the economy of the Asian countries because of the vast wealth they have. In man’s history, it has been evident that t power and money go hand in hand. If one has money then he or she will have power and authority. Through this power and money, these Asian Godfathers have continued to create more and more wealth through influencing the government and authorities in winning tenders and contract and also being protected from potential competitors, who are less wealthy. This way, they have monopolized many industries in the region. This monopoly has given them the power to charge the prices the way they suit and favor them, in making huge profits. Their close associations with the government have enabled them to get lucrative deals from the government and in doing so they continue to generate more wealth.
Scarcity of resources like money is what has made many industries not to prosper. If one has enough money then the issue of scarcity of resources will not be the major problem. In this case, the Asian Godfathers have the money consequently their businesses will tend to prosper if they get a better management.
In a free market, the quality of the products and their price in the market are very closely related. An industry which utilizes its resource efficiently will produce cheap products hence they will have a bigger market share and consequently higher profits. The Godfathers have used their wealth to invest in resources which will make their businesses, as is the case with their American counterparts, prosper. Money not being the issues to these godfathers, their industries or businesses will have the required resources which maximizes the profits hence creating more wealth to these businessmen. These businessmen can be able to charge lower prices than the competitors because they are able to keep their costs lower and this will result in them having large numbers of customers.
Big business empires are associated with rich people. These businesses have many advantages in the market since they are able to take advantage of the economies of scale to make larger profits than small and medium sized businesses. These businesses produce products in volumes and this will lead to lowering their production cost consequently they can charge lower prices which in return will attract more customers and the end result will be higher returns. This will continue generating more wealth to these businessmen.
Many businesses have risen and others have fallen in these Asian countries because of the influence these Godfathers have. Since the industry and commerce are dynamic, it has led to some businesses rise that is those businesses which keep up with the dynamism of industry and commerce and other fall that is those which remain static in this dynamic commerce and industry. In order to protect their wealth, wealth businessmen have improvised a mechanism of monopoly. This is where they ensure that their business do not have competitors. This is done by influencing powerful people in the government to protect them from the competitors. Since politicians need money, these wealth businessmen makes deals with politicians that they will support them during their campaigns and they will in turn got protection of their businesses.
Despite of the methods these businessmen make their wealth, there are major differences between how the Asian Godfathers make their wealth and their American counterparts. First, in the Asian countries families or people behind they company matters while in the western countries is the company that matters more than the founders of the company. Through such family ties, the Asian industries are aware of the market trends and can do business with each other for effectively hence growth of their businesses.
To what extent have the Asian Godfathers succeeded in creating wealth?
Asian businesses are based on family connections. This has lead to these businessmen knowing more about the market and the players in the market who can be able to sell their products. This has made these businessmen to prosper and consequently creation of more wealth. This family ties connect people with different types of jobs from the politicians to big players in the business industries within and around the Asian countries. These connections make it possible to exploit the available business opportunities since any opportunity which arises and any member of the family comes aware of it, they communicate and see whether the opportunity is worth undertaking. This has made the Asian industries to proper hence making the players in such industries to create more wealth.
To what extent have they succeeded in expropriating that wealth?
The Asian Godfathers have the power to dictate what the government should do to them and as a result of these; they are able to expropriate any property of others more easily without any legal actions being taken against them. The power to influence the government has played a major role in the Godfathers breaking the law and infringing on other people’s rights.
To what extent have they succeeded in maintaining repressive dictatorial political regimes?
The Asian Godfathers have the money or wealth and every politician needs money to stay in power. The Godfathers have used this fact that politicians need money to run the government to exert they power on these politicians. The back up the politician who they fell will serve their interest and not the interest of ordinary people. This has led to the politicians to align themselves along these Godfathers and they do follow what these Godfathers tell them to do. This influence from the Godfathers has made it possible for the government to impose some rules on others which is not necessary the case with a democratic type of leadership.
Since these influence of Godfathers favor them and their businesses, those businessmen who are not closely associated with the government of the day will loose heavily and their business will fall even if the business could have been a good venture and which could have benefitted the majority of the ordinary citizens. This explains why there are only fifty families dominates a large populates of millions of people in terms of wealth. This kind of system of favoring a few members of the population is very dictatorial and against the rights of the majority.
It can be argued that this creation of wealth has raised the living standards of ordinary people but this has been done on the expense of their right to create more wealth of their own. People may raise their living standards but the question which will be asked is: who are the majority beneficiaries of the wealth created? It is better therefore that the ordinary people be given the chance to exploit their potential in the business industry free from and influence from minority group or the Godfathers.
Are there signs that Milton Friedman will ultimately be proven correct?
Milton Friedman thesis is of a free market and capitalism to produce wealth and improved standards of living with the improved standard of living producing disposable income and consequently the disposable income producing political freedom and limitation of oppression. This thesis is a long way to be realized in the Asian countries which does not advocate for free markets or capitalism. They favor monopoly where few players benefit at the expense of the majority. Though this can create wealth and improve the standard of living of ordinary people, it will always come at a cost since there will disposable income to a few and political freedom will be compromised. This will result to increased oppression to the ordinary citizens.