ABSTRACT
This chapter aims to elaborate on existing models of the state in Asia and build a theory on state influence on Human Resource Management (HRM) that incorporates pressures from supranational institutions and global value chains. Asian states prompted political scientists to theorize about a third model of state in which the state plays a strong and often interventionist role in economic development by leading, or selectively providing targets and incentives to key businesses. The global context that conditions state influence on HRM includes pressures from supranational institutions, norms and standards governing global value chains, and pressures from global financial interests. A form of supranational institutional pressure arises from international framework agreements—labor agreements covering more than one national jurisdiction and involving one or more national and/or international trade unions. The privatization and liberalization of assets that ensued after the Asian financial crisis of 1997 demonstrates that global financial interests can affect state policy toward labor, entrepreneurship, and investments in skills development.
