ABSTRACT
Government–business relations refer to the enduring institutional relationship between government and business in the economy and society. East Asian countries are typical late developers and share important commonalities in their government–business relations. At the early stage of development, a politically stable authoritarian government dominated the business to achieve developmental goals. Although there were close ties between government and business, the government exercised a clear upper hand in their relationships. As development proceeds, however, government–business relationship changed gradually from dominance to partnership mainly as a result of the diversified business that become a global player, and the growing middle class and democratization that weakened the autonomy and capacity of the developmental state. But the government in East Asian countries may play more direct and aggressive roles whenever it is necessary as shown in the process of overcoming the financial crisis. As globalization and information revolution continue, government–business relations are more likely to be diversified. Huge multinational corporations can enjoy relative independence from government, while small and medium enterprises need more assistance and perhaps guidance from the government.
