Taiwan was listed in 10th place on The Economist’s second index of crony capitalism, which gives an indication of how much the livelihood of people in certain nations or cities depends on close relationships between businesspeople and government officials.
The index is compiled with the use of data such as a nation’s total wealth in comparison with its GDP, the Forbes rankings of its billionaires and the source of their wealth.
In this year’s rankings, The Economist listed 22 economies that it described as the five richest ones, the 10 biggest emerging ones for which it had reliable data and a selection of other nations where cronyism is a problem.
Taiwan’s score has improved, down three places from its ranking in the 2014 index. Its crony wealth was assessed as 3.2 percent of its GDP, compared with 5.5 percent in 2014.
The higher the ratio, the more likely it is that the economy is suffering from a severe case of crony capitalism, the magazine said.
In its report on the new index, published on Saturday, The Economist said developing economies accounted for 43 percent of global GDP, but 65 percent of crony wealth.
Among the big nations, Russia still scored the worst, in reflection of its “corruption and dependence on natural resources,” and was moved to the top of the list from No. 2 in 2014, the magazine said.
Russia’s percentage of crony wealth in proportion to its GDP was estimated at 18 percent.
It was followed by Malaysia (13 percent), the Philippines (11.3 percent), Singapore (10.7 percent) and Ukraine (6.7 percent).
China — including Hong Kong — was ranked 11th, although in absolute terms it has the biggest concentration of crony wealth in the world, at US$360 billion, the magazine said.
However, once China’s wealth was compared with its GDP, its listing came in “only 11th on our ranking of countries,” the magazine said. “Were all billionaire wealth in China to be classified as rent-seeking, it would take 5th spot in the ranking.”
“Rent-seeking can involve corruption, but very often it is legal,” the London-based magazine said, adding that the term means the owners of a unit of production — land, labor, machines or capital — extract more profit than they would get in a competitive market.
“Cartels, monopolies and lobbying are common ways to extract rents,” the magazine said. “Industries that are vulnerable often involve a lot of interaction with the state, or are licensed by it.”
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
LOOPHOLES: The move is to end a break that was aiding foreign producers without any similar benefit for US manufacturers, the US Department of Commerce said US President Donald Trump’s administration would make it harder for Samsung Electronics Co and SK Hynix Inc to ship critical equipment to their chipmaking operations in China, dealing a potential blow to the companies’ production in the world’s largest semiconductor market. The US Department of Commerce in a notice published on Friday said that it was revoking waivers for Samsung and SK Hynix to use US technologies in their Chinese operations. The companies had been operating in China under regulations that allow them to import chipmaking equipment without applying for a new license each time. The move would revise what is known
UNCERTAINTY: A final ruling against the president’s tariffs would upend his trade deals and force the government to content with billions of dollars in refunds The legal fight over US President Donald Trump’s global tariffs is deepening after a federal appeals court ruled the levies were issued illegally under an emergency law, extending the chaos in global trade. A 7-4 decision by a panel of judges on Friday was a major setback for Trump, even as it gives both sides something to boast about. The majority upheld a May ruling by the Court of International Trade that the tariffs were illegal. However, the judges left the levies intact while the case proceeds, as Trump had requested, and suggested that any injunction could potentially be narrowed to apply
RSS