When economists explain the financial crisis that hit the “tiger economies” of Indonesia, Malaysia and South Korea, among others, in 1997, some reach for the term “crony capitalism”. A cosy relationship between governments and firms distorted markets. The ensuing currency crises can be blamed on close ties between businesses, banks and politicians, rather than on panicky investors. Companies took excessive risks, safe in the knowledge that economic institutions were designed for their benefit. It was because of this rot that everything came tumbling down.

This article appeared in the Finance & economics section of the print edition under the headline “Everyone has their price”