This document looks at changes in Asia's attitudes to money and wealth. Taken forward, this culminates in an exciting new possibility for the culture of money.

1. Money talks
By Krishnan Subramanian
A couple of incidents last week triggered this article.
First, a friend was surprised that I still withdraw cash every month to manage my
household expenses. He was perplexed on the reasons for using cash in a
completely carded economy. And then, the very next day, I suffered the ire of a
teller when I landed up on his window with a bagful of 50 cents coins to load my
prepaid card. Both, in different ways, felt I was a perfect example of a dinosaur
that continues to remain in the “old economy”.
These incidents prompted the thinker about changes in society’s attitudes to
money and wealth.
As one ruminates on this topic, it important to distinguish between the cause
and effect of these attitudes. A number of cross-cultural markers indicate the
three fundamental underlying causes that are the reasons for our changing
attitudes -
1# Cultural supremacy of the intellectual class is now rapidly changing in favour
of the moneyed. Confucianism, Brahminism, Shintoism – religious and social
constructs that feted intellectuals as the epitome of social mobility are now
shifting in favour of those with money (or appearances thereof!)
2# Demography is gravitating to both ends. Due to better life expectancy and
delayed marriages, there is an exploding youth generation and an increasing
aged population, along with a significant gap between them.
3# Centralized government controls is giving way to free market mechanisms.
Across Asia, there is a slow movement towards what can be best described as
free market socialism, away from strict central government control. This is letting
lose a spirit of entrepreneurism.
These three causes of class, demography and free market, both independently
and combined, result in a number of shifting attitudes to money in Asia.
1# Acting rich betters being rich. While being rich is important, it is not as
important as looking rich. Ever notice that the first pay cheque goes into buying
a Rolex or a Louis Vuitton? In worse conditions, go fake but play the part. As a
reaffirmation of this cultural tension, in a affluent survey, the corporate
designation / title was seen as more important then club memberships and
home ownership for enhanced social status.
2# Ostentation gives way to being comfortable with wealth. China's "New
Aristocracy" is more at ease with its newfound wealth. Unlike the Russian
oligarchs, these people tend to steer clear of vulgar displays of opulence. From

2. another perspective, they are making their new money into old money - buying
art, travelling widely, buying property and sending their children to private
schools and universities in Britain or America.
3# Optimism trumps conservatism. Most youth in Asia are a generation of
people not exposed to poverty or hardship unlike their parent’s generation. This
makes them optimistic risk takers who are willing to take chances unlike their
conservative parents. This is reflected in the growing number of affluent Chinese
consumers who describe themselves as self employed / freelancers (15% from
virtually nil a decade ago).
4# Spending beats saving. To a generation that is not aware of poverty /
hardship, spending comes easy (or so say their parents generation who save as
much as 30% of their incomes for a ‘rainy day’ or a calamity). This has spawned
the emergence of the “Bobo” (bourgeois bohemians) subculture. A Bobo is one
who “demands the best from life, seeks products of exquisite taste and quality,
and chooses products that display character”. In essence, a Bobo pursues
money so that he/she can indulge in a form of materialism and vanity that was
unheard-of in the past.
5# Materialism over philanthropy. With the absence of a safety net from the
state, in Asia, it has always been understood that the individual fends for himself.
Under this principle, the family comes first, the individual comes second, and
charity comes a distant third. In these circles, a Traditionalist is a rather mirthful
description of an entrepreneur who ‘claims’ that the money he had made was
for society, not for himself.
6# Smart conquers correct. Ethics has a fluid definition in Asia. Smart ways of
working around the bureaucracy are not seen as morally compromising. ‘Getting
it done quickly’ takes precedence over ‘getting it done right’. In some ways, this
is natural for transitioning economies with a high rate of growth? But, taken to
an extreme, this can be construed as ‘trickery’. This line can be very thin and
convenient!
7# Easy money surpasses working hard. The Chinese have a term for it – It’s
called accidental money. Money through inheritance, gambling, risky and
speculative investments – all of it falls under this term. While the earlier
generation across Asia had a protestant work ethic, today’s generation prefers
the easy money. And this has ramifications across a wide spectrum from job
changes to returns expectations from investments.
8# Money as validation in contrast to money as necessity. This is a more
nuanced tension. Our western counterparts have experienced continuous
generations of consumption and have become more self-actualized towards
money. However, Asians are still likely to be in their first or second generation of
consumption, hence see this as a barometer of success and self-identity. Asia is
about bigger, newer, more compared to the international LOHAS (Lifestyle of
Health and Sustainability) trend. Any wonder that China will soon be the second

3. largest luxury market in the world?
9# Family ‘face’ still overrules individual ambition. Respect for the extended
family / community / local society runs deep in Asian societies. Hence while
individual ambition is tolerated, it always has to be subsumed under the concept
of ‘respect / face’ Point to note - gifting to family and close friends is almost a
ritual birthright.
10# Continuing traditions of looking for a fair trade. While there is a generational
and social change, equally something’s never change - like the concept of
hunting for a good bargain. This is largely coloured by the fact that you feel the
other person or organization is always out to get a better deal (unless you are
smart enough!). Not surprisingly, Asian investors tend to use informal
friends/family networks and tend to distrust corporate intermediaries (and the
fees they charge!).
With all this change, what about those dinosaurs that continue to love the feel of
cash in their hands? As Darwin correctly predicted, they are largely en route to
being extinct.
As virtualization takes root, currency now has exciting forms. Airline miles are
seen as currency. Amazon has a parallel e-currency. Online games like Farmville
and Temple Run have their own currency. Why, if you have an empty room in
your home, airbnb sees that as unused currency!
As one progressively gets further removed from hard money, society gets
comfortable with the ‘notional’ (almost transient and ephemeral) idea of ‘e-
money’. In the not-too-distant future, clicks, miles, points and rooms will buy
you everyday groceries.
Every thing is currency and, at the same time, nothing is currency.
It is then that money truly becomes an illusion.
For a conversation on this topic, connect with me at
LinkedIn: hk.linkedin.com/in/submayahai/
Twitter: @sub_maya_hai
Email: sub_maya_hai@yahoo.com