For many developing countries economic growth is an elusive quest. Both economists and policy-makers have long known that issues such as education, investment and infrastructure are necessary ingredients for development and yet only a very small number of countries seem to be able to come up with the right mix of these ingredients. Bryan Ritchie demonstrates how political relationships among government, business, academic and labor leaders create different incentives for economic actors to make key decisions to promote economic upgrading and sustainable development. He reveals how these decisions affect matters such as bureaucratic structures, the language of education, a focus on technology and innovation, and the inclusion of labor in business strategy. These shape the institutional structures that in turn create the foundation of government policy. The policies, and the political relationships that form around them, can be beneficial or detrimental to the economic development of the country. This insightful study shows how the level of systemic vulnerability, which is a combination of resource endowments, domestic conflict and external military security, determines which forms they take. Systemic Vulnerability and Sustainable Economic Growth will be warmly welcomed by academics and researchers of political science, economics – development economics particularly – and Asian studies. Policy-makers will find invaluable insights such as how government bodies can successfully incorporate actors from the private sector. The book will also appeal to business leaders wishing to know why policy-makers act the way they do.