Katare wrote:Chinese currency has risen ~20% since they loosened dollar peg but trade surplus has kept increasing with this appreciation. Lets see how far it goes and when that elusive crash comes. The vultures have been predicting it's around the corner for last 3 decades. After 3 decades of 10-12% sustained growth does a setback/recession/crash would mean anything. Chinese have done it for there economy, infra, human/social indicators. Political and human rights are two areas where they would need to improve for that India should help them by exporting Laluji, Medha Patkar, Arundhati Roy and Mani Shankar Iyer.
Excellent points, Katare san.
Couldn't agree more. Even if a major PRC economic crash happens followed by a Japan style 2-decade slump, they'll still be hajaar better off than us SDREs riding some moral high horse.
In fact, I can't help but notice that there are indeed two major types of economies that industrialised fast - (1) authoritarian in the rapid-growth phase (PRC, SoKo, Imperial Japan) and (2) the Imperial/Colonial powers that weren't authoritarian domestically perhaps but ruthlessly exploited and carted away every drop of economic surplus they could from the colonies decade-after decade for the crucial capital-formation process early on in their industrialization process.
Yindia is stuck only, in a democrazy experiment at a crucial time in its rapid economic growth stage - hampered, hindered and hobbling. Pathetic, really. Sure, one can always argue that democracy can also foster growth - look no further than Gujarat. But even there, growth was fostered by a stable, unwavering, forward-looking hand at the political helm.
I have no doubt that PRC can only go faster and higher and farther, here on. Regardless of what happens in the rest of insolvent deficit countries. And I fear we are set yet again to miss the bus, as we too often have in the past decades.
Yup, Jai ho whatever and all that.