Thursday, April 13, 2006
I am not an econ wonk, but . . .
This article, entitled Development in defiance of the Washington consensus looks noteworthy. It begins:
Communism 2.0?
China has carried off the world's largest reduction in poverty by grasping that market economies cannot be left on autopilot
Joseph Stiglitz
Thursday April 13, 2006
The Guardian
China is about to adopt its 11th five-year plan, setting the stage for the continuation of probably the most remarkable economic transformation in history, while improving the wellbeing of almost a quarter of the world's population. Never before has the world seen such sustained growth; never before has there been so much poverty reduction.
Communism 2.0?
Technorati Tags: China, Competition, Poverty, Sustainability
Comments:
More like Mercantilism (Colbert-style) 2.0.
It's interesting how Communist Party cadres are ranked on an incentive system that is purely based on how GDP in their zone of control fared (they are now adding environmental metrics to the equation). Very similar to the way a Fortune 500 works, actually, with very little room for ideological posturing.
In this respect, it taps in the ancient Chinese tradition of the Mandarinate, and owes very little to Marx et al.
It's interesting how Communist Party cadres are ranked on an incentive system that is purely based on how GDP in their zone of control fared (they are now adding environmental metrics to the equation). Very similar to the way a Fortune 500 works, actually, with very little room for ideological posturing.
In this respect, it taps in the ancient Chinese tradition of the Mandarinate, and owes very little to Marx et al.
My older brother, the stockbroker, always says, "genius is a rising market." It is amazing how China does seem to be doing nearly everything right on the economic front, but I still think it is too early to be issuing any final verdicts.
China Law
China Law
The chinese did so badly during the previous century, that anything short of a total screw-up would look fantastic. The tag quote "that a market economy cannot be left on autopilot" is ridiculously naive. Market economies are controlled by experts each in his own business. An economy controlled by politicians has at its help those people who are best, not a making money, but at taking money.
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