Friday, February 22, 2013

How the World Works, Redux

. Friday, February 22, 2013

Michael Pettis has written "A brief history of the Chinese growth model" which reads quite a lot like James Fallows classic 1993 essay on Japan's growth model, "How the World Works". Pettis hits many of the same notes: it isn't new, it was advocated for by Alexander Hamilton in the US and Friedrich List in Japan Germany; it is focused on enhancing national capabilities as much as improving the actual standards of living of citizens; to that end it prioritizes investment and exports over consumption and imports. There are other similarities as well.

Anyway, I know that Fallows' essay gets assigned in undergrad IPE classes a lot. This could be an interesting/useful update or companion piece.

In other (related?) news, here's a right-up-to-date essay on the economic situation in China from Caixin (sort of a Financial Times of China). It's not very optimistic; the title is "Waiting for a Crisis".

FWIW, Fallows' article on Japan appeared about a year before that country's financial crisis in 1994.


How the World Works, Redux




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