On CCTV's Dialogue Yang Rui interviewed David Dollar from the Brookings Institution.
They discussed how China's "strong central leadership could make all the difference to growth rates" boosting them to 8% pa rather than the expected 4% pa.
However a sophisticated economy cannot grow without an educated and innovative workforce. An educated and innovative workforce will need to have a critical outlook (all innovation comes from criticism). A critical class of people will eventually criticise they way they are governed and controlled - this is inevitable.
Therefore China's economy already contains a paradox - growth is not possible with a critical outlook, and a critical outlook must eventually mean on-going governmental reform and democracy.
The discussion referred to the need for internationalisation of the RMB exchange rate regime - liberalise interest rates; open up financial services to competition; open up the capital account.
As we are living in a globalised world distance is no longer a constraint.
Therefore perhaps the United Kingdom should leave the EU economic area and join the China economic area. It would make a lot of sense given how complementary the two economies are (unlike the EU where all the economies are competing). China has reserves of 4 trillion dollars.
They discussed how China's "strong central leadership could make all the difference to growth rates" boosting them to 8% pa rather than the expected 4% pa.
However a sophisticated economy cannot grow without an educated and innovative workforce. An educated and innovative workforce will need to have a critical outlook (all innovation comes from criticism). A critical class of people will eventually criticise they way they are governed and controlled - this is inevitable.
Therefore China's economy already contains a paradox - growth is not possible with a critical outlook, and a critical outlook must eventually mean on-going governmental reform and democracy.
The discussion referred to the need for internationalisation of the RMB exchange rate regime - liberalise interest rates; open up financial services to competition; open up the capital account.
As we are living in a globalised world distance is no longer a constraint.
Therefore perhaps the United Kingdom should leave the EU economic area and join the China economic area. It would make a lot of sense given how complementary the two economies are (unlike the EU where all the economies are competing). China has reserves of 4 trillion dollars.
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