· An article that is worth a read is “Broken China” by Pete Engardio that appeared in today’s ET.
· All of you know by now my admiration for the communist giant
· Some of the problems in the Chinese model are:
o A glaring administrative failure. A bureaucratic system that seems almost impervious to reform.
o A political structure that gives party officials down to even the smallest villages, huge influence over many facets of economic life.
o An ‘unstable, unbalanced, uncoordinated and unsustainable’ economy, as told by its own Premier Wen Jiabao.
o An over reliance on exports, weak domestic consumption, and a primitive financial system.
· But some of these very problems have some inherent strengths in them:
o It has given
o The political structure ensures that projects which take a typical four years in the presumably efficient West, get completed in less than a year in
· To read this article you can use the e-paper of The Economic Times. Follow this link and choose page 5. You need to be registered to read these articles. Registration is free.