Western Economies have to learn from Asian Economies
There is a lot of things that Western Economies – both European and American economies can learn from the Asian economies.
Now if a few Indians were to say that – or Chinese economists were to say that, hmmm the big guys may be offended.
However there is one of ‘them’ saying it…and loudly…nice to read…
http://www.newsweek.com/2010/11/29/western-economies-could-learn-from-the-east.html
Dr Mohammed Ali Khan
I do not agree with him in entirely..
1. He says that the current crisis was caused by free market policies of the American Government.. Nothing is more far from the truth.. The crisis was caused by the American government indirectly forcing the banks to lend to people with no visible means of paying back and then guaranteeing the loans by quasi government agencies like Fannie Mae..
It was government intervention in the banking and the housing sector that was the root cause of this crisis..
2. Look at the solutions that he offers.. More Tax.. Tax everybody more.. Not a word of reigning in the wasteful spending of western ( and all ) governments.. The deficits are NOT caused by less tax.. But rather by excessive spending..
pravin
ah yes. scratch the “pragmatist” surface and you get a dirigiste central planner inside.he is blaming deregulation for the financial shock forgetting that it is the govt/central bank that created the money and moral hazards (LTCM comes to mind) in the go -go years of the 90s.no use blaming the speed limits on the roads when you spread an oilslick on it.
amartya sen is bloviating when he says that the invisible hand is reliant on the govt’s visible hand.thats because the visible hand keeps stangulating the invisible hand.
its no surprise that most academicians love central planning.they imagine that the govt will consult the intelligent fellows at the university (they often do) while doing the planning
also,no “economy” can learn from another economy.economies are not aggregate entities.they are made of of billions of individuals acting . what he wanted to say probably was that the effect of cronyism in the west showed up on wall st and the housing sector.in india it shows up in poor roads,dirty air,malnutrition and other different ways.anyone want to bet that the microfinance game is nothing but subprime?
i meam,we advise middle class people to avoid 25% loans if they can.while MFIs are all 35%loans .as if poor people can generate 36% returns consistently.if it were true,they would all be fabulously rich by now