During most of the 20th century Asia has asked itself "what can we learn from the modern, innovating West?" Now it seems that positions have to be reversed. What can the West's overly indebted and sluggish economies learn from a vibrant and flourishing Asia?
Only a few decades ago, Asia's two giants practiced strict Marxism in China, and Nehruvian Socialism in India, but once China began following "Free-market" reforms in the 1980s, and India in the 1990s, both countries achieved rapid growth. Crucially, as they opened their markets, both countries balanced capitalism with government direction- "the invisible hand of the market, has often relied heavily on the visible hand of the government", was the mantra.
In contrast, the US and Europe have both gone overboard with following their ideologies, and have both helped the current global financial crisis. The US, with her ideology of "unfettered free markets, and dismissive of government role/control, has left the Economy in auto-pilot way too long...the truth is that "the market does not always know what is best", and Europe has fallen into the trap of believing that Governments would always have infinite resources...just continue borrowing as if there were no tomorrow. Both nations need to learn how to intelligently raise taxes and at the same time cut expenditures- a challenge Asian countries faced with their past crises.
Why are you telling this?
I'm hoping for a Mad Max scenario.
Because he's so confident in its veracity that he feels he needs to spread the word.
...well, after coming across this topic in my research, I thought it profound enough to stimulate debate and discussion. Of course, the decisions our leaders choose to adapt in the West will have a great impact on all our futures.
...for those who read the material, but thought it a waste of time...you need not comment...
"oinquarki", I quess you are correct. I do believe that "market forces" alone will solve the problems we are currently faced with...and while I am not endorsing the amount of control used by these Asian Governments (especially China), I think there are lessons and footprints there that will help us manage our own Economies better.