BBC Business Daily : Comparing Chinese/SEA Economies With India’s
Thursday, May 7, 2009
Business Daily program today. The Goldman Sachs’ analyst sounds absoultely crazy with his way-over-the-top optimism on China. David Roche, though, is a star. His views, on the role of democracy and free markets in building long term growth, are spot-on.
Mr. Roche explains why Asian countries (excluding India) have a huge uphill climb ahead in creating a true consumer-led economy. “I think Asia will get relatively richer…..One of the challenges is that it is no accident that all the rich countries of the world are also democracies…..No Asian economy really has developed the institutions – democratic or otherwise – to achieve that purpose…..I exclude India which is a different type of economy, in some ways more Anglo-Saxon, more service oriented…..Export, manufacturing oriented economies have to show that they are capable of creating the middle-class, consumer-driven society which can actually give them sustainable growth which is created at home. To do that politically, you have to tolerate the middles classes, their individualism, their claims to property rights, their claim to independent judiciary and their claim ultimately to a democratic system. That is one hell of a challenge for countries which claim they have found an Asian way by doing the opposite…..