A Chinese Century? Maybe It’s the Next One – Lester Thurow

From New York Times:

China claims that its economy is growing at 10 to 11 percent a year, and China’s official analysts say that their nation will catch up with the United States long before the 22nd century arrives. Don’t believe it.

First, let’s deal with the implausibility of the official Chinese statistics. Mathematically, if the overall economy were to grow 10 percent annually, and the 70 percent of the economy that is based in rural areas were not growing (as stated by the Chinese government), the economy in China’s cities would have to be growing by 33 percent a year. The urban economy is growing rapidly, but not at a 33 percent pace. [Full Text]

Lester Thurow is a professor of management and economics at the Massachusetts Institute of Technology.

August 18, 2007 7:43 PM
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Categories: Economy