CHINA: BORROWED TIMETHE CHINESE GEOGRAPHY

• North has a wide broad plain which took two millennia of civil wars to consolidate

• Yellow River not navigableo Beijing is the

political/military capital

• Yangtze is the only navigable river in the countryo Shanghai is the

economic capital• South has good

ports and is subtropicalo Greatly retards

northern controlo Encourages foreign

presence

• North: political unification• Yangtze: economic partnership• The Far South: military

occupation• Everywhere: bribes• Private capital pooled into

state’s hands, which funnels it at sub-market rates to achieve national goals

• Maximize employment by maximizing firm size, market share and throughput at the cost of debt, profitability and return on capital

• Allows for endless bidding for inputs, while subsidizing price of outputs

CHINA: BORROWED TIMEGEOPOLITICS MEETS DEVELOPMENT POLICY

CHINA: BORROWED TIMEGEOPOLITICS MEETS FINANCIAL POLICY