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