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Italy Joins China's New Silk Road Project

(www.bbc.com)
132 points pseudolus | 1 comments | 23 Mar 19 13:13 UTC | HN request time: 0.224s | source
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vicpara ◴[23 Mar 19 15:24 UTC] No.19470826[source]▶
Centralised planning will beat democratised decision making if they indeed manage to respond in time to a changing environment. The advancements in tech and communication allows you today to be more effective than ever. Think about global corporations with offices around the world. They are effectively operating under a centralised model and they do it very well.

What China learnt in the past 4 decades was how to manage the beast, not behead the messenger and have an effective planning anchored in true market signals.

Another point worth mentioning is that the Four Tigers are working with a planning and investment horizon of 30-50 years. Since they don't have to justify every four years about what they've been up to, they can be more effective in chasing bigger investments that have a longer-term ROI such as research, education, strategic industrial branches.

Now how do you compete with that?

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1. outwebbyyou ◴[23 Mar 19 15:40 UTC] No.19470879[source]▶
You don’t need to compete with it. The chinese dictatorship model (like Soviet union before it) will collapse within time. One man decision making and the need to save face means it is incapable of making quick responses to changing environments. State owned model means there are tons of inefficient companies making inefficient investment decisions. Oppression means it will force others against it.

Thus China currently has a 400% debt to gdp, private firms defaulting and failing while state firms hoards and makes inefficient investments, most of the free world economies aligning against China, more than 1/3 of rich people in China wants to/ are in the process of leaving, etc