Wednesday, September 29, 2010

Can China Move Into the Exclusive Club of High Per Capita Income Countries?

The 1992 Nobel economics laureate Gary Becker -- professor of economics at the University of Chicago and senior fellow at the Hoover Institution -- writes a magnificent opinion piece for The Wall Street Journal, "China's Next Leap Forward."

Quick insightful snippet here:
Global markets allow poor countries to grow rapidly for a while, but it is far more difficult to grow beyond middle-income levels. Much has been made of the fact that a month ago China's aggregate GDP surpassed that of Japan. But all that means is China's per capita income is about 10% of Japan's, since China's population is about 10 times that of Japan. Despite its great economic advances, China still has a long way to go to become a rich country.
Don't overlook it. Blog is equally fascinating.

Posted by: The Global Small Business Blog


Small Business said...

Perhaps in the next few decades it might happen. China will find away one step at a time.

Nick Carter said...

If they continue to lead in high-tech manufacturing, possibly. The growth of big business usually also leads to more small business via outsource, vendor contracts, etc. It might also become the case that China's income level doesn't increase, but other leading nations decrease, putting China in the lead.

Ttalor072 said...

International marketplaces allow inadequate nations to develop quickly for a while, but it is far more challenging to develop beyond middle-income stages.Perhaps in the next few years it might occur. Chinese suppliers will see away one phase at the same time. Fire retardant gear Halifax