The myth of Asia’s miracle. By:Paul Krugman Commented by: This article in my opinion touches on one of the most important political and economic happenings in this decade, and the coming decade. The whole world is watching Asia with primary Europe and the United states as they are investing majorly. Ofcourse the second reason is the political and safety side. With China investing majorly in their army and the last celebration of China with the large military parade the world is shivering on what China could do.
To get more deeply into the article I think the main picture Kruger is sketching has a lot of sense. Because I am historically not so well educated it was a whole new perspective shown to me. I think as many academic people have said ‘that to predict the future you have to know the past’. So it does make a lot of sense to compare the future of China for example to the former SU which had the same opportunities. Although we have to make some side notes I think.
Firstly at the moment the SU went into major economic growth the globalization was not at the same pace as it is nowadays. Also the source of information for example the internet has a major impact on how China is changing. They are inviting international companies to work in their country and then copy the way of working so that they can produce it themselves. At the moment the SU was getting growths they had to do it by them self because their was still a lack of understanding between the western world and the SU.
Of course u can say know that Singapore had the same opportunities as China has concerning the globalization. But as the article shows which I think is true Singapore does not have the same bargaining strength as China does. Because China hosts the largest market in the world, which means that every company would like to have every Chinese person buy only one of its products. This market share gives them a huge edge over Singapore. Secondly the accounting at which the articles shows has a lot of reason.
I also recognise that this way of reasoning is true, but the if look at all the provinces in the China who are still majorly underdeveloped they still have a huge future expectancy on their growth rate. It does take a lot of work to get them involved with today’s society but in the end it always worked that if a area is evolving people are migrating to the better parts to earn a salary. To make a final conclusion about this article, I think it has gave me a new inside into the overall economic world and I would not find it strange thing if kruger is going to be right in 10 to 20 years.