Dani Rodrik — Back to Fundamentals in Emerging Markets

Useful post. I would take issue with the following assertion, however, which seems to be based more on ideology than fact.

China’s economic achievements are undeniable. But it remains an authoritarian country where the Communist Party retains its political monopoly. So the challenges of political and institutional transformation are immeasurably greater than in India. The uncertainty that confronts a long-term investor in China is correspondingly higher.

It's myopic. China has been so successful because of its centralized control and strategic planning. India remains mired in the past owing to the condition of its bureaucratic and dynastic political system, which, although democratic, is lumbering, cumbersome, and corrupt. China has a clear advantage here, and foreign investment in China shows that sophisticated investors realize it.

Project Syndicate
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Dani Rodrik | Professor of International Political Economy at Harvard University’s John F. Kennedy School of Government