http://www.globaldashboard.org/2009/03/18/china%e2%80%99s-65-economy-prospects-risks-trade-offs/ Global risks and how to respond to them, edited by Alex Evans and David Steven Sat, 11 Feb 2012 13:49:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.globaldashboard.org/2009/03/18/china%e2%80%99s-65-economy-prospects-risks-trade-offs/comment-page-1/#comment-9046 Kak Fri, 20 Mar 2009 10:56:36 +0000 http://www.globaldashboard.org/2009/03/18/china%e2%80%99s-65-economy-prospects-risks-trade-offs/#comment-9046 I think the policy makers in China should read this following comment from Leo as a warning: "The fiscal stimulus and financial easing measures are sizeable and speedily administered, but far too much of the money is pouring in to sectors already plagued by overcapacity. Around half of the stimulus package will be spent on infrastructure investment, compared to just 1% on social spending and 9% on the environment. This kind of short term boost is unlikely to do much to increase consumer spending in the medium term. A similar story can be told of the massive injections of credit"... What I also heard as that the inland provinces are enjoying the growth of double digits without knowing the meaning of the word " crisis". Maybe those parts of the country wil help make 8% with some hope. I think the policy makers in China should read this following comment from Leo as a warning:
“The fiscal stimulus and financial easing measures are sizeable and speedily administered, but far too much of the money is pouring in to sectors already plagued by overcapacity. Around half of the stimulus package will be spent on infrastructure investment, compared to just 1% on social spending and 9% on the environment. This kind of short term boost is unlikely to do much to increase consumer spending in the medium term. A similar story can be told of the massive injections of credit”… What I also heard as that the inland provinces are enjoying the growth of double digits without knowing the meaning of the word ” crisis”. Maybe those parts of the country wil help make 8% with some hope.

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