Furry Brown Dog

Dedicated to the memory of my canine friend…

FT: Asia needs to re-invent its growth model

leave a comment »

The Financial Times has an op-ed today on how the financial crisis and the global downturn has demonstrated the flaws of Asia’s largely export-reliant and neo-mercantilist economic growth model.  In short it argues that the artificial suppression of Asian consumers at the expense of ramping up exports and production to increase net exports relied on the expectations of irresponsible credit card holders in America and the West to continue their profligate spending.  So when these consumers cut back, Asian exporters similarly cut back their production, leading to a fall in their countries respective GDPs.

Very insightful read.


Written by defennder

May 20, 2009 at 10:26 PM

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: