'China to Replace US as the Engine for World Economy'

In Asia, business and government activity is often blurred. In Japan, Korea, Taiwan, and even mainland China, one can only really say that about 50% of their GDP's derive from the private sector while the rest still derives from the public sector. A 50% ratio isn't bad. European countries also have about a 50% ratio. The US is unique in that it has a 67% ratio of private-vs.-public economic activity. In Taiwan today, much of "democratic" Taiwan's major industries are still government-owned. For example, Taiwan's #1 airline. While it would be desirable if China had a 67% or higher ratio right now, China's only been capitalist for 20 years or so, so 50% now isn't so bad. You can't turn a 100% communist economy into a 100% laissez-faire capitalist economy overnight. Russia actually tried that but "shock therapy" there wasn't particularly effective. You mentioned Poland's Solidarity labor movement, but are you aware that the Polish government is about to re-nationalize the shipyard from which Lech Walesa led that labor movement. After 10 years of being disillusioned with democracy and capitalism, the Polish want to renationalize their industries! Similarly, throughout democratic Latin America today, people are disillusioned with the democratic/capitalistic model and voting into leftist socialists back into power as we speak. Witness Brazil today where socialist Lula got elected by a wide majority. You gave these people the vote, but now they're voting to put the big-government socialists back into power! It's bad bad Latin American countries first adopted democracy about 20 years in the first place. Their GDP growth rates today are only 1/10th what they were in the prior 20 years, when they were led by authoritarian regimes. At the end of the day, the issue is whether the government has improved the quality of the people's lives or not, regarless of the form of the government. Two generations of poor, illiterate Indians have wasted their lives and continue to live in poverty during the past 50 years, while the one-party regimes of E. Asia leaped from Third to First World status in a generation. India is "free" and democratic, but mostly they use this freedom to engage in neverending gridlock in their legislatures with the result that needed economic reforms never see the light of day. Democracy works well in countries that are already rich and have already developed majority-middle class populations, but in majority-poor Third World countries, democracy is a formula for majority-socialist politicians to come to power and block every economic reform imaginable such as privatization because their majority-poor constituents don't want to lose their welfare and jobs in the welfare state anytime soon.

That's a lie. The current political ruling party, the BJP, has now been in power for over 5 years, having recently won re-election last year.

Before that, the Indian National Congress party held power for almost 9 years.

And even before that, the Janata Party held political power for 4 years. Before them, the Indian National Congress held power from 1937 to 1977, almost for forty years.

Let me tell you boy, it doesn't get any more stable than that. Enough of your lies and disinformation. Check out the following link if you don't believe me.

Indian Political History

The current Indian administration has been in power longer than usual, but as I'm sure you know, Vajpayee is weak and once again India's economic reforms are on the backburner. I read Indian newspapers just to read all the self-flagellation that seems to be an Indian pasttime these days about how India is continuing to lag China economically. You know, a lot of Indians have asked themselves why this is the case and they often conclude, like GE's CEO recently did, that India's government just isn't as centralized or consistent as China's in pursuing economic reforms single-mindedly over the long term.

The current Indian administration is also not just the BJP but a coalition of some 20-25 different political parties, of which the BJP is the leading member. Merely to cobble together such a coalition involves many compromises and the end result that even the BJP cannot pursue essential economic reforms like labor and land reform or else its coalition will fall apart. This type of scenario is India's and most other Third World republics' neverending situation. Democracy in both First World and Third World countries often involves gridlock but Third World countries suffer more because it is they that need economic reforms more desperately, whereas First World countries are already rich.

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