Merryn Dambisa given their population on wages Weve seen very significant even double digit growth numbers which are very important in very impoverished economies Weve seen them actually roll out in ID: 877361
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1 are more substantive, structural factors
are more substantive, structural factors, longer term factors that I think are also quite important. So, if you look back over the past 50 years, the
2 lens that I think is really important,
lens that I think is really important, not just in terms of where we are today, but more importantly, where we will be in the future, is the structu
3 ral lens, and there are three factors th
ral lens, and there are three factors that drive structural decisions, structural growth paths, shall we say. One of them is capital, so how much mon
4 ey you have. The second one is labour, b
ey you have. The second one is labour, both the quality and quantity of labour that you have, of course. And the third one is productivity, which, as
5 you know, we tend to really undervalue,
you know, we tend to really undervalue, but in reality it explains 60% of why one country grows and another one doesnÕt. The reason I wrote the seco
6 nd book, and the subtitle is 50 Years of
nd book, and the subtitle is 50 Years of Folly Merryn: Dambisa: given their population, on wages. WeÕve seen very significant, even double digit
7 growth numbers, which are very important
growth numbers, which are very important in very impoverished economies. WeÕve seen them actually roll out infrastructure. WeÕve seen them move hundr
8 eds of millions of people out of poverty
eds of millions of people out of poverty in a very short period of time. There are lots of things to admire and like about that. Of course, itÕs not
9 without its challenges, but, you know, i
without its challenges, but, you know, if you look at their political system, and IÕve been very lucky; IÕve had the opportunity, as part of a group,
10 to spend an hour with the Chinese Presi
to spend an hour with the Chinese President about a year ago, and I think the way that he expressed concern for the currency of the global economy w
11 as, in a way, much more are clearly dyn
as, in a way, much more are clearly dynamics that need to be factored in. I just thought there was much more nuanced and much more thoughtful, the w
12 ay this is going. Merryn: Interesting. S
ay this is going. Merryn: Interesting. So you donÕt have anyÉ very big worries that some people have about the Chinese economy? Dambisa: No. Well, le
13 t me put it this way. Am I worried about
t me put it this way. Am I worried about the housing sector, non-performing loans? Yes, I am. I mean, I think we donÕt really know what that number i
14 s and therefore it causes a bit of lack
s and therefore it causes a bit of lack of clarity. People over-egg the fact that China is a market economy. ItÕs not Am I worried about pollution in
15 the environment? Absolutely. Slow growt
the environment? Absolutely. Slow growth in, you know, as you know, you need to grow by at least 7% per year in order to Dambisa: Well, what can I
16 say? I mean, I guess the one thing, one
say? I mean, I guess the one thing, one lens that I think has probably been underplayed vis--vis Greece in particular, is I think what weÕre seeing
17 here is not a transition but more of a n
here is not a transition but more of a new equilibrium. What do I mean? I mean that the Greek situation, to me, has all the hallmarks of the aid syst