No Picture

Capitalism: East or West? (7)

As Professor Wang Gungwu of the National University of Singapore observes in Mahbubani (2020), “while the world has had many ancient civilizations, the only ancient civilization to fall down four times and rise again is China. As a civilization, China is remarkably resilient (Mahbubani, 2020).” African countries which see China as a model must bear […] Read Full Story

No Picture

Capitalism: East or West? (6)

That is not to suggest that Chinese capitalism may not yet unravel. Because despite its strong fundamentals, “China has faced and continues to face very serious structural problems (Orlik, 2020).” Still, the system has held up astonishingly well thus far. Why is that? Orlik (2020) identifies four factors at play: (1) “China has underappreciated sources […] Read Full Story

No Picture

Capitalism: East or West? (5)

Chart your course Any form of capitalism can be dimensioned along three lines: politics, production, and profits. The politics determines the rules and ownership of production. How the surplus from production is shared determines the incentives for either efficient or innovative production or both. Efficiency could almost certainly be assured in a totalitarian state. Innovation, […] Read Full Story

No Picture

Capitalism: East or West? (4)

Canada is proof western capitalism needs to have built-in safeguards. Does it surprise anyone that Canada was largely unscathed by the most recent global financial crisis despite its close connections with the United States? It was not just good fortune. Martin (2020) points to certain features in the Canadian financial system to show why. For […] Read Full Story

No Picture

Capitalism: East or West? (3)

Balance matters In his 2020 book, “When more is not better: Overcoming America’s obsession with economic efficiency”, Roger Martin, emeritus professor of strategic management at the University of Toronto’s Rotman School of Management, describes an American capitalism that has become “out of balance”. Americans feel left out from the economy. They do not “feel that […] Read Full Story

No Picture

Capitalism: East or West? (2)

Intelligent learning In his 2020 book, “China: The bubble that never pops”, Bloomberg chief economist, Thomas Orlik, attempts to explain what underpins China’s continued economic success. To be honest, and Orlik (2020) acknowledges as much, China’s resilience continues to surprise many. And even as it braves crisis after crisis, the sceptics believe it is only […] Read Full Story

No Picture

Capitalism: East or West? (1)

We are all capitalists now. Even still communist North Korea has a thriving black market. With so many variants of capitalism these days, it is increasingly hard to say definitively what capitalism is. According to Encyclopaedia Britannica, “Capitalism, also called free market economy or free enterprise economy, is an economic system, dominant in the Western […] Read Full Story