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| Author: | Daniel Lynch |
|---|
October 1, 2009
FEER's Daniel Lynch assesses the reality of the Chinese government's expectations for economic recovery, and indicates the possibility of political upheaval in the near future.
Today marks the 60th anniversary of the People's Republic of China. There will be massive military parades and many speeches by the leaders of the Communist Party. But no one will mention the very real possibility of political upheaval in the near future, or the economic inequality, job losses and slowdown in economic growth the country is currently experiencing.
Imagine that U.S. gross domestic product is growing at an annual rate of 4% when suddenly it drops to 2% because important trading partners are hit by a severe recession. An alarmed president pushes through Congress a $2 trillion fiscal stimulus package, while a frantic Federal Reserve dramatically expands credit and increases the money supply by a whopping 25%. Would a decline in the growth rate from 4% to 2% justify such extreme policy measures?
Most economists would say "no way" because heavy stimulation of a generally healthy economy could lead to an inflationary doomsday. Yet the Chinese Communist Party has implemented an equivalent level of stimulation in combating what it insists is a very mild economic downturn. Something isn't right with this Chinese picture.
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Start-Up Nation addresses the trillion-dollar question: How is it that Israel—a country of 7.1 million, only sixty years old, surrounded by enemies— produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada, and the UK? With the insights of geopolitical experts and investors, the authors examine this nation’s adversity-driven culture to answer this question and offer prescriptions for a global economy on the rebound.
In Forces of Fortune, Vali Nasr presents a paradigm-changing revelation that will transform the understanding of the Muslim world at large. He reveals that there is a vital but unseen rising force in the Islamic world—a new business-minded middle class—that is building a vibrant new Muslim world economy and that holds the key to winning the cold war against Iran and extremists.
In Cuba: What Everyone Needs to Know, Julia E. Sweig presents a remarkably accessible portrait of Cuba's unique place on the world stage over the past fifty years, including its internal politics, its often fraught relationship with the United States, and its shifting relationship with the global community.
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