Published: 15 July 2017
Author: John Ross
(Senior Fellow Chongyang Institute for Financial Studies, Renmin University of China, Beijing)
We reprint below an important new article by a leading Marxist economist based in China.
The world’s two most rapidly growing major economies are China and India. Both China and India show a common pattern of development which differs sharply from the slowly growing Western economies. China and India’s fast expanding economies have rapidly growing state investment even while their private investment is either growing very slowly or declining. In contrast the slowly growing Western economies rely on private investment with no rapid growth of state investment. It will be shown below why rapid expansion of state investment is correlated with fast economic growth, while reliance on private investment leads to slow economic growth.