While looking at the Arts and Letters daily I came across an article that was looking at the growth of authoritarian states as innovative entrepreneurs. The article is a novel attempt to understand what the author sees as an isolated phenomenon but is clearly missing the wood for the trees:
- The author assumed that innovation in entrepreneurship and rapid growth only comes form Dictatorial (or less Democratic countries) - Turkey, Brazil, Argentina and India will be very disappointed to hear these news (and Pakistan might be chuffed). The problem of the article is that it is trying to combine two different subjects: the rapid rates of growth of some countries that are not very democratic but are part of the developing world that is catching up to western levels of development and the growth of sovereign wealth funds.
- As for the rapid growth rates - its is partially a hoax - it is true that China is growing very fast: but it is much an story of "technological Catch up with improved social capabilities" Ala Abramovitz caused partly by the technological changes that allowed the globalisation of manufacturing ala Krugman and due to improved institutional set up ala North. I am not just trying to cram as many eminent economists in a senescence. I am trying to prove that sentences are misinformed.
One striking recent study by the American Enterprise Institute, a conservative
It just so happens that poorer countries are catching up to richer ones who are growing because they are further in the technology tree + the $100 Dollar price tag of oil. So no
· The second big error of the article is about sovereign funds- The article does not even discuss that far from being an article of growth they are an article of control that could even stifle growth for a less developed country such as