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China's Economic Tension
- China's economic model reveals a core tension between a market economy and a Leninist political system.
- Recent actions suggest a sense of panic within the Chinese government.
Suharto and Crony Capitalism
- During the Asian financial crisis, the IMF forced Suharto to close banks owned by his children, aiming to end crony capitalism.
- A Chinese entrepreneur interpreted this as Suharto's weakness, highlighting the uncertainty surrounding property rights.
Growth and Incentive Schemes
- Rapid growth facilitates effective incentive schemes as future prospects outweigh immediate gains, masking potential issues.
- A slowdown can expose underlying problems, potentially leading to economic collapse, as seen in Italy post-1992.