[lbo-talk] Iran Studies China Model to Craft Economic Map

dredmond at efn.org dredmond at efn.org
Fri May 18 16:37:55 PDT 2007


On Fri, May 18, 2007 9:44 am, Yoshie Furuhashi wrote:


> But aside from the mode of transition, the Chinese model
> cannot be imported into Russia, for the same reason that it cannot be
> imported into Iran: as Djavad Salehi-Isfahani says, the Chinese model
> "'doesn't apply because Iran is not a low-wage economy.

Only part of the initial stage of the Chinese boom (1979-1995 or so) can be explained by low-wage manufacturing, outsourcing from Hong Kong and Taiwan and the like. Since 2000, China's economy has been driven by high rates of investment, powerful state-industrial networks, rigorous control of exchange markets and foreign trade, rising real wages, and state control of the financial sector.

-- DRR



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