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Conference Reports |
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John Talbott
John Talbott, Indian School of Business explored the reasons why India need not emulate the Chinese model lock-in-step. The primary focus of his analysis was that China's advantage arises from its low wages, which are currently not market determined. This model for growth is not feasible for replication by other liberal economies around the world, including India because any economy that supports freedom of expression for workers cannot sustain such low wages.
The top-down style of enforcing economic reforms that China has adopted cannot continue because as the populace increases, pressures for increasing freedom of expression and labour dissent in the form of trade unions will have to be put on place. And when that happens, the low wage structure that China is currently using will no longer be sustainable.
John Talbott also expressed the need for greater transparency in the Chinese economy. Parameters of economic growth and performance like the level of unemployment, inflation and non-performing loans are being significantly understated by China. For instance, some sources estimate that 99% of China's State-Owned Enterprises (SOE) overstated their profits and performance.
John Talbott is a former investment banker for Goldman Sachs in New York and Visiting Scholar at UCLA's Anderson School of Management and Professor (Government, Society & Business), Indian School of Business.
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