Can We learn From China?

John Feffer,  in a very cogent way, has detailed what makes China's economic engine work. He also raises some questions, for us to ponder about, if the nature of our governance is getting in the way of evolution of sound economic policies?  Here is the summation of the article.  

Chinese government made shrewd investment choices from the 1980s onward.  The often heavy hand of the government was able to redirect resources in a more targeted way than the invisible hand of the market.  First Beijing announced massive investment in higher education.  Even more dramatic was China's great leap forward in technology.  In 2001, because of its dependence on dirty coal and imported oil, China decided to focus on renewable energy.  The country had virtually had no solar industry in 2003; five years later, it was manufacturing more solar cells than any other country.  CHINA's SUCCESS ISN't BECAUSE IT BECAME 'more like us' IN ADOPTING LIBERAL MARKET REFORMS. RATHER, CHINA's TRANSFORMATION IS A WAKE-UP CALL THAT WE ALL HAVE TO BECOME MORE LIKE THEM.

Today, the world economy is in a tailspin.  The additional challenge is the global environmental crisis. We cannot grow our way out of this problem. Ultimately, it doesn't matter whether China or the US has a larger economy in 2025. What matters is whether the world's largest economies will together usher in a new economic model that would rely on the great lever of the state to shift resources toward energy efficiency and sustainability. That must be the Obama administration's long-term goal as well. As long as 'government' remains a dirty word in the United States, forget about any transformation. We'll just be stuck with business. As usual.

source:  by John Feffer, Co-director of Foreign Policy In Focu