2014-09-12economist.com

``There are also fears that rapid catch-up might have meant shallow catch-up of a sort that could never be sustained. The factors that made industrial capacity easy to build did not encourage the development of the physical infrastructure and the capacity for things like design and marketing which, when they grow up alongside manufacturing, help to anchor it in the broader economy. China and some other emerging markets used the heady catch-up years to develop underlying technological and managerial capabilities and invest in infrastructure. Others made less progress.'' -- Indeed we have observed around here that labor arbitrage can only provide so much growth; the real question is can the developed world (the "BRICS axis"), hitherto more command-based than the West, create the next wave of growth based on reformed market fundamentals...



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