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March 21, 2011
Authoritarian economy does not pay off in the end
Watching the semblance of success of the Chinese economy, some people allege that an authoritarian system can develop well against the conventional wisdom.
These people should take into account that the Chinese success is ephemeral. China has been growing mainly by transferring wealth from the United States (I mean their gigantic trade surplus). After the financial crisis they artificially boosted economy by massive spending and lending, and so far lack in DNA for autonomous development.
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