Q&A: The Architecture of Asia - INET Panel (7 of 7)

The panel discussion covers economic policies in India and China, emphasizing the need for market forces and avoiding past policy mistakes. Audience questions highlight the shift of global savings to Asia and its implications. The entrepreneurial spirit in rural China is discussed, focusing on local market strategies. The panel analyzes currency value and crony capitalism, noting the resistance to change in China. Policy implications and economic strategies are debated, with a focus on service sector development and employment. The session concludes with a call for global coordination and improved governance structures.

What is the consensus among the panel regarding India's economic policies?

• India should return to pre-1991 policies.

• India should focus solely on domestic markets.

• India should avoid returning to pre-1991 policies.

• India should adopt China's economic model.

What is a key concern regarding the speed of China's economic rebalancing?

• There is disagreement on the appropriate speed.

• It is too slow for domestic needs.

• It is too fast for the global market.

• It is not necessary for China's growth.

How might Asia's growing savings impact global regulatory reforms?

• They have no impact on global reforms.

• They make global reforms more relevant.

• They render some global reforms less relevant.

• They require stricter global regulations.

What shift is occurring in China's entrepreneurial strategy?

• From domestic to export markets.

• From export-led to domestic market focus.

• From manufacturing to agriculture.

• From technology to traditional industries.

What benefit did the undervaluation of the Chinese currency provide?

• Decreased government power.

• Higher inflation rates.

• Protection from the financial crisis.

• Increased domestic consumption.

What is a major challenge in changing China's currency policy?

• Insufficient economic data.

• Resistance from those in power.

• International pressure.

• Lack of government interest.

What is a suggested solution for China's high savings rate?

• Focus on export markets.

• Reduce service sector growth.

• Develop financial institutions for SME lending.

• Increase state-owned enterprise investments.

Why is global coordination in economic policies important according to the panel?

• To reduce international trade.

• To ensure harmonized global growth.

• To address issues in isolation.

• To isolate national economies.

What role does China play in shaping global economic rules?

• China is increasingly influential.

• China follows without input.

• China has no influence.

• China opposes global rules.

What is a potential benefit of improving financial institutions in China?

• Increased reliance on state-owned enterprises.

• Enhanced SME lending and service sector growth.

• Decreased domestic savings.

• Reduced global economic influence.