PirateP

The Inevitable Collapse of China's Banks

This argument seems largely based on the assumption that China is just like the Soviet Union, hence the reference to Kornai. It's a mistake to make this analogy due to the increasingly market-driven nature of the Chinese economy. Many of the problems from the soviet union came from shortages of fundamental infrastructure, like food production and distribution. Infrastructure seems to becoming less of a problem, not more, for China as its economy grows since the government seems to understand that its growth depends on such infrastructure. Compare China's infrastructure to that of India, a democracy, where almost any analyst can tell you that the infrastructure requires much more investment to continue to produce growth. See economist article.