Xu Xiaonian Speaks ‘Sense on Cents’
Posted by Larry Doyle on January 24, 2013 9:04 AM |
Who would have thought that we would or should need to navigate to The People’s Republic of China to gain a basic understanding of how to grow our economy but let’s do just that and meet Xu Xiaonian of the China Europe International Business School.
What is the CEIBS vision?
To become the most respected international business school by linking East and West in teaching, research, and business practice and by promoting China’s social and economic development through high-impact knowledge creation and dissemination.
What pearls of economic wisdom, or dare I say ‘sense on cents’ does Professor Xiaonian have to share?
At the World Economic Forum in Davos, he made a pronouncement perhaps in regard to The People’s Republic but clearly applicable to the USA and other nations as well. Anybody who cares about economic growth should embrace his statement:
“The state sector needs to shrink. In the last few years, the state sector has been expanding. This is the opposite of the direction we need to go. We know [state-owned-enterprises] are low-efficiency. When resources move from the high-efficiency private sector to the low-efficiency state sector, the economy declines. So if you talk about reform, the state sector needs to continue to be shrunk.”
Xu Xiaonian, Professor of Economics and Finance, China Europe International Business School (CEIBS)
So simple yet so true. Perhaps we may think about enrolling a fair number of our political friends in Washington for Professor Xu’s class. I would imagine with the power of the internet those in Washington and elsewhere around the country might be able to enroll online and take the class as a simple pass/fail.
I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.