Re: Russia’s economy (was Kvetching, Sarkozy etc.)
On May 9, 2007, at 10:36 AM, Yoshie Furuhashi wrote:
It’s not true that Russia is not investing much — investment has gone up:
Of course it’s gone up. It’s even gone up as share of GDP in recent
years. But that’s the measure that really matters for long-term
growth. And it’s not all that impressive.
You can’t sustain 7% growth rates on that forever.
You can’t sustain 7% growth rates on anything. Even Japan slowed down, and so will China and India in the end.
No kidding. But Japan sustained something like that for 30 years, and
China has for 20. And Japan invested over 30% of GDP in the high-
growth years. That’s how they kept it going for three decades. I
don’t see how Russia can do that with U.S. levels of investment.
Doug