India's new prime minister, Narendra Modi, seems committed to boosting India's competitiveness by improving its business climate. What his plan lacks, though, is a strong focus on expanding labor-intensive industries.
The competition-fueled growth that propelled China's emergence as the world's second-largest economy is no longer enough. The need now is to rebalance competition to address the negative externalities of state and market activities.
So far, China has largely taken a "Field of Dreams" approach to urbanization: "Build it, and they will come." Now the effectiveness of these investments will depend on how skillfully they are adapted to each locality's distinct resources, needs and aspirations.
The idea that China acted in economically rational ways that merit U.S. study and replication, as suggested by two Chinese economists, is just too much. Asia's biggest economy is merely delaying a debt crisis that will be much bigger and more spectacular than it ...