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"an inherent trade off between environmental consideration and speed" It's not just environmental consideration. Speed also incentivizes corner cutting, nepotism, and all sorts of corrupt behavior. Evergrande is a great example of speed. Banks in China made the same mistakes that banks in US made in 2008. If banks in China had tight regulations for the last 20 years, real estate growth would be significantly hampered. China should be given credit in that their leaders learned from other countries and leveraged their population size to grow with incredible speed. However, I would argue that China's rise to power has less to do with their efficiency and more to do with laws of growth. If we exclude Covid, I am willing to bet that China will not be able to sustain double digit growth ever again. In fact, I am willing to bet my house that when China achieves US's per capita GDP levels, China will never achieve double digit growth ever again. |
Slowness is surely even better for nepotism and corrupt behaviour.