The State Owned Economy in Economic Recession
for State Asset Corporation of the Central Committee of the Communist Party at Beijing
17 August 2009
Speaking to a Conference of Party members, Richard Scase outlined some of the factors contributing to the global financial melt-down. He discussed how the high savings ratio of consumers in China allowed these surpluses to be invested in Western financial institutions, enabling them to extend cheap credit to Western sub-prime borrowers. The subsequent defaulting had created the present banking crisis and the credit crunch.
National states are now intervening in their economies to a greater extent
than since the post-war era. This is requiring the creation of new regulatory bodies such that there is a now a 'convergence' between many
economic management tools in the West and in China. He concluded his speech by stating that if the 19th century belonged to the UK and the 20th to the United States, the 21st would belong to China!