"China's Construction Fetish"
Zhiwu Chen, Yale University | December 1, 2008
China is spending its $586 billion stimulus plan on infrastructure development. ++ However, a steel and concrete stimulus will not provide long-term economic growth. ++ Instead, China should equally distribute ownership rights to the remaining 119,000 state-owned enterprises, valuing around $4 billion, and create a more transparent budget process through public hearings and the media. ++ Long-term growth requires China to move away from an export/foreign-investment based economy to a consumer/domestic-investment based economy.
