Making money in China was hard at the start of the millennium. It took more than two months to start a company in 2003, compared with two days in Australia. When the World Bank published its inaugural annual ranking of the the easiest countries in which to do business, China was number 91.
How many investors and companies stayed away from what is now the world’s second-biggest economy because it had too many rules and regulations? China’s gross domestic product increased by the equivalent of about $8-trillion (U.S.) between 2004 and 2014, according to the International Monetary Fund. Those who stuck it out put themselves in position to be rewarded handsomely. Those who shied away now are acquainting themselves with the latest previously obscure economic theory to enter the mainstream in North America and Europe: secular stagnation.
The meek have been handed a second chance at global fortune. India could be on the verge of reproducing a reasonable facsimile of the economic boom Beijing orchestrated through the 1990s and 2000s. “India is like China was 10-12 years ago,” said KS Raghuram, the Shanghai-educated founder of an Indian startup called FOSEngage, which has developed a mobile application for facilitating communication between big enterprises and their suppliers. “The basic building blocks are in place. We are on a steady growth track for 20-25 years.”
Continue reading (paywall)...