4 ms·

xi is in every row in every risks column of every investment ledger from SF to mumbai.

• alephnerd 2y ago
  Not exactly. It's an issue of misaligned incentives - the Standing Committee sets some high level KPI, and every functionary tries to hit that KPI. This leads to a tragedy of the commons, which is further exacerbated by how devolved China has become since the 1970s, because now individual provinces are heavily invested in companies directly competing with each other, but cannot downscale or shut them down because laying off thousands of employees at SoEs is politically untenable. Everything from overproduction to over-compliance of COVID Zero policies to BRI can be attributed to misaligned incentives between top level policymakers, mid-level decisionmakers, and businesses.