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The underlying big effect is that countries that are industrializing can grow economically at about 10% per year by copying the advanced countries. When they ca
by Animats 2y ago
The underlying big effect is that countries that are industrializing can grow economically at about 10% per year by copying the advanced countries. When they catch up, growth drops to about where their new peers are, because the fast catch-up phase is done. Happened to all the "Asian tigers" - Japan, Taiwan, Korea, Singapore. Now it's happening to China. Normal part of progress. Good summary in "How Asia Works", by Studwell.
Everybody has a property overbuilding crisis. "Build it and they will come" seems to be a universal for developers. What matters is how they come back from it. Japan took about three decades. The US took about three years.