November 12, 2009
Business Insider has a video up on a city in China that has been built, but there is little activity. This really underscores a lot of what is happening in China right now. They are growing at a brisk pace, but an increasingly large amount of the growth stems from real estate. Since the government owns the land, proposals are made to the government for essentially what are projects and business ideas. The government provides land, funding, etc. to get these ideas off the ground. This is great in that it provides entrepreneurial lift to the economy, but it also is leading the government to tackle many projects, etc. which really are simply designed to enrich. Since the punishment is severe in China for bribery, etc., this is essentially one legal way of getting ahead.
Anyhow, watch the video. It’s pretty interesting.
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