The biggest developing nations risk overturning the achievements of the past decade by increasing the state’s role in the economy, according to Nouriel Roubini, reports Bloomberg.
Roubini said Brazil, Russia, India and China have been moving away from market economies recently.
“BRICs have been hyped up too much,” Roubini said in an interview today at the World Economic Forum’s annual meeting in Davos, Switzerland. “Too much state role in enterprises, banks, resource nationalization, protectionism, lack of structural market-oriented reforms that increase the size of the private sector -- this is happening in most of the BRICs.”
This is the first time I have seen Roubini comment on the BRICs this way. It has been, however, a common theme in the EPJ Daily Alert, especially regarding China. And in this week's Robert Wenzel Show, economist Richard Ebeling, just back from a trip to China, warns of a looming economic crash there, because of the extensive government interference.
BRICs "moving away" from free markets? No surprise there. None of them cared two hoots for freedom of any sort. I don't know much about B, but the RICs have a socialist/communist history, and opened up a little bit more each time there was a threat of complete collapse.
ReplyDeleteThis was last year's plea by Carlyle Group co-founder David Rubenstein:
ReplyDeletehttp://peureport.blogspot.com/2012/01/davos-global-tamperers-twist-words-for.html
I wonder what Roubini thinks is happening in America concerning moving away from free markets.
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