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To Catch China, India Needs Human and Physical Capital, Says Dr. Roubini

Bloomberg reports on Dr. Nouriel Roubini’s remarks on comparative growth in India and China. Dr. Roubini argues that India needs to invest in human capital and innovation if it wants to match Chinese GDP growth:

March 31 (Bloomberg) — India has a “massive” need for capital to catch China’s growth rate and fully benefit from a global shift in economic power to emerging markets, said Nouriel Roubini, the economist who predicted the financial crisis.

“China has been a hare and India a tortoise but growth is accelerating in India,” Roubini said yesterday. “There is a massive need for both human and physical capital.”

Read the full Bloomberg piece here


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4 Responses to “To Catch China, India Needs Human and Physical Capital, Says Dr. Roubini”

economicminorApril 1st, 2010 at 10:58 pm

Professor, what do you think of the work and writings of Steve Keen?http://www.debtdeflation.com/blogs/2009/09/19/it%E2%80%99s-hard-being-a-bear-part-five-rescued/He makes a lot of sense to me and I was wondering what you thought of his work and conclusions.There are a lot of differences between China and India. The style of government is major. China is moving people off the land so that more modern farming techniques can be used. Plus the dam on the Yansee is displacing millions. China is creating debt out of thin air and India is much more pragmatic about debt creation. China is dependent upon the US and the more developed countries to buy it production much more than India.If Steve Keen is correct and I believe he is, then there is going to be a collapse of over indebtedness in the US, Europe and Australia at least. Probably in Korea, Japan and Taiwan also. This will cause much harm to the Chinese development IMO. Not so much in India.Wish I could read your entire piece. I also miss the old blog and the bloggers as much as some were a pain, others were very insightful with good diversity of thought.Warmest regards

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