I watch this video the other day, did not really think too much about the contents, other than that one point that was very intriguing that Mr. Gave made about the oil price and gold price at the end.
Now think I should post it, because it was not a bad talk. He went over the basics. This was not like his usual talks, as this time the interviewer was just some 21 year old kid. He was Duke student in the United States, apparently Mr. Gave was an alumni so this interview was granted.
It is one hour long, but it still went over the most important points of recent years for the China economic story.
One point in the video, that I do not agree with, is that Mr. Gave points out that the situation is that with India making up with China, potentially there is the world's lowest cost producer of raw materials in Russia, then the largest advanced factory in the world which is China, and the largest country with the cheapest labour which is India. Put those three together, and we can have a boom of epic proportions.
That I do not really expect.
To make a long story short, the question really is how to utilize that cheap labour? Does that means India exports labour as workers to other countries? That would be no, because if they come to Canada, the Indian-foreign worker is paid a Canada wage, so that labour is no longer cheap. Therefore, the idea that India has the cheapest labour between those three countries, means the capital and factories have to appear in India and that the cheap raw materials will arrive from Russia.
So really we just back to the same Indian story as before in their development economics. To utilize that cheap labour, going to need conditions conductive for business. That the Indian government must provide before anything goes forward.
Of course, some people probably already thinking, automation in China and with cheap raw materials from Russia, could be a real boom in the making!
