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Failed states are great for the Chinese economy

Tuesday, 06 July 2010 09:19 Last Updated on Tuesday, 06 July 2010 09:19 Written by Eric Garland 10 Comments

Go to your newsstand and pick up a copy of Foreign Policy magazine’s July/August 201o issue entitled “The Committee to Destroy the World.” It’s a fascinating, broad analysis of all those countries who don’t play by the rules set out by industrial powerhouses – and why they don’t. If you sweat about the failure of American pension funds, Icelandic treasury bills, or German austerity, then cast also an eye toward North Korea, Zimbabwe and Iran for contrast.

One particular item of interest – failed states aren’t all bad, according to the magazine. They make for cheap and pliable partners for China when it comes to natural resources. We reported on this trend back in 2007 with our STEEP Report series, how China’s massive investment in infrastructure requires a broad range of partners, most of whom then become warmer to the rest of the Middle Kingdom’s strategic goals.

Click on the image for a map of China’s investments in natural resources.

Tags:  China, failed states, natural resources
This entry was posted on Tuesday, July 6th, 2010 at 9:19 am and is filed under Economics, infrastructure, National Security, Natural resources. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
  • http://twitter.com/RupyYuan Rupy Yuan

    The most interesting thing about the China Effect is how China is winning these global constituencies over with its longer term intent.

    [$M.]

  • http://twitter.com/RupyYuan Rupy Yuan

    Also love Stefan Halpers phrase “China is a capitalist dynamo”, this isn't a “Cold War” it's Zero-K on the Kelvin Scale.

    [$M.]

  • http://blog.competitivefutures.com/ ericgarland

    Interesting – yes, it's so cold as to be unnoticed by most. Unfortunately, its the US Government that appears to not be on the list of those aware. Some government policy makers told me, “Most of our leaders our playing checkers, while the Chinese are playing chess and thinking four moves out.” Sounds about right, given what we're seeing.

  • http://twitter.com/RupyYuan Rupy Yuan

    I think it starts with all of us not just the US government, if that is we have an inside-out rather than outside-in worldview (it is both views that inform each other).

    [$M.]

  • http://twitter.com/RupyYuan Rupy Yuan

    Maybe Chinese capitalists are 4 steps ahead because they are “Clint Eastwood”, the Republicans and Democrats are today's Rojos and Baxters.

    [$M.]

  • http://twitter.com/RupyYuan Rupy Yuan

    My conclusion is that the Chinese government is an example of what special interest would be if it ever became a one party dictatorship.

    [$M.]

  • http://blog.competitivefutures.com/ ericgarland

    That's a great analysis of how special interest works, and puts a major connection between the U.S. and China, given that we think of our systems as so different.

  • http://twitter.com/Ovurmind Viktor Ovurmind

    I try not to treat viewpoint, analysis or observation as a material thing i.e. something that should be measured twice and cut once, but as a process of refinement until a point of satisfying purity is reached or at least to the point of diminishing return. I do realize the importance of reputation for it is not wise to refine a damaging or a dumb point of view. I thoroughly enjoyed my contributions here and I wish you the best as you both move forward with your strategic practice.

    [v.o.M.]

  • http://blog.competitivefutures.com/ ericgarland

    Man, you're really digging into the philosophical side of strategic analysis – constant refinement of perception, reputation versus egolessness, etc! I think this is definitely the advanced course for the professional analyst, a train of thought all too rarely visited.

    I remember Socrates who said, “I'm the most famous man in Athens because I'm the only person who understands how little he really knows.” We should all have that kind of self-understanding.

  • http://twitter.com/Ovurmind Viktor Ovurmind

    Thanks for that informative view. I utilize the Internet for that same exact purpose as the Socrates quote you elicit. I find it fascinating that the word “emergency” means emergence and nothing can emerge if I hold onto a fixed point of view. Sometimes language blocks this self-understanding, then I can try something else http://www.youtube.com/watch?v=gsHBq3Xo44c which ensures a state of mind that remains fresh to welcome learning.

    [v.o.M.]

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This is the official trend blog of Competitive Futures, a management consultancy that provides trend research and analysis for business and government around the world. Here, we update you on interesting trends we see as part of our work for our clients.


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