Xie Xie, China

Total exports by Brazilian region in US$ (1995=100)

(HT Batistuta).

Chinese Ghost Cities?

Some say they are dead. Other people say that this is not exactly the case.
All right, I volunteer to fly to China and check it myself . Please, cable the money.

Happy Birthday, prof Coase!

On December 29th, we has turned 100 year old. Amazing. He is still productive and in July his new book will be available: How China Became Capitalist. Here goes a brilliant recent interview . Excerpts:

WN: (...) You have high hopes that the future of economics is in China. What makes you think so?

RC: It is obvious. It is the size of Chinese population. A new idea is always accepted only by a small proportion of the population. But a small proportion of the Chinese is a big number.

(...)

RC: I am now 100 years old. At my stage, life requires a constant effort. As I told you many times, do not get old. (...)

Coase's Theorem and Ricardo's Comparative Advantage are the best single ideas in Economics. Simple, non-trivial and even inteligent people find it hard to grasp. In his twenties, Coase had already proved that he was a genius. The question posed in The Nature of the Firm "Why do firms exist?" opened a whole new research program and has changed economic thought forever. The answer, almost everybody agree, is transaction costs.

More on the chinese ghost town

Built in a breakneck five years, Kangbashi is a state-of-the-art city full of architectural marvels and sculpture gardens. There's just one thing missing: people. The city, built by the government and funded with coal money, its chief industries energy and carmaking, has been mostly vacant for as long as it has been complete, except for the massive municipal headquarters. It's a grand canyon of empty monoliths. In a paradox only possible in today's economic system, Kangbashi manages to be both a boom town and a ghost town at the same time.

Kangbashi represents a particularly destructive economic force at work in China today: an obsession with GDP that ignores all other metrics of progress or human capital.
...
Officials (...) say the population reached 50,000 last year, which seems improbable given that pedestrians on the street were outnumbered by street sweepers.