A conversation with Branko Milanović on inequality and the future of capitalism



we talk about China the tremendous changes have produced in China what is shocking to me is the speed at which the change has taken place and in some sense it's like a new revolution because again when you look back into the past you'll look at let's suppose the period in Europe between 1500 and 1800 a growth rate was between zero one two zero two percent actually very successful countries at zero two percent then comes the industrial ocean that increases that rate by ten times so basically we are going to two percent growth rate and that was a phenomenal change now what China is doing is that they takes that rate and multiplies it by four and grows by 8 percent per year and this is something which I believe we are all totally kind of shocked and have hard time kind of except adjusting to that inequality in the developed countries is creating a polarization in society and therefore the societies is going to be much more difficult to govern the danger is that Europe becomes a little bit Latin America nice in the sense that there is an upper class and middle class and then there is significant number of people who feel left out and then the political spectrum starts shifting so you might have like like if you look at Brazil I'm not saying that Europe is but if you look at Brazil it's a dramatic shift in political spectrum you have a very left-wing government then you have extreme right-wing government so maybe next time there will be another left-wing government but you know you move very quickly because you have one side or the other side which tends to be more important at a given point in time and I think that's that's the danger you continue very actively you are going to produce another book which appealing title capitalism alone the idea is that capitalism is the only mode of production in the world and of course alone that means that's the only one but alone is a little bit ambiguous because when you're alone you know maybe all of your you don't have a competitor actually so maybe some negative sides also come out more clearly then if you were not alone and obviously for that reason I have to argue and argue that China is a capitalist country I think actually we can see that in any objective indicators you




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