Artículos con la etiqueta ‘Friedrich List’

A new world order and China’s key role

Por • 2 nov, 2013 • Category: Economía

Friedrich List, in his National System of Political Economy (1841), asserted that political economy as espoused in England at that time, far from being a valid science universally, was merely British national opinion, suited only to English historical conditions. List’s institutional school of economics asserted that the doctrine of free trade was devised to keep England rich and powerful at the expense of its trading partners and that it had to be fought with protective tariffs and other devices of economic nationalism by the weaker countries. List’s economic nationalism influenced Asian leaders, including Sun Yat-sen of China, who proposed industrial policies financed with sovereign credit. List was also the influence behind the Meiji Reform Movement of 1868 in Japan. Alexander Hamilton, by proposing the US Treasury using tax revenue to assume and pay off all public debts incurred by the Confederation in his 1791 Report on Public Debt, through the establishment of a national bank, provided the new nation with sovereign credit in the form of paper money for development. China, as the largest economy in the Asia-Pacific region, and potentially the largest in the world, has a key role to play in shaping this new world economic order. To do that, China must look beyond its current myopic effort to join a collapsing global export market economy and provide a model of national development in which foreign trade is reassigned to its proper place in the economy from its current all-consuming priority. The first step in that direction is for China to free itself from dollar hegemony and embark on a domestic development program with sovereign credit.