Why Are Governments Paralyzed?
By Michael Spence, William R. Berkley Professor in Economics & Business and David Brady
The deeper problem is a breakdown in precisely such values and goals – that is, a weakening of social cohesion.
Meanwhile, among the major emerging economies, China’s reform process is on hold, pending a leadership transition this fall that will clarify various internal interests’ goals and power relationships. India, which has lost reform momentum, is experiencing an economic slowdown and a potential loss of investor confidence.
CommentsThe negative effects of these problems are now interacting, feeding back on themselves, and spreading to the rest of the global economy. And yet, despite a palpable sense of concern that something is very wrong, the prognosis for significant change is bleak – and deteriorating.
Read full piece as published by Project Syndicate.
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