Amid signs that there is a slowdown in the world economies, Mme Lagarde of the IMF gave a clear call as to what needs to be done to avert a further slowdown : "Implementation, implementation, implementation". This was during her visit to Beijing. China is on the path to a soft landing, but unless world demand picks up, it fears a mildly hard one. Hence the benchmark lending rate of the Bank of China was reduced by 31 basis points to 6 percent recently. Most people are optimistic of a growth in GDP at an annualied 7 to 7.5 percent, a soft landing forecast. Domestic demand in China is increasing, although there are glitches in property market which are being ironed out to create a sustainable supply-demand price and policy led equation.
Mme Lagarde's words will become legend, and as they are used in policy-making decisions, to adopt the most practial solutions, then in all probability the worldwide economic Recovery shall continue. Where the State issues money at a favourable rate, to a willing population in a country that has resources, work gets created and people enjoy working and earning their living and moving up a rung every year. Worthy aspirations which good governance endeavours to deliver to the people of its nation. The government of Premier Hu Jintao continues to explore and deploy resources to the betterment of all their people, in the avowed aspiration of a common prosperity for all.
Modern China is an admirable example of a mixed economy, where there are State enterprises ensuring work for the majority of people (an enlightened brotherhood command economy created under the guidance of their enlightened leader the great Chairman Mao) plus freedom for entrepreneurs, some of whom rank amongst the richest in the world, with a taste for luxury and capacity and ambition for continued enterprise.
A mix of a command-and-laisse faire economy seems a guiding principle which would work in most countries, in an atmosphere of happy co-operation and enterprise and development. The progress of China over the last forty years is an inspiration.