International -- Readers Report
Can Anyone Justify Tiananmen Square?
I am a regular reader of Robert J. Barro. But "China's slow yet steady march to reform" (Economic Viewpoint Sept. 30) sounds criminal. The mass murder committed in 1989 by the Chinese authorities that saddened people across the globe could hardly be justified for reasons of a nonactivist macroeconomic policy. How would a justification of the horrendous events of September 11, for any reason, sound to Professor Barro?
Yes, the Russian economic transition swayed because of the activist approach. But the activist economic policy that busted Russia was clearly a prescription of Wall Street and Washington, not Russians. Under Boris Yeltsin, the non-activist macroeconomic policy prescribed by Russians was rejected outright, and brute force used to impose the activist approach favored by Wall Street and Washington--now condemned by Barro.
Professor Barro opined that "liberation in trade...be extended to include closer connections with the international financial system." Very candidly, it will benefit Chinese more to continue to shield their financial market than opening it up to speculative capital attack, which the international financial systems involve.
The East Asian crisis, the Russian crisis, and currently the wreck of Argentina are all examples of the damages caused by a hurried linkage to the international financial systems and its flood of speculative capital.
Deebii Nwiabo
Gentofte, Denmark
Professor Barro's view that the handling of Tiananmen Square in 1989 by the Chinese government to achieve political and economic stability in China is not popular or may be reprehensible to many editors of newspapers in the U.S. However, it has been recognized by most Chinese that the tragic treatment was necessary if imminent chaos in China was to be avoided and steady economic growth was to be achieved.
The difficulty in maintaining the momentum of reform arises from both the resistance of hardliners and those who want to gain power by taking advantage of the freedom suddenly given to them. It looks as if hardliners in China have been under control since Deng Xiaoping ascended to power, but those who intend to grab power by creating chaos, such as Falun Gong, will continue to emerge during the reform process.
Professor Barro's view will certainly clarify some misunderstanding of China's current economic and political reform process.
Chao-Hwa J. Chang
Redlands, Calif.
Robert J. Barro wrote that China's "per capita GDP of $700 in 1960 (in 1995 U.S. dollars on a purchasing-power basis) [rose] to the middle-income level of $4,300 in 2001." While technically not a case of apples and oranges, a comparison of per-capita gross domestic product with the middle-income level is certainly misleading.
If we multiply per capita GDP by population, using Professor Barro's middle-income level, that would come out to $5.6 trillion. Yet according to most estimates, China has a GDP of slightly over $1 trillion (or somewhat less in 1995 dollars).
Barro's GDP figure of $700 for 1960 (in 1995 dollars) is certainly much too high. If China's per capita GDP today is perhaps $900 (in 1995 dollars), then it would have been $225 in 1960.
Steve Slavin
Brooklyn
Editor's note: The writer is author of Economics, a principles textbook published by The McGraw-Hill Companies.
Michelin's Run-Flat Tire: Not First on the Block
I read "Michelin" (Cover Story, Sept. 30) with interest, particularly the reference to the PAX as the "industry's first `run-flat' tire." When I was with Dunlop Tire Corp. in 1973, they introduced "Denovo," a run-flat tire similar to the one you describe.
Among its advantages: need for a spare (leaving more room in the trunk for other items) and reassurance for women driving alone after dark. It was sold as an optional alternative for Mini Coopers and Jaguar XJ6 cars.
John S. Gammon
London
The Victims of South Korea's Success
So--LG Electronics has become the darling of Korea, exporting goods to the world to the tune of $6.2 billion ("White-hot white goods," Asian Business, Sept. 30).
I suppose the 10,000 or so employees who helped make all this possible will feel elated about being sacked for their efforts as all their jobs get exported, as it says in the article, to China.
Merv Nash
Victoria, Australia
Jordan Is Rooting for George W. Bush
Jordanian dependence on Iraqi oil and a depressed economy can be reversed by Saddam Hussein's defeat ("Why Jordan is terrified of a U.S attack on Iraq," (International Outlook, Sept. 23). The Hashemite resumption of influence in a post-Hussein Iraq will unleash greater oil production (and dissemination) and a booming economy, which will solve the unemployment problem, the refugee problem (Iraqi and Palestinian), and the excessive poverty that prevails in both countries. This will relieve tremendous pressure on domestic Jordanian politics and instability.
Deposing Saddam Hussein will shift the balance of power in the Arab world away from the secular (Syria, Egypt) and religious (Iran) radicals to those with a pro-Western orientation (Turkey, Jordan, Iraq, Israel, Qatar, Bahrain, etc.), improving the prospects for liberalization and democratization. Jordan's rulers will risk more, not less, in such an environment, which will encourage the moderate Palestinians to come forward to make peace with Israel.
The outcome may be continued friction between the authoritarian/theocratic elements and the democratizing public demands (the current situation), but the burden of sustainability will have shifted. For the first time an opening may ensue for both modernizing and stabilizing the long-term Middle East.
Bernard Schechterman
Boynton Beach, Fla.
Editor's note: The writer is professor emeritus of international relations and Middle East studies at the University of Miami.
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