Main Players Multinationals, Not Countries
Economist Andy Xie says western stimulus won't help.
BY Caroline Cakebread | July 26, 2010
China expert and economist Andy Xie writes that more stimulus in the west isn’t going to stop Asian economies from powering ahead on the global stage. Writing in the Financial Times, Xie makes an important point amidst all the policy bluster: “the main players in today’s globalisation aren’t countries, but multinational companies.” Of course, they operate without borders. Xie makes a compelling argument – and he even argues that multinationals will drive western stock markets to “decouple” from their economies in the next 10 years.
Of course, globalisation is not a lose-lose proposition for the west. Its multinational companies will make far more than in the past. It is possible that western stock markets will decouple from their economies in the decade ahead, and fare well. This would be a big boon for the western societies that are struggling with the cost of ageing.