Contagion Libya

Image via WikipediaAs of today Eastern and some of the West coast of Libya appears to have freed themselves from the vice grip of Qaddafi’s regime. This situation highlights the problem of the economics of class and hierarchy. When an economy is structured to create a gap between the ‘haves’ and the ‘have nots’ it is, by its own nature, unstable. When that gap is allowed to widen, the situation becomes a powder keg needing only a spark to ignite it.

China Eyes Egypt

This week's Economist has an excellent article on China's response to the events in Egypt.  There is no doubt that China will have some critical choices to make in the next couple of years.  Given the changes in the country since Tiananmen Square, it is difficult to imagine that less social and political liberty will be a viable option.  The question remains whether or not the Politburo will manage to shift its priority from pure economic growth to a more balanced agenda.  There is no doubt that establishing a strong economic base is critical to having an orderly transition to social and political freedoms, but where is the tipping point? At what point will the marginal returns to economic growth no longer contain the rising impulse for freedom?

http://www.economist.com/node/18178177