Richard Koo: China Has Passed Lewis Turning Point

Richard Koo of Nomura  trying to answer the question of why structural reforms are needed now in China, a good starting point is the fact that China has recently passed what economists call the Lewis turning point. Also see China GDP to Dip Below 7 Percent Amid Pain Of Liberalization: SocGen Richard Koo: Lewis turning point The Lewis turning point refers to the point in time when, as part of the process of industrialization and economic development, the excess labor in rural villages is fully absorbed by urban factories. From the perspective of a capitalist (business owner), a country in which the Lewis turning point…