IMHO the Anglo Disease is directly caused by the toxic combination of compounding debt and private property, particularly in land. The Dutch disease on the other hand was a macro-economic policy mistake, on a grand scale, I think, in that they repatriated most of their surplus and did not adequately neutralise it by investing it in productive domestic assets.
IMHO the Anglo Disease is directly caused by the toxic combination of compounding debt and private property, particularly in land.
The Dutch disease on the other hand was a macro-economic policy mistake, on a grand scale, I think, in that they repatriated most of their surplus and did not adequately neutralise it by investing it in productive domestic assets.
Instead, a lot of the money went to fuelling the property bubble. The brainless should not be in banking. — Willem Buitler
Things may not have looked too bad because government went on a hiring and spending spree on education and healthcare (thus ensuring that jobs were created - in the publc sector, not in the private sector, as the claim of "dynamism" suggests), from its skim of the financial plunder - ensuring that the government is now broke as a large source of income dries up, just at the moment it would be needed to do contra-cyclical policies.
In other words, government hid the plunder by its spending, and is now as naked as the population. In the long run, we're all dead. John Maynard Keynes
In the UK, where the sector's share of GDP rose to 9.4% in 2006, from 5.5% in 2001, City-dominated London received 50% of total foreign investment. Per capita Gross Valued Added rose by between 8% and 9% over the last decade in London while, in all other regions of the UK, it stagnated or fell.
