Everyone is talking about the incredible economic miracle taking place in Asia. It is true that the continent has made huge strides. But while millions more people move up into the middle classes, huge swaths of its population are being left behind. To realise their full economic potential, Asian nations must free public utilities from the clutches of the governments that control them – often simply for political or ideological reasons.
The quality of basic services you have access to in Asia is like a lottery. But a person’s access to world-class water, electricity, transport and internet services should not be dependent on where they happen to live. There are still too many instances of countries only providing electricity for certain hours in the day.
Everyone looks to China and says – “wow, you see a lot of new high-rise buildings”. But has China solved its water problem? Has it solved its long-term transport problems? The Chinese operate their public services at a loss and the government subsidises the massive shortfalls. That might work now but how long before it becomes too big a burden, one the country can no longer afford? The current system is simply not sustainable. Shorter-term investors have the same fascination with India. But, again, without vital infrastructure and utilities competitively priced, India’s growth is not sustainable.