Chinese give PM Kevin Rudd lesson on neoliberalism
Rowan Callick, Asia-Pacific editor | June 19, 2009
Article from: The Australian KEVIN Rudd has been accused by a leading Chinese economist of being "either short of economic knowledge or misleading his readers" in his famous essay attacking neoliberalism.
In a scathing assessment, Xu Xaonian, economics professor at China Europe International Business School in Shanghai, lambasts the essay, now translated and published in China, as "shallow and crude".
Dr Xu says "Lu Kewen" - Mr Rudd's Chinese name - made a "big, big mistake" in forming his "confident opinions" based on "the observation that the crisis came as a result of neoliberalism and the absence of supervision".
Dr Xu, one of China's leading liberal economists, has savaged the Rudd essay in the weekly Chinese newspaper The Economic Observer after the Prime Minister's work was translated and reprinted in China's leading business magazine, Caijing.
Dr Xu, who has a doctorate from the University of California and was formerly managing director of the country's biggest investment bank, says it is not time to resurrect Keynesianism, as Mr Rudd proposes.
"Instead, it's time to announce Keynesianism's failure, time to announce the emperor Lord Keynes has no clothes."
He says the Prime Minister "has used electioneering-style tactics to brand neoliberalism as dogmatic, to paint a clownish portrait of it, seeking to pioneer popular antipathy to this artificial enemy, casting a moral verdict without seeming to care about truth or logic".
Dr Xu says: "Lu Kewen defined Alan Greenspan as a neoliberal, and claiming that his failure and that of the neoliberals is a failure of the market.
"Lu is either short of economic knowledge or is misleading his readers. Greenspan is a Keynesian, and a thoroughgoing one, not a neoliberal. Lu smartly transformed a failure of government into a failure of the market - a form of propaganda by him and his social democrat comrades which now looks as if it is working."
Dr Xu says that Mr Rudd "views himself as an heir of Franklin Roosevelt and Keynes - he wants to use expansionary financial policies to pull the economy out of recession".
"Instead, it will only add a fresh failure to the Keynesian list, while piling up votes, in the meantime, for the social democrats," he says. "Although filled with conclusions contrary to facts and unfounded policy prescriptions, it represents a popular post-downturn trend, especially because it comes from a country's prime minister."
