An anatomy of Asian economic woes | Troubled tigers | The Economist

An anatomy of Asian economic woes Troubled tigers The Economist: "So if Asia is to shift the mix of growth towards consumption, the usual prescription of urging households to spend more will not be enough. A raft of government policies will have to change to lift households’ share of national income. They include: reducing the bias towards capital-intensive manufacturing; speeding up financial liberalisation to lift the cost of capital; scrapping subsidies and tax breaks which favour manufacturing over services; and attacking monopolies and other barriers to services. Stronger exchange rates would also shift growth away from exports and boost households’ real spending power by reducing the cost of imports in local currency terms."