The perils of centrally planning prosperity in China (Summer School World Tour) : Planet Money : NPR

China’s turbocharged growth may have made it rich, but now it has to deal with rich country problems. 

High-speed trains that connect every town. Gleaming new bridges and skyscrapers. An apartment (or two) for every family. No country on Earth has seen the kind of economic growth that China has over the last 50 years. China has become the factory to the world, a grand experiment in central government planning mixed with personal ambition. 

It was all enabled by what our guide for today calls, an engineering state, a central planning mindset where leaders believe they can engineer their way out of economic problems. And problems are mounting. 

Today on the show, the perils of prosperity and the despair of success as China deals with overbuilding. 

We’ll travel back to China’s free-wheeling boom-era of the early 2000s and hang out with a property developer who amassed his wealth at the center of the action – private jet rides, thousand-dollar fish soup, casual bribes. Then, as the economy slows, we ask what can we learn from the despair of success. Does rising youth unemployment signal a less prosperous future? With young people struggling to find white-collar jobs, some of them are opting out of work altogether. 

Featured Episodes:

Featured Terms: 

• Socialism with Chinese Characteristics
• Engineering State
• Malinvestment

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This episode of Planet Money Summer School is hosted by Robert Smith. It was produced by Sophia Paliza-Carre, fact-checked by Sierra Juarez, and engineered by Maggie Luthar. This episode was edited by Planet Money Executive Producer Alex Goldmark.

Music: NPR Source Audio – “Setting up,” “Almost Anywhere,” “Malibu Sunsets,” “Dust or Smoke,” “This New Year Sham.”