Why India is in good shape for the future

Dan Pepper passed on this article in Newsweek highlighting the underlying strength of India's economy.

"Be nice to countries that lend you money"

Great perspective on America from the banker who runs the $200 billion China Investment Corporation in The Atlantic. He loves us, but thinks our perspectives on the world are totally wacked. In the interview, he gives a pretty unvarnished perspective on the financial crisis (a fundamental change), derivatives ("bullshit... crap... they serve to cheat people"), American pragmatism (the best part of our culture) and -- most importantly -- China's attitude towards it's U.S. dollar reserves ("We’d love to support you guys—if it’s sustainable").

But the comment that struck me the most was what he had to say about Wall Street compensation and salary disparities in China and the U.S..

"When I graduated from Duke [in 1986], as a first-year lawyer, I got $60,000. I thought it was astronomical! I was making somewhere a bit more than $80,000 when I came back to China in 1988. And that first month’s salary I got in China, on a little slip of paper, was 59 yuan [$8.63]. A few dollars! With a few yuan deducted for my rent and my water bill. I laughed when I saw it: 59 yuan! The thing is, we are working as hard as, if not harder than, those people. And we’re not stupid. Today those people fresh out of law school would get $130,000, or $150,000. It doesn’t sound right."

As someone who's worked in China and India, that hits home. People in these countries ARE pretty smart and they're working damn hard. But because of the historical differences in economic development between our country and theirs, they get paid a tiny fraction for doing the same work.

He's right: it doesn't sound right. And it probably won't last.