Since the financial crash of 2008, major Western governments, including the US, the UK, Germany, France etc. have all been very slow to invest heavily in public infrastructure. Well scoped public infrastructure projects have a multiplier effect on the economy. Sadly, in Europe, especially Southern Europe, German financial orthodoxy has prevailed, with the Fiscal Constraint throttling growth, in an attempt to justify the structural weakness of the Euro. By comparison, China is not constrained, with a powerful central government, ready to invest in infrastructure on an unprecedented scale.
By comparison, the IMF and Western central bankers play a cautious game – they are not yet ready to face up to the strategic challenge from China.