Wednesday, October 26, 2011

China's Approach To Developing Its Freshwater Industry

This article describes China's approach to industrial policy. China has a shortage of freshwater and it also realizes that other nations have a similar problem. Consequently, it builds state of the art desalination plants by partnering with external technology partners. After acquiring the best technology, manufacturing know how, and economies of scale, it will enter into the export business

This could not work in the US. In the first place our politicians would rather criticize industrial policy rather than praise it. In the second place, a huge lobbying machine has been funded and organized to represent the interests of those with legacy approaches to providing energy and freshwater. These approaches are usually less expensive, and this acts as a barrier to entry for those with new technologies.

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