Choose India over China, says Ferguson
Renowned academic and economic historian, Niall Ferguson, believes Western investors are far better off investing in India than China, in terms of market sustainability and social structure stability.
He pointed to core differences between the two countries that could see Western investors benefit more in the long run.
“The Indian system is more open, in the sense that you have real laws, real courts and real property rights,” said Ferguson.
“It isn't perfect, but you could sue an Indian company and have some hope of a fair outcome,” he said.
The Harvard-based expert added that although China was expected to grow for another couple of decades, it had a problem with the misallocation of resources, which would present problems in the future.
Ferguson also said the Indian economy had a more solid long-term base — domestic middle-class consumption — than the Chinese economy.
“Finally, it doesn’t hurt that more of them speak good English,” he said.
Niall Ferguson is a professor of history at Harvard University and professor at Harvard Business School. He is the author of The Ascent of Money: A Financial History of the World.
He presented yesterday at brillient’s inaugural PortfolioConstruction Academy in Sydney.
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