A panel of Wharton faculty and experts in emerging markets private equity recently debated the relative advantage of private equity investment in India vs. China. India has solid underpinnings for economic growth, including a democratic government, a strong education system, widespread knowledge of English and a deep pool of expatriates experienced in Western businesses, according to the panelilsts. Wharton Professor Jeremy Siegel suggested that India’s “soft” attributes, such as a democratic government and a free press that is rooting out corruption, outweigh China’s more impressive investments in “hard” infrastructure such ports, plants, and transportation systems. Siegel is also concerned about China’s system of “guanxi” in which business is conducted more through elaborate networks of relationships than on merit.