A Chinese proverb tells us that it is wise to learn from your own mistakes but wiser to learn from the mistakes of others. Asian leaders should take this advice to heart as they juggle between policies for social welfare and economic dynamism. By keeping a keen eye on Europe's fiscal crises, they can avoid the worst of the Continent's productivity-reducing excess.

At the same time, it would be a mistake for Asia to look to Europe solely for lessons on which policies to avoid. Europe could not have attained the highest quality of life in human history without doing some things right