Tuesday, September 29, 2009
China & India, "Two Economic Monsters"
Both countries have somehow found a way to improve their economic situation across the years. But, how have they done this?...
We can say China's Economic improvement started after 1978, after World War II was over. Before this, China's average growth per year was of roughly 6 percent a year. After 1978, it's average growth was of about 9 percent. There were also several years that it reached 13 percent of average growth.
Even today their economy is still on the rise. Though, today, China's impressive GDP growth might face a few threats, such as: Undervalued Currency, Nonperforming Bank Loans, Inefficient state-owned prices, and growing income disparities.But still, there is another fact, development, both economical and social in China go hand to hand; what used to be the lower classes can now we considered middle class. The countries' infrastructure has been improved as well, and there is a chance that China could stop being just a "very large industry" that supplies treats all over the world.This issue has created a worldwide doubt... Will China become a threat to the world? Especially, for its major rival, The United States.
"Per capita income has nearly quadrupled in the last 15 years, and a few analysts are even predicting that the Chinese economy will be larger than that of the United States in about 20 years". Say Zuliu Hu & Mohsin S. Khan in their article "Why is China Growing so Fast"
For more information visit this link: [http://www.imf.org/EXTERNAL/PUBS/FT/ISSUES8/INDEX.HTM]
China and India are countries recognized by all the world. Their economic growth has been really fast in the last century. Both countries have developed their economic situation using infrastructure, low labor and high trading range to raise their position in comparison with other power countries. Indiaprincipally started to trade with high industry products, not only with products of rawmaterial.This is how their numbers have increased since 1980.
To know more about the way India's economy has being managed visit: [http://www.indianchild.com/india_economy_growth.htm] and
- Globalisation, a current issue.
How positive can Globalisation be? What are it's negative aspects?
In one hand, globalisation has really opened doors to new cultures in different countries. It is easy now to see anItalianin Mexico, a French in Tokyo or a Mexican in Los Angeles (haha).
Trading opportunities has also being encouraged by this matter. Countries are now basing its economy a little bit more in trading than they used to.
Also the appearance of new technologies thanks to globalisation, although most of the time you read in tags "Made in China", "Made in Japan", "Made in Taiwan" etcetera. But still, it has become a positive aspect in countries development.
But Globalisation is still not a fairytale. The mixing of cultures is slowly "destroying" them. This new technologies, well, if you've seen the film "I Robot", you might think about it twice before having a robot doing your chores.
Another issue of globalisation is the fact that countries have become more and more dependent to each other; and this, in the long run, could become worse.
