Thursday, July 12, 2007

Red China the Emerging Dragon and Hot India the Dark Horse

Special International View
Let's Start the Revolution of the Filipino Youth XVII

Two of the largest emerging economies in the world today are the People's Republic of China, and Republic of India. Chinas has been for the last ten years growing at a remarkably high speed with Shanghai now becoming the world's center of attraction. All major corporations worldwide are looking at the Mainland China market with wide open eyes. It is wide open eyes because of its big market and I mean BIG market, with a population of roughly a billion people, China is set to become the biggest consumer of goods worldwide. Industries are booming and the banks are getting bigger by the day too.

China's neighbor, India is as hot as China. With a population of roughly 900 million people, India is another big consumer market as well. Major technology, software and pharmaceutical companies are already thriving in India, home to the world's engineers and mathematicians. India's main advantage is its education system - a legacy of the British, which makes the country at par with others in the world in producing quality graduates in engineering, mathematics, physics, and other fields who are proficient in the English language.

In the next ten years, these two economies accounting for a third of the world's population will create the new generation of middle class families, millionaires and even billionaires. With larger populations than the United States, and the European Union combined, the pontential for growth is phenomenal. During the next half century, we will be seeing a shift in the global economy where all the major markets are in Asia: China & India's billion people markets, ASEAN's half a billion, Japan's technology-driven economy with close to 150 million people, and the still oil-rich Middle East with a large population as well.

Along with this is the shift of the balance of power. China and India will become the two biggest economies and the two richest countries in the world. China today is emerging as the Red Dragon it once was and India because of its speed may even overtake China and become the dark horse in this race. The United States is now seriously contemplating this future scenario and that is why we have the War in Iraq. Whoever controls the oil in the next half century will have the upperhand in this global game of politics.

The Philippines now has to carefully study this changing of the Guards. We must now invest resources, time and efforts with the Chinese and the Indians. As early as now we must build great relationships with them. Only by considering these changes now can we hope to become a force to be reckoned with in the future.

No comments: