The unforeseen
presence of the Dragon Country China and the Elephant
Country India on global
economic scene has especially
become a matter of concern
to the United States and Europe. After Chairman Mao’s death in 1977 the Chinese
economy took rapid strides growing at a globally unprecedented rate of about
ten percent a year and entered the global
economic field. From 10% of its GDP
in 1978 China’s
exports and imports went up to 30% and rose to 50% on 202. Today, China is the largest exporter next to the US and Germany. By exporting bulk to the
US China virtually took over its consumer marker. American manufacture was
adversely affected and the US
became indebted to China,
whose global economic upstart began to lend support to the mighty America. In
this scenario, India
made its
presence felt globally through its Information Technology (IT)
Services. And soon American business concerns found it profitable to outsource,
which was seen as a threat by its labour. In this book David Smith tries to
find out what is going to happen to these two countries, to the economic powers
of the West and to the entire global economy. David smith devotes the earlier
chapters of his book to take a look at the past and the present so that the
future can be given a good perspective. He traces the economic history of the
two countries, dwells on the ancient days of their glory and subsequent decline
and the divergent paths they took since 1950. Though smith does not provide
with a definitive answer as regards to the future, he identifies the major
factors which, in time, would provide required answers. He deals with the
future possibilities and expresses confidence that the world would absorb the
new entrants and benefit from their presence.