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Much ado about nothing!

Is East the new West?

Written By: WGC - Jan• 16•11

The year 2010 was the beginning of a decade which was markedly different from the previous.  The millennium began with a lot of apprehension about what  “2000” would mean for computers and related systems. There was  a prediction of widespread pandemonium with some alarmists even predicting the end of existence….They could not have been more wrong!

However, the world changed like never before and the pace faster than ever before. In just a decade China has moved from being a  relative lightweight to being without doubt the next  world superpower.  Since it signed on to the WTO,the “ worlds warehouse” has galloped to being the world`s second largest economy. It is only a matter of time till it overtakes the US.

The 2007 Global Financial crisis certainly helped its cause as it left the West weaker than ever. Talks of the Yuan replacing the US dollar as the global reserve currency are becoming louder, something which would have been inconceivable a few years back. Economic strength brings clout and soon China will be calling all the shots.

China despite its huge population, is still not as a huge a consumer as the US for instance. This will take a while. Cultural factors and governance are possible reasons, but the time will come when it becomes not only a large producer but also a large consumer. Affluence increases with prosperity and the Chinese will buy more discretionary goods.

With the Indian economy also growing rapidly, the end of this decade could even be more different.  There is no doubt that the US will emerge from this slump, but the question is whether it will ever enjoy past prosperity, with the worlds landscape vastly different and still changing!

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One Comment

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