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The global economic power balance in 2030
Developed countries have experienced almost continuous economic growth over the past few decades. This was rudely broken by the financial crisis of 2008. It was the first severe recession in the developed world since the US loans and savings crisis and it clearly marked the shift in global economic balance. Western nations had accumulated massive public and in case of the US also private debt. Furthermore, developed countries have also been the primary motor of the world’s economic growth until the early 90’s. Until the late eighties, the growth was focused in the developed economies. In the nineties, however, this focus was swayed to the developing countries. The world in 2030 will be starkly different from todays with the worlds’ poorer countries contributing a larger percentage of the total global GDP. This essay will explore whether Chinas developing economies will continue to outpace developed economies over the coming two decades. Americas
After World War II, the United States was virtually the only country left standing and it accounted for 40 percent of world trade in the post-war years, according to Miller. Most countries pegged their currencies to the dollar. English came to be the dominant language of global politics and business and American culture grew globally pervasive. Asia
A study La Sierra University School of Business projected that China may dominate the international economy and become the top superpower by 2040. They also note that India’s economy will be close on China's heels. While the U.S. population is 305 million people, China's is 1.3 billion, and India's is 1.1 billion. The study also notes that these emerging superpowers, through the sheer size of their populations and coupled with increasing access to education and technology, may become contenders for international dominance even before reaching the income per capita levels of the developed nations of today. China
China has changed the world economic landscape in technology and low-cost manufacturing. Taking China's low-cost manufacturing and focus on technology, then combine this with the increasing emphasis on research and development, the result ultimately will not leave much room for other countries to compete with. In 2010, China overtook Japan to become the world's second-largest economy. It has set a target of 8 percent for GDP growth for this year. The country is also aiming to record average annual GDP growth of 7 percent in each of the next five years. When talking about the next two decades role of China cannot be ignored. China is and likely will be the fastest growing major economy well into the next decade. However, forecasting beyond the next decade involves large degree of uncertainty. On the one hand China has large potential and number of strengths. Then on the other hand there are issues largely ignored by the contemporary media. China’s growth has been phenomenal. It went from largely agrarian Maoist society into industrial nation in mere 30 years. It has been able to attract massive FDI and is even able to invest overseas itself. Challenges
One of the reasons why China has been able to grow so fast is that role of environmental protection has been nonexistent. Environmental impact studies of heavy industry or dams has been not done or results have been simply ignored. As a result China is in the brink of an environmental disaster. All of its major rivers are polluted, almost all urban areas suffer from heavy smog and large areas suffer from acid rain. Environmental devastation is especially problematic in rural areas where peasants have violently clashed with local authorities over environmental issues. Although there is an inverse relationship...