China and India in The Growth of Economy

The developed economies look with admiration and the rapid growth of Asian giants China and India, which depend for their long-term recovery. Economic experts and politicians have discussed the future of the Asian giants in the World Economic Forum in Davos, which concludes tomorrow. In 2020 China will overtake U.S. as world’s largest economy, according to Martin Jacques, who works at the Asia Research Centre at the London School of Economics and author of “When China rules the world.”

For his part, Michael Spencer, an expert on Asia and the Pacific at Deutsche Bank predicts that China will grow by 8 or 9% over the next decade, with inflation at 3 or 3.5 percent. Spencer believes that China will need about 40 years to reach the living standards of the United States and Europe. In this sense, Professor of Economics at Columbia University Xavier Salas-i-Martin said “I doubt that China will be economic leader because they are unable to innovate.”

“China reminds me of what happened to Japan and never materialized, because economic growth is driven by innovation and China back, but has not invented anything. Japan has never had an innovative system like Silicon Valley,” said Salas-i -Martin. He added that “China is still poor and (still) has to grow much and much copied” ·

“I bet on India, a system based on the creativity of the people. Silicon Valley is full of Indians,” said Salas-i-Martin.

China, which has a population of one thousand 334 million people and a per capita income of three thousand 678 U.S. dollars, is currently experiencing a rapid industrialization and urbanization. United States has a population of 307.4 million people and a per capita income of $ 46,381 (both figures in 2009). India has a population of one thousand 200 million people and a per capita income of $ 31 billion. In the coming years China will face a demographic change that will trigger a slowdown in growth in the workforce and will push to maintain a high growth rate, according to the chief China economist at UBS, Wang Tao.

Source: http://www.coffetoday.com