Friday, November 12, 2010
INDIA And CHINA & The Rise Of Asian Economy.
The most common issue today discussed in the global MNC about the emerging markets, particularly in the Asian economy. The epée center of capitalism will come to Asia or in Euro Asia, loosing the prominence of U.S.
Twenty years down the line things in the economic frontiers will change dramatically.
1. Huge Demography both in South Asia and China, and both are young demography.
2. Cheapest Manpower available in the world.
3. Manpower of all kinds, from low category to most efficient and most qualified manpower.
4. Adaptability to go global and global footprints of the Indian and the Chinese are present around the world, and they have been successful in all frontiers be it in business trade commerce to science and technology.
5. Low per capita consumption is one of the major factors to growth of the Asian countries particularly India and China.
6. One of the biggest markets still to be tapped, the global MNC will not find cake walk to enter these markets, they are challenged by local players and they pose tremendous threat to these MNC. All MNC bleed for several years in these markets and then reach break evens, but this is the future market, they can’t leave it too, it has be there in their new market expansion mode.
7. These countries had rich cultural civilization in the past, which according to some these are inherent strength if these country.
8. Both India and China missed the Industrial revolution in the nineteenth century, in one way that has been good for the world.
9. In one conference some body told me if all Indians and Chinese starts consuming the energy like an average American two planets will be required, other wise the whole planet will melt down.
10. Both the countries are spending sizeable amount of their money in defense expenditure and have infrastructure problem , which is very much required to kick start a flying economy.
A very interesting figure I found out which I want to share with you all.
World’s Richest Government
Richest governments after 2008-2009 financial crisis:
1. Peoples Republic of China
National reserves: $2,454,300,000,000
National reserves: $1,019,000,000,000
National reserves: $458,020,000,000
4. Saudi Arabia
National reserves: $395,467,000,000
National reserves: $362,380,000,000
National reserves: $279,422,000,000
7. South Korea
National reserves: $274,220,000,000
National reserves: $262,000,000,000
9. Hong Kong, China
National reserves: $256,000,000,000
Out of the top nine countries only Swiss Government is not in Asia.
The rest are all in Asia.
Another very interesting fact "The USA" might have the biggest economy, but the American government is not at all rich; in fact, it can't even take out $150bn if asked to now without resorting to borrowing.
To date the US government has borrowed $14 trillion!!!!!.....
The UK, likewise, while the country/people are rich, the government isn't.
The UK government’s debt stands at $9 trillion now......
I was going through the IMD lectures and found interest lectures which I want to share with you regarding the forecasting an economy.