From: S. Kalyanaraman
Go, Asia. More power through Indian Ocean Community.
I agree with Prof. Vaidyanathan. The time for Asia's dominance has come. One way to exercise the new economic power is to constitute an Indian Ocean Community which rival the European Community with a 7 trillion dollar combined GDP to start with. Details on how to get there may be gleaned from: http://sites.google.com/site/indianoceancommunity1/
It's imperative that Asia takes lead in the new economic paradigm
R Vaidyanathan / DNA Tuesday, February 03, 2009 2:47:00 AM
It will take decades to accept that the axis of global economy has shifted to Asia.
The current global recession [or is it a deep depression] is being attempted to be cured by the conservatives and liberals in the USA and Europe in their own old-fashioned ways.
Allow the markets to recover with a gentle nudge from government, say the conservatives, while the liberals want strong government intervention of a Keynesian type. Obama says these differences are no more important — it is more about the effectiveness of the government rather than size. This is Bollywood, sorry Hollywood dialogue without substance.
In the midst of all this gloom, a news report says that China has become the third-largest global economy, pushing Germany aside. Also, India and China are still expecting to grow at more than 6% this fiscal and may continue in the same way the next fiscal when the developed economies are struggling between negative growth and marginally positive numbers.
Let us go back in history. Angus Maddison (World economy -A millennial perspective; OECD; 2007) in his path-breaking study suggests that India (25%) and China (22%) had nearly 50% of the global GDP in 1700 AD and again in the 1820s. The great decline started after that, reaching 9% (China 5% and India 4%) in 1950.