Region:
BRICS
Category:
Economy
Article type:
Opinion

Argentina should be getting closer to India and China

Region:
BRICS
Category:
Economy
Article type:
Opinion
Author/s:
By Dr. Christian W. Meniw
Publication date:
Print article

The world in which our children and grandchildren will live will be radically different. China and India together will constitute 39 percent of the global economy in 2030, compared with 34% in the U.S., Japan and the eurozone combined, according to predic

Why Argentina should be getting closer to China and India? By several factors, mainly because the Chinese economy is now the leading power in the world and India the third, and that both will be stronger in 20 years, far more than the United States, Japan and the euro area, this according to the OECD and the IMF.

According to the Organization for Economic Cooperation and Development (OECD) based in Paris and consists of 34 mostly Western countries, there will be a radical transfer of economic power in favor of emerging countries in the next 50 years.

In 2011, America was the world's largest economy with 23 percent of global gross domestic product (GDP), ahead of China and the eurozone, both with 17 percent. However, since last year, China now ranks first in the World Economy. According to a report "Looking to 2060: An overview of long-term growth," China will be the world's largest economy with little advantage in 2030 jointly with India and relegating the economy of the United States third place.

China and India together will constitute 39 percent of the global economy in 2030, compared with 34 percent in the United States, Japan and the eurozone combined, according to predictions. In 2060, its share in GDP is 46 percent. "The world in which our children and grandchildren will live will be radically different from ours," said OECD Secretary-General Angel Gurría. According to Gurria, believes this is not only the rates, but those who have been lucky enough to be in these countries, growth is daily and constant.

Moreover, until 2020 China remains the country with the highest growth rate, but after that date will be overtaken by India and Indonesia because the Chinese people begin to show signs of aging. The Indian economy is already showing signs of overcoming the Japanese and approach the eurozone. In 2060, the OECD believes that India is the second largest economy in the world, behind China, with 18 percent of total production, compared to 16 percent in the U.S. and nine percent of the eurozone.

But despite enormous progress in these countries, the OECD believes that the gap between the living standards of the population in Western democracies and emerging will continue without major changes in the next five decades. "In particular persist long term large differences in secondary education," says the report, which states that only a great educational reforms in Brazil, China, India and Indonesia will change this fact. The main reason for the stagnation in the industrialized countries is the rapid aging of its population. The OECD believes that this will affect in particular Germany, Luxembourg and Austria.

The study estimates a global annual economic growth averaged 2.9 percent, but here are clear differences between countries such as India (5.1%) and China (4.0%) with the United States (2 , 1%), France (1.6%) and Germany (1.1%). In the case of Spain, the reports also indicates that grow below the world average and the OECD, with 1.7% on average. Between 2011 and 2030, analysts believe will expand 2.0%, and between 2030 and 2060, an average of 1.4%. As mentioned here, it is very important that Argentina has increasingly relationship with India, as is well doing with China, notably in the last week signed a number of agreements, which will mark a before and after in our current economy.

The future of the world is constantly changing, not only climate but in macro economic terms. Every time India and China are making a difference on the rest. Hopefully soon everyone in Argentina with more emphasis can see why you have to learn more of these countries not only in the export or import, but the great possibility to build joint ventures, offering tourism, among others.

Our plan for the future as a country is that universities offer more courses on China and India, racing for enhanced exchange generated bilaterally by local, to see an empirical perspective and to study not stop focusing on the Asian markets in China and India, as indicated in the article. It's not a dream talking about India and China, it is a reality! Now from our place, we must promote this exchange to promote not only mentioned here, but also so that each time we prepare for future climate that is coming which will be very different than we know today.

Dr Christian W Meniw.

President of the Chamber of Commerce Indo Argentina, Argentina headquarters.

www.indo-arg.com

traslation: Belen Zapata