ABSTRACT
The profound transformation underway in the world economy passed another milestone in August 2010 when the Japanese government released its second-quarter GDP numbers. These indicated that China’s economy had overtaken Japan’s in size, to become the world’s second-largest economy after the USA. China and India, the two most populous countries on the planet, are successfully integrating into the world economy while the large, advanced economies struggle with what is likely to be years of below-potential growth following the global financial crisis. So far, this shift in the centre of economic gravity is remarkable in that, while not without bilateral tensions, relationships among the world’s major states are both peaceful and collaborative in promoting common interests and collective action.
