The rise of China and India: Adjustment pressures and challenges for resource-rich Asian developing countries

The recent rapid growth of China and India, the world’s two most populous countries and the two largest economies of developing Asia, has transformed the global economic and political landscape.1 Though the global financial crisis has dampened the growth of both China and India, they appear set to maintain a significant growth rate differential with developed economies. Indeed, recent developments will probably further strengthen their pivotal role in the regional economy, emphasizing their importance for the neighboring Asian economies.