Introduction

Since the 1980s there has been a steady shift from West to East in the international system, first economically, then politically and culturally. Emerging markets in Asia have moved up the value chain of industrial production processes and the share of Western industrialized countries in global GDP has declined. Recently the GDP of China overtook those of the US and the EU in terms of purchasing power parity, though in current dollar terms it remains considerably smaller (see Figure 1.1). Besides the G7, the G20 has emerged as an international platform to discuss challenges of economic cooperation, albeit with mixed success. Asian nations like China and India also assert themselves in security matters and seek new avenues for investment flows and development cooperation.