ABSTRACT
Global capitalism has always been a dynamic and constantly mutating system, but even so, the dramatic changes witnessed in its geographical spread during the past two decades may be the most significant that have occurred over the previous century. After a long period during which the early-twentieth-century division of labour was cemented and reinforced, a new international division of labour is being established with the emergence of populous and potentially large developing economies as major players on the world scene. While several emerging economies in different parts of the world are increasingly important, the rise and economic diversification of China and India is of special significance because of their sheer size and future potential in terms of directing the course of global economic affairs. In this context, certain questions become very pressing. How sustainable is the economic rise of China and India? What problems and prospects does the current industrialization process in these countries generate? How will it impact on the developed world, in Asia (countries like Japan) and Europe and North America? Does a continued improvement in the material conditions of the majority of people in China and India, and more equitable sharing of the gains, require a change in their growth strategies?
