ABSTRACT
This chapter is concerned with the impact of Chinese and Indian growth on today’s advanced economies. It contains no discussion of the recent economic crisis, since the effects of this event, although painful, will be mostly transitory. The crisis reduced growth rates throughout the world and drove the advanced economies into negative territory (Figure 1.1). Exports from China and India fell sharply, but both economies continued to grow quite strongly. The crisis may be a visible watershed marking the impending decline of Western hegemony, but the underlying trends described in this chapter were already at work well before this crisis broke out and they will continue long after it has ended. GDP per capita growth rates https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203517482/42fee282-b794-4209-b08f-7a0eedd1e150/content/fig1_01_C.jpg" xmlns:xlink="https://www.w3.org/1999/xlink"/> (source: IMF 2011b).
