Competition: present and future
DOI link for Competition: present and future
Competition: present and future book
As two of the world’s largest and most populous eco nom ies, China and India encounter a rather unusual prob lem. Their growth rates are among the fastest in the world. Yet they have large numbers of poor people who have not bene fited from these high growth rates. Indeed, as the world’s largest de veloping coun tries, both are in the iron ical situ ation of being labelled eco nomic superpowers while they grapple with chronic de velopment challenges. The apparently paradoxical outcome of being de veloping eco nom ies and yet the world’s major eco nomic powers has resulted in both searching for means for maintaining their rapid growth, as growth is seemingly the only answer to the outstanding prob lems of pov erty and low incomes. Both, how ever, realise that maintaining high and broad based growth requires access to much greater reserves of nat ural resources than those avail able to them. Furthermore, growth requires moving into new markets and expanding diplomatic and stra tegic rela tionships in a manner that furthers long term eco nomic ob ject ives. What all these also imply is that China and India can hardly avoid competing with each other in their race for resources, markets and allies. This chapter focuses on some of the major spheres of com peti tion between China and India in their quest to maintain high growth and make their people in teg ral parts of the growth pro cess. With both coun tries competing for stra tegic space in a globalised world, it is inev it able that they will compete for fin an cial assets and nat ural resources. Such com peti tion may not only produce friction, some of which might be short-lived, but can also yield inefficient outcomes. The chapter examines the nature of Sino India com peti tion with respect to obtaining access to energy and water resources, forging bi lat eral trade agreements and deploying foreign aid as key aspects of their com petit ive interface. It also discusses friction in trade that has been a rather regu lar feature of the bi lat eral eco nomic engagement.