I a post-graduate degree in management and am working in the areas of infrastructure development and livelihoods. My work experience includes stints in project finance, corporate planning, project development and public policy.
Its show time now and we'll know who's won. However, Mr Obama is on record with a lot of protectionist rhetoric (outsourcing, manufacturing jobs etc), so maybe you shouldn't consider your personal views as "global opinion". Historically, things have moved better between the US and India (particularly on issues of defence, terrorism etc) with a Republican President (whatever be the reason) than with a Democrat.
The point is well made in this article. Wages are still a small cost in industries that are heavily automated. The Indian economy in contrast has several large employers of export oriented businesses that are still small on automation and machinery - textiles / garments, leather, jewellery. At the high end - software industry is primarily a services industry with little or no branded products of any significance, even domestically.
Excellent points made, Dr Rogoff. The glitch is 1. that the structural adjustment normally exceeds the time period of a serving politician in a democracy. This results in protectionist tendences (e g US calls on preventing outsourcing of services and manufacturing). 2. The income gaps between those who adapt to the new technology and those who don't are stark. Investing in education for oneself becomes critical for long term financial survival.
EU can look towards regaining competitiveness by taking cuts in wages and looking for overseas business (non-EU) based on this. A large part of the deficits run up by govts have essentially been propping up standards of living/real income in these countries without corresponding productivity increases to boost incomes - something Germany has successfully done. In the medium to long term, many EU countries will have to readjust their expectations of the relatively luxurious standards of living they enjoy if they are to generate incomes based on competition from elsewhere or create high value propositions that also employ large numbers (difficult to do).