China and India Exposed
BERKELEY – Chinese Premier Wen Jiabao’s forthcoming trip to India, following hard on the heels of President Barack Obama’s recent visit, will provide another opportunity for the media to gush about the growing global economic clout of China and India. We can be sure that the soft underbellies of both economies will be kept hidden from view.
After a couple of centuries of relative stagnation, these two countries, containing nearly two-fifths of the world’s population, have experienced remarkably rapid income growth in the last three decades. In manufacturing and services (particularly software, business processing, etc.), respectively, China and India have made huge strides internationally, and their acquisition of global companies has attracted considerable attention.
But some dubious assertions have, through constant repetition in recent, often breathless, accounts about the two economies, become part of conventional wisdom. Much of what really goes on inside these two large countries is often left out.