Emerging Economies in Globalising World

Question: Discuss about the Emerging Economies in Globalising World. Answer: China in the Global Economy The economic transition of China has created long-run implications, not only for the emerging economies but also for the leading economies as well. The International Monetary Fund (IMF) has already rated China as the leading economic superpower of the globe surpassing the United States of America (Stiglitz, 2015). By the investigation of major economic indicators such as Gross Domestic Product (GDP), unemployment rate, and consumer purchasing parity, the economic position of China will be a lot clearer. Over the previous 30 years or so, the Chinese economy has shown significant growth and development to become the leading economic superpower in the world (Schweinberger, 2014). The primary agenda of the article is to identify whether China is in the position to lead the world while the nation has become the economic superpower. In the debate motion, it can be stated that China has lacked the power to lead the global industry. Since the global recession of 2008, the Chinese economy has come a long way as in 2015-16 the GDP of the country has been recorded as US$11007.72 billion. The reports of World Bank can be shown to prove the continuous rise in GDP. In 2017, the expected growth target of China is stated to be 6.5 to 7 percent due to debt buildup and rising risks in financial sectors. According to the data released by the National Bureau of Statistics of China, during the fourth quarter of 2016, the economy has expanded at a rate of 6.8 percent beating the previous data of 6.7 percent (Stats.gov.cn, 2017). Undoubtedly, the cut down in growth rate has been a negative indicator for the economy. In the recent consequences, the economy of China may seem to have lacked the force to rule the global market. However, in reality, the monetary, as well as credit policy of China, can create massive monetary outflows, to say the least (Kamrany Jiang, 2015). Fundamentally, the aggressive monetary policy of the Chinese Central Bank will trigger the major drivers of capital outflows in future. The most negative point in Chinas economy is the debt to GDP. According to the data resources, in 2016-16, Chinas borrowing has hit US$25.6 trillion that is almost equal to 250 percent of entire GDP (The Guardian, 2016). Meanwhile, such massive debt to GDP can be fatal for Chinas economy in the future. Currently, the government of China is in no position to reduce the huge borrowing numbers including household, corporate, and government borrowings. Precisely, the debt-fuelled expenditure can lead to the devastating outcome as far as the economic downturn is concerned. In this particular scenario, though China has been named as the economic superpower of the globe ahead of the US, the economy is in no position to lead the global industry in the upcoming decade or so. The fundamentals of the economy have not guaranteed long-run economic growth as debt pressure will ease up the substantial growth of the economy. Moreover, the current reserves of monetary outflows of the Chinese economy have remained significantly tight under the current circumstances (Wolf, 2016). Based on the economic research, China cannot be the leader of global industry although it may be the economic superpower. India in the Global Economy India is considered as one of the growing superpower of the globe by several economist of the world. According to Diamond (2005), India and China will compete with the United States for the global economic supremacy by the end of 2020. The potential for becoming a superpower is attributed by several economic indicators such as the demographic trend and the fast growing GDP of the nation. According to the report of International Monetary Fund (IMF), India has emerged to be the fastest growing nation of the world with a GDP growth rate of 7.3 percent (Pandey, 2015). Meanwhile, it is important for the country to overcome its social, political and economic problems to lead the global economy. Furthermore, the economic growth of India is also not yet influential in the current scenario over the international platform when compared to the former Soviet Union and United States. Hence, the fact of Indias aspirations to lead the globe are just wishful thinking is quite debatable. There are several factors that support the statement Indias aspirations to lead the globe are just wishful thinking to be false, while there are some factors as well that make the statement true. The factors in favour of India to become a global leader are presented herein below: Future advantage of location: The location of India is favourable for expansion of trade in the future. It is located in the north of the Indian Ocean that connects it with the entire world through sea route. Furthermore, the natural resources available in the country make it a valuable economic power in the globe (Dhanappa Jeur, 2014). Political Factors: India is one of the largest democratic republics of the world and has good trade relations with several major economies. It is one of the emerging markets for the foreign companies (Padma, 2015). Economic Factors: The booming economic growth of the nation is one of the supporting factors for India to become a superpower. It is expected by the IMF that the GDP of the nation will double by the end of 2030. The development of science and technology along with that expansion of the Indian organisations in the foreign market makes the debating statement false (Padma, 2015). Demographic Factors: It is the second largest populated country of the world with skilled workers and increasing literacy level. On the other hand, around 65 percent of the population is below 35 years of age. Military Factors: The Indian Armed Forces consists of two primary branches that are known as the Indian Paramilitary Forces and the Military of India. The Indian Paramilitary Forces is the second largest force in the world, while the Indian Military Forces is the third largest after the United States and China (Dhanappa Jeur, 2014). On the other hand, the factors that are against the Indian economy to become a global leader are presented herein below: Political obstacles: The diverse democracy of the country levies a high amount of tax over the economy. The Government of India has to consult several interest groups before taking any decision (Padma, 2015). Social Issues: India has 29 states with a diverse population belonging to different religion and caste. The caste system and religious barriers divides the country into small groups that makes the economy lag behind. Economic Obstacles: Some of the economic obstacles are the high rate of poverty, unemployment and inflation that pulls back the nation to become a global leader in the future. On the other hand, the infrastructure of the nation and disorganization acts as an obstacle for the economic growth of the country (Dhanappa Jeur, 2014). By considering the above factors, it can be seen that there are several positive factors by which it can be said that Indias aspirations to lead the globe is not just a wishful thinking. But, there are several negative factors that prove that Indias aspiration to lead the globe are just wishful thinking. Hence, it is quite difficult to predict the future possibilities due to the uncertainties that may come in the upcoming years. Therefore, I will both agree and disagree with the debate motion. References China's debt is 250% of GDP and 'could be fatal', says government expert. (2016).the Guardian. Retrieved March 2017, from https://www.theguardian.com/business/2016/jun/16/chinas-debt-is-250-of-gdp-and-could-be-fatal-says-government-expert Dhanappa Jeur, D. (2014). BRICS: Opportunity to India to Be a Superpower.IOSR Journal Of Humanities And Social Science,19(9), 57-60. Diamond, J. (2005).USATODAY.com - Prediction: India, China will be economic giants.Usatoday30.usatoday.com. Retrieved March 2017, from https://usatoday30.usatoday.com/news/world/2005-01-13-long-view-usat_x.htm Kamrany, N. Jiang, F. (2015).China's Rise to Global Economic Superpower.The Huffington Post. Retrieved March 2017, from https://www.huffingtonpost.com/nake-m-kamrany/chinas-rise-to-global-eco_b_6544924.html National Bureau of Statistics of China. (2017).Stats.gov.cn. Retrieved March 2017, from https://www.stats.gov.cn/english/ Padma, T. (2015). India: The fight to become a science superpower.Nature,521(7551), 144-147. Pandey, V. (2015).IMF expects India to retain world's fastest growing economy tag.The Economic Times. Retrieved March 2017, from https://economictimes.indiatimes.com/news/economy/indicators/imf-expects-india-to-retain-worlds-fastest-growing-economy-tag/articleshow/49245651.cms?from=mdr Schweinberger, A. (2014). State Capitalism, Entrepreneurship, and Networks: China's Rise to a Superpower.Journal Of Economic Issues,48(1), 169-180. Stiglitz, J. (2015).China Has Overtaken the U.S. as the Worlds Largest Economy.The Hive. Retrieved March 2017, from https://www.vanityfair.com/news/2015/01/china-worlds-largest-economy Wolf, M. (2016).Chinas future challenge for the world economy.Ft.com. Retrieved March 2017, from https://www.ft.com/content/9bae5ce0-f1db-11e5-aff5-19b4e253664a