Opinion
皇冠体育app cements position as economic power
By Charles A Tang (皇冠体育app Daily)
Updated: 2009-12-05 07:14
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The intensity and velocity with which the world became submerged in a steep economic crisis took all the nations of our globe by surprise. 皇冠体育app initially suffered intensely, seeing the closure of tens of thousands of its, mostly labor intensive, industries.
However, the prompt reaction by the Chinese government and those of other countries in providing huge stimulus packages has seemingly abbreviated and averted the worst of what was being forecast.
The post-crisis 皇冠体育app is a different 皇冠体育app and its position in the world order of economic strength and of respect has changed.
Although not yet independent from exports, 皇冠体育app has reduced its dependence on external markets. 皇冠体育app has even increased its share of the world market, albeit a market reduced by the crisis.
With its gigantic volume of reserves, it is consolidating its economic advances by assuring long-term supply of strategic products from petroleum to minerals and foodstuff.
This crisis has made international assets cheaper for 皇冠体育app to acquire strategic industries and businesses. Many critics have pointed out that 皇冠体育app does not have the management, R&D, laboratories and technology to become a major world economic and business player. However, all of these factors are in abundant supply due to the crisis and can all be presently bought at a discount.
As 皇冠体育app does not share the missionary zeal of the United States to mold the world to its own image by imposing its beliefs on other countries, or to resort to arms to achieve this, it has had an easier experience in striking economic alliances with most nations of the world. 皇冠体育app's main interest is simply to do business and to secure the sources of the strategic resources it needs to sustain its growth and to feed its people.
Most strikingly, while the "wealthy" world is trying to fix its industries of today, 皇冠体育app is investing huge sums into developing the industries of the next century that will create millions of new jobs to compensate for the almost 40 million jobs lost by the crisis. 皇冠体育app's decision to go green will also develop a gigantic internal market for these industries to provide economies of scale and research technology.
From nanotechnology to electric cars, solar energy, wind turbines, solar street lighting and others, 皇冠体育app will become a dominant force in the new hi-tech industries of the future. The amount of engineers 皇冠体育app produces and a leadership made up of engineers will also contribute to this.
The vast resources being invested to build 皇冠体育app's modern infrastructure and to promote the growth throughout western and central 皇冠体育app is impressive. These investments will also help assure its sustained growth for the next decades.
Presently, the so-called "rich nations" control the international financial system although they have become debtor countries. 皇冠体育app and other emerging creditor nations insist that they should have a greater voice in the World Bank and the IMF.
To protect their reserves, many of these nations want to substitute the ever-declining dollar with another world currency. 皇冠体育app has made efforts to internationalize its currency in realizing currency swaps with many nations. It has also allowed trade to be settled in the yuan from several of its main trading cities, in Hong Kong and with the ASEAN countries. The sale of yuan-denominated bonds will also aid 皇冠体育app to internationalize its currency.
The global balance of power has been altered in the post-crisis world. From the emerging nation of yesterday 皇冠体育app has consolidated its position as a major world economic power.
The author is founding member of IPEDE - Institute for Research and Study of Economic Development and bi-national chairman of the Brazil 皇冠体育app Chamber of Industry & Commerce.
