Chindia Takes Over
TED talk forecasts the swift economic rise of China and India – so what does it mean for B.C.'s economy?
Recently, my friend Andrea Lee held a private showing of TED Talks and one of them leapt out at me as very instructional for anyone in B.C.
Swedish doctor and researcher Hans Rosling took a sweeping (and hilarious at times) look at the world’s economic history. I have to say, I never found economic theory or history so interesting.
In it, Rosling predicted that China and India – Chindia, as the venture capitalists call it – will rule the world economically by 2048.
Just like they did for centuries before 1850.
It seems that the two countries were the world’s economic forces while most of Europe and the early U.S. were only beginning to figure out such things as manufacturing, science, and trade.
But by the mid-19th century, Europe had begun to take over China and India and, as a consequence, plunged them into servitude and poverty for the next 200 years.
However, in the last decade, China and India have been expanding their economies rapidly. China is now the world’s second biggest economy, while India is making rapid gains, particularly in the area of technology.
Both countries are using their vast populations to create economic powerhouses in their own right. Meanwhile, the United States is hitting an economic plateau, and Europe is declining.
The only things currently holding China and India back are social advances. Both countries are still plagued with poverty – probably related to those large populations – lack of education, and inadequate healthcare.
But, Rosling says, both are starting to conquer those problems and will eventually neutralize them as obstacles. Then they’ll rule the world once again.
Since B.C. is the part of Canada most closely allied with China and India – we have strong ties with both countries – all businesses here had better take their eyes off the U.S. and start factoring “Chindia” into their long term plans.
While 2048 may seem like a long way off, it’s not too distant in business terms. That march to Chindia’s ascendancy has already started.
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