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 Western
Europe and United States Power Lose the Global Economic
Dominance
The global financial crisis has accelerated the shift of
economic power to emerging economies
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The global financial crisis has accelerated the shift of
economic power to emerging economies. E7 emerging economies (China,
India, Brazil, Russia, Mexico, Indonesia and Turkey) are likely to
exceed the developed economies of the G7 (U.S., Japan, Germany,
United Kingdom, France, Italy and Canada) in the near future,
according to a report by PwC. PwC is one of the world's largest
consulting services business with PwC 161,000 people in 154
countries.
Continuous war has made the hardware and software sick of United
States economy. The budget for defense spending in the United States
economy is more than the total defense expenditures of the so-called
E7 economies (China, India, Brazil, Russia, Mexico, Indonesia and
Turkey).In 18th and 19th centuries, China and India were the major
economies that this G7 developed countries (USA, Japan, Germany,
United Kingdom, France, Italy and Canada).
In the 20th century the industrial revolution in Western Europe and
the revolution of high technology in the United States has
accelerated the shift of economic power to developed economies,
particularly the United States is significantly. China and India has
lost its dominant position in the economic power because of its
large population and to not overtake the industrial revolution. In
the 21st century, this temporary change of economic power is now in
reverse, "said the PwC report on the world in 2050.
It's not just China and India, HSBC estimates that 19 of the 30
emerging economies increases five times larger than the developed
countries. China and India are the largest first and the third
economies worldwide by 2050, marking the return of world order
revolution pre-industrial 18th and 19th centuries, with the United
States at number two conclude two influential reports from HSBC and
PwC, respectively.
What are the basic measurement of the global economy by HSBC and PwC?
Measuring GDP in purchasing power parity (PPP) - which addresses the
fact that price levels tend to be lower in emerging economies - the
analysis shows that the E7 emerging economies (China, India, Brazil,
Russia, Mexico, Indonesia and Turkey) are likely to exceed the G7
economies (United States , Japan, Germany, United Kingdom, France,
Italy and Canada) before 2020.
If instead we use the GDP at market exchange rates (MERs), then the
passage in the world economic order is slower but just as
relentless, with the E7 should go beyond the G7 countries around
2032. China also overtakes the United States the same year to become
the largest economy in the world based on GDP at market exchange
rates, but on a PPP this would likely occur before 2020. It's even
taking into account a slowdown in the growth rate of China over time
due to its one-child policy and the fact that, as she catches up
with the United States, it must rely more on innovation than in
imitation of continued growth.
These overrun estimated dates based on GDP at PPP exceeded estimated
dates based on GDP as under: -
E7 economic domination exceeds the economic dominance of the G7
countries on PPP basis in 2017 and in 2032 based MER.
The economic dominance of China will surpass the economic dominance
of the United States on PPPs basis in 2018 and in 2032 MERs based
India's economic dominance will exceed the economic dominance of
Japan in 2011 on PPP basis and in 2028 based MER
Russian economic domination exceeds the economic dominance of
Germany in 2014 on PPP basis and in 2042 based MER
Brazil economic domination exceed the economic dominance of the
United Kingdom on PPP basis in 2013 and in 2023 MER
Mexico economic domination exceeds the economic dominance of France
in 2028 on PPP basis and in 2046 based MER
Indonesia economic domination exceed the economic domination of
Italy on PPP basis in 2030 and in 2039 MER
Turkey economic domination exceeds the economic domination of Canada
in 2020 on PPP basis and in 2035 based MER
The most significant increase in its share of world GDP is actually
projected for India rather than China. In 2009 India's share in
world GDP was measured at only 2%. In 2050, this share could reach
almost 13%. India may overtake Japan by 2011 based on GDP at PPP,
and could even surpass the United States in 2050 on this basis.
The analysis shows that Australia and Argentina can be relegated to
the ranks of the largest economies of the G20 in 2050, while Vietnam
and Nigeria have the potential to join that list. Indonesia could
rise from the largest economy in PPP terms sixteenth in 2009 to
eighth place in 2050, surpassing not only in Italy but also France,
the United Kingdom and Germany over the next 40 years. Under the
measure, the UK does remain closely in the top ten in 2050 with a
ranking of 9th place on GDP at market exchange rates, or based on
the 10th GDP at PPP. John Hawksworth, chief economist at PwC, said:
According to globalsecurity.org comparative military spending United
States $ 623 billion, China is 65.0 billion and Russia $ 50.0
billion. No doubt the recession will be over in the near future in
the United States. It has many natural resources and become more
developed. In my opinion, borderless world has become
flattened by information technology and social networking -- United
States must stop its hypocrisy to say something and do
something. Economic war is becoming more relevant than military
war. The United States must cut its military spending at par with
China and stop its war with the Muslim world before becoming
insignificant. United States must subsidize its low technology
products to make them competitive products from China, which are
important source of employment in any country.
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Keywords :
United States, economic dominance , economic domination, emerging
economies, ppp basis, economic power, based mer, economic domination
exceeds, global financial crisis, Russia Mexico Indonesia, united
kingdom France, economies china India, India brazil Russia |
Author resource box:
Gaurav Virk, the author has a strong motivation to support
human-rights and
publish research on
rights articles worldwide info.
Read
latest Rights News : He is currently a final year student of
techos Gian (Indian Information Technology) and Diploma in Human Rights. |
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united
States, economic dominance , economic domination, emerging
economies, ppp basis, economic power, based mer, economic domination
exceeds, global financial crisis, Russia Mexico Indonesia, united
kingdom France, economies china India, India brazil Russia, United
States, economic dominance , economic domination, emerging
economies, ppp basis, economic power, based mer, economic domination
exceeds, global financial crisis, Russia Mexico Indonesia, united
kingdom France, economies china India, India brazil Russia |
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