Friday, September 30, 2005

The Silk Road Re-Opens

China and India have resumed trade along the Silk Road according to this report by Randeep Ramesh:

What's happening [along the Silk Road] is only part of what is now being called the "Chindia effect", a phrase that has gained currency as it dawned on analysts that if the current growth rate persists in China and India, by 2050 the two nations will account for roughly half of global output. The "Chindia" region's potential of huge domestic markets - encompassing a third of humanity - cheap highly skilled labour and governments pursuing capital-friendly policies have led many to conclude that the world is at a tipping point in history.

In Mapping the Global Future, a report by the National Intelligence Council, a division of the CIA, analysts concluded: "In the same way that commentators refer to the 1900s as the 'American Century,' the 21st century may be seen as the time when Asia, led by China and India, comes into its own."....

Despite its reputation as a software superpower, India's exports have been driven by the export of one item: iron ore. Last year the country shipped 60m tonnes of iron ore to China, whose voracious construction industry is gobbling up the world's raw materials.

Chinese officials have long insisted that if their country is the workshop of the world then India is the globe's office.
The logic is that both can work together to corner markets. Many Indian IT firms already employ hundreds of programmers in China. |Guardian Unlimited|(emphasis added)
You can find Mapping the Global Future here.

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