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Monday, March 15, 2004

It's India Above China in New World Order Via HBSWeekly

Can India overtake China? That's the title of an influential new article in Foreign Policy magazine. A Q&A with authors Yasheng Huang of MIT and Tarun Khanna of HBS.Comparing India and China is important because the two countries have embraced very different models of development. The reasons they have done so are complex but, in general, China has discouraged or actively undermined local entrepreneurship in favor of an foreign direct investment-dependent approach, they say. India, on the other hand, is building an infrastructure—however slowly—that allows entrepreneurship and free enterprise to thrive. By making fuller use of its resources, India's long-term outlook may be far stronger, they suggest. Macroeconomic statistics cited by Huang and Khanna show China clearly in the lead. "But," the authors wonder in Foreign Policy, "the real issue isn't where China and India are today, but where they will be tomorrow. This topis has been identifed as an emerging area of study and research. We shall see books coming shortly on this topic.
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