Question

Sustainable development and the international responsibility of large multinationals in the developing world is a major issue. What do you forecast will be the strongest factors affecting the political, economic and sustainable future of China and India?

Answer 1

One of the greatest economist Karl Marx once said that history itself first as a tragedy and then as a farce. It means there is always a cycle which keeps rotating. We can also observe that over the period of time, strength becomes a weakness and vice versa.

Globalization has brought many new things such as cheaper production, new technologies, affordability and lower prices. However, it has also brought uncertainty, intense competition and voracious consumption of resources. This has led to the demand for sustainable development model which will conserve the local ecosystem and will utilize resources rationally.

China and India are the two biggest countries in this world in terms of population with a different political system and economic model.
China has been leading in manufacturing and termed as the factory of the world while India is marching ahead in software and services sector and commonly called the back-office of the world. However, each country has a huge population with over 1 billion each. It is this demographic advantage on which they cashed in, will be a disadvantage for them in the future.
Both countries are one of the biggest economies in the world according to purchasing power parity but still, there is a huge income inequality and regional backwardness is a matter of deep concern. Over-dependence on agriculture is consuming resources without commensurate output and stifling growth. This is creating socio-economic divisions which will affect political, social as well as the economic scenario.