Globalisation and the ‘Emerging Giants’- -China and India- and Development: Challenges

1. Globalisation and the ‘Emerging Giants’- -China and India-and Development:Challenges DR SUMIT ROY* Visiting Senior Research Fellow School of International Relations & Strategic Studies [SIRSS] Jadavpur University Kolkata, India This lecture is based on papers presented at SIRSS, Kolkata ( March 2009), the Nordic Africa Institute and the Gothenberg Book Fair, Sweden (September 2008) and the Open University Kolkata ( Spring 2008)

2. 1.SummaryGlobalisation is a historical process. Its contemporary phase is marked by compression of the world economy and a blurring of national borders driven by new information and communication technology and rapid transportation. This is underscored by a shift from state to non state market led policies to guide development and the creation of a ‘new space’ which coexists with the nation state. A major challenge is the relationship between developing countries and globalization and its outcome for the national and the world economy. In this context the focus of this lecture is on the nature of integration of two major developing nations-China and India-coined the ‘Emerging Giants’-into a changing world and its implications for reshaping international relations. This is underscored by forces to induce structural transformation in both nations-liberalisation and economic cooperation. Critical questions are posed on the EG revamping global political economy.

3. 2.Focus The nature of integration of the ‘Emerging Giants’-China and India-into a changing world and its implications for reshaping global political economy and power relationships

4. 3. Globalization compression a ‘borderless’ world a ‘new space’ coexisting with the state integration of nations into a changing world national sovereignty and globalising developing nations integrating and its impact on the national and the world economy stabilty of globalization and crises-1929-30 to 2007-8

5. 4. Globalization, integration and structural change TheTThe process of integration of the EG into the world economy and the underlying forces driving structural change in both- a comparative study Integration: The EG as ‘Global Players’ -global political and economic power -shift in balance of power from developed to developing countries –exemplified by BRIC (Brazil, Russia, China, India) -shifts in post cold war strategic vision of the EG -global and regional strategies -mounting hold of the EG in the global economy-contribution (%) to GDP, trade and finance

6. Structural Change The historical shift from state to market led forces to boost growth through liberalization and subsequent measures to bolster the process through economic cooperation Liberalization Policies to induce domestic and external liberalization in the context of ‘opening’ up the economy under different and shifting political structures -the Domestic-external economy: -macro indicators and contribution of key domestic and external sectors to GDP, rates of growth of GDP, productivity, rates of savings, levels of trade and import tariffs and levels of FDI - the implementation of market led measures through the key domestic and the external sector

7. Economic Cooperation Bolstering growth through economic cooperation in the frame of historical tensions: -unresolved territorial disputes and mutual suspicions • growing rivalries-energy, regional influence, realignment of power relationships • future of a ‘shared vision’

8. 5. Insights The changing EG-world economy relationship poses many challenges centred on a rebalancing of regional and global power:: -emerging’ or ‘sleeping giants’ -looking ahead-the EG and developed and developing nations -sustaining growth in the EG-domestic and external forces -rethinking national, regional and international development policies -the Emerging Giants’-the vision and the reality

9. THANK YOU