Download Chapter One:

State of the World
2006
Chapter One
China, India, and the New
World Order
China, India, and the New World
Order
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In the last 2 decades, China’s population has had
a 9.5% growth rate.
The economic reform and growing work force in
India could make the country the world’s fastestgrowing major economy in the next 15 years.
Both countries will become more than just
economic powers but world powers as well. This
rise in power makes China and India prominent
figures in whether the world succeeds in the
future.
But with the rise also brings major strains on the
economy with a shortage of necessary resources
to continue in the way we are going right now.
The New World Order
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Rise in World Economies:
• “The economic successes of China and India are based
not on the richness of their natural resources but on
decades of investment in their people”
• Top universities have produced scientists, engineers, and
accountants.
• Bangalore helps boost the economy by the success of
their software industries. Success brought on by taking
advantage of several available “resources”: low wages,
knowledge of English, and science/ engieering talent
• China becomes a lead automobile manufactorer and will
become a leading exporter in the near future.
• The rise in China and India’s economy has created a
strain on the global resources available.
• Widespread pollution in both countries causes acid rain,
poor air quality and little fresh water.
Choosing An Energy Future
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Coal provides more than 2/3 of China’s energy and
over half of India’s. Coal however also aids in the
pollution of both countries by adding ash, sulfur, and
sulfur dioxide into the air.
In 2005, the need of electricity exceeded the supply
available causing widespread blackouts. This caused
Chinese companies to install oil-based generators.
The consumption of oil in both countries has doubled
in the last decade.
Solar, wind, and biomass have become more practical
options for China and India as energy sources.
Turning to World Grain Markets
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China and India depend heavy on foreign
oil.
These two country are largely selfsufficient in the food today.
Since 1985 China has never imported
more then 6% of grain that is consumed
India has not imported more then 3%
The average Chinese consumer twice as
much grain directly as the United States
Look at table 1-3 in book
Look at page 14 table
Ecological Capacity: enough for
everyone.
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Can the world stand the expansion?
No according to the 2005 Millennium
Ecosystem Assessment
The Ecosystem has been challenged even
when the two most populous nations were
just arriving at that center of the global
economic stage.
Look at table 1-4 page 16
The Chinese and Indian footprints could
have a substantial ecological impact
The United States footprint keeps growing
Making Choices
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China and India have choices to make about
adopting Western models of development.
China must acknowledge the widening gap
between rich and poor and decrease in
environmental resources due to overpopulation.
Due to overpopulation, “new” ideas of
transportation are being used such as, bikes and
buses.
In India, there is a displacement of large groups
of people due to building of dams, which has
decreased quality of environment.
Using rain harvesting in order to build water
reserves.
Rethinking the Global Agenda
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Increased awareness of environmental, over-population,
economy, and world trade.
Looking to improve the future by foreseeing the inevitable.
China, India, and USA must have a commitment to prosper
within limits imposed by nature.
China and India will need to participate in a global effort to
built world’s economy
USA, China, and India will need to reduce competition
among each other and cooperate for sake of the world
China and India could eventually join the G-8.
USA, China and India will need to work together to convert
to new energy resources
They should commit to developing a new model for
agriculture
Rethinking the Global Agenda
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Discouraging people from an unhealthy meatcentered diet could create a better grain market.
Nations will need to understand cultures of India
and China to further collaborate with each other.
Professional exchanges.
View up and coming nation not as contenders but
as partners in a better global economy.