Will the Continuing Rise of China and India Be Unequivocally Beneficial for Australia - Literature review Example

Writing The rise of China and India: Benefits to Australia Customer’s Name Customer’s Grade Course Customer Tutor’s Name 9th September, 2010 Abstract This paper discusses the benefits accrued emergence of China and India as super powers to the Australian nation. The growth of China is a real example that any nation can rise and ignore the odds as it has been able to gain a lot in less than three decades. India on the other hand has had its impact in technological revolutions, and this is what Australia is getting from such a rise. Some of the areas discussed as beneficial to Australia are: defense strategies, foreign direct investment, health sector, trade development and infrastructure development Introduction Any rise has its lows and highs, but the rise of both China and India has helped benefit some nations in the world. China is easily emerging as a world super power and this has sent chills in other powerful nations in terms of economy and politics. China’s rise is a peaceful one and it has not shaken others in the wrong way and in fact, its rise was not detected, and such has helped it rise in less than three decades without getting noticed by major world players. There is so much a country like Australia has or is to benefit from the rise of both China and India and such includes trade, health improvement and infrastructure. Australia is not the only beneficially of the revolution of China and India, but also the Asian nations, but Australia is seen from the study that it is at the centre of major revolutions. This is more in trade as the two emerging power houses seek to expand their business territory to others. Australia is compared to Africa which has seen much of the China’s technological revolution and production capability of the nation being practiced in the continent. India on the other hand has tried its mark in introducing new forms of production, but it is inhibited by its huge population. However, there are business centers being propped up in Australia and Asian nations as a result of India’s efforts to take a share of the business world. China’s Rise in the World China’s economic development is one of the most hailed across the world and it is showing its dominant view of multiple products in various countries. What is appalling is its high and fast transformation and it is occurring in such a short time in a smooth way. Today, it is a common talk to hear people talk of china’s product in the market. The significance has caught most great powers unaware and there is a talk that China is increasingly becoming a post-cold war super power (Brown, 2000). According to Thomas (2004), the rise of china can be seen from three main angles: domestic economic development, international trade and foreign and strategic policy. This rise is being described as a peaceful rise rather than the common orthodox methodologies where nations engage in silent or physical wars to get to the top. Compared to America, China’s rise is silent one while America had to get itself involved in wars like the World War 1 and 2 as well as the cold war to stamp its authority. According to Ito & Hahn (2010), the economic development was not an easy uphill and the nation’s leadership had to wait for more than 25 years to gain what they have today. By the year 2003, China’s Growth Domestic Product (GDP) was about US dollars 1.4 trillion, a figure which made it rise to be the seventh largest economy in the world and the second largest in terms of the purchasing power parity. Schmitt (2009) notes that, there are more signs that it is not stopping at its current position and analysts see more from China in some few years to come. China has tended to rely on strong and influential analysts for its prosperity, and they drew a road mark years back and those fruits are now being realized in this decade with its mark on the world of business and technological revolution (Cooney & Sato, 2009). From the phones, the motor cycles, cars, and many of the household items have trademarks belonging to China companies. Another key area is in the infrastructure where China companies have won most of the tenders in Australia and other underdeveloped nations. In the rise of China, so much has been affected, and it seems democracy has not fully gained roots. According to Skeffington (2008), the Chinese media has been affected to a great extent as the nation prospers. China highly practices communist’s methods in its governance, and the China media is expected to fully comply with the governments regulations and not rough it the wrong way. The regional order in Asia is evolving to one with powers of economy and politics. Three approaches have been discovered to have enhanced growth in this region as influenced by China’s rise: Realism, liberal institutionalization and constructivism (Peng & Wei, 2009). If only China could address the domestic woes it regularly faces, it would mean a real super power being created in the Republic of China, and become the second nation with such power in itself after the United States. China is a real investor in African nations and most of African administrations have turned for China’s help in their economic and developments. Especially in infrastructure building, China has made a real impact and is seen to be taking the lion’s share of the orders to upgrade major infrastructures (Goldstein & Pinaud, 2006). Communication sector has also seen China become a real player in the African countries with most of the products such as phone and internet gadgets having labels of the China firms. For example, South African firms are using the management styles of China, that is, their management capability such as organization of production and distribution activities as well as adequate technology in order to get a competitive edge in the global markets. Others have made to go to invest in China so as to get the best of the opportunities in China world; for example, SAB Miller Company has invested US dollar 400 million in Chinese consumer goods since 1994 (Goldstein & Pinaud, 2006). Contrary to what many view that the European Union may have a problem with the rise of China and its emerging powers, it actually has no ideological issue with it and has recognized it as a real power since it is not a major power itself (EU security forum, 2008). This is mainly because the European Union is only powerful in economies and since China’s powers are all rounded, the China’s rise should not create any friction within the European Union. The China statistical year book from the year 1990 shows that China’s best performance was in the year 1992 before dropping drastically between the years 1993 to 1999 (Ito & Hahn, 2010). It however has risen back and by the year 2007 it had neared the 1992 mark and since then, the rise has been steady while more is seen to be on the way it tries to get to the top of the world in political and economic powers in the world. India’s Rise and Its Significance in the World Indian people just like their Chinese counterparts are confident and dynamic and this is what is compelling in the views of other people. People going to India are amazed by the sheer dynamism of Indian nation, a nation on a great step to prosperity (Simon, 2007). India has come to the fore with its intensive use of Information Technology which has enabled it revolutionalize how industries are run in the world. Kesavapany & Mani (2008) tends to argue on the contrary in writing that India has done little to make the lives of the Indians any different despite the great steps to prosperity, and it is not comparable to the rise of China. The two nations are based in Asia and the argument is that China’s steps to prosperity are far much ahead of that of India. India consists of so many diverse communities and there has never been any overarching organization which can influence the Diaspora the way China has succeeded in influencing its Diaspora communities (Kesavapany & Mani, 2008). The rise of India on the various Indian immigrant societies is presented in uneven manner. For example, it creates business opportunities to some while creating none to the others and this is a major shortfall of India as a rising nation. The highly educated in India have opportunities to participate in global forums and are highly paid while the lowly educated get no near to prosperity especially when it comes to international participation, and their salaries are low (Kesavapany & Mani, 2008). The growth and civilization of the Indian people has been due to arts and archaeology studies plus practices (Bridget & Allchin, 1982). An account of the India’s transformation to a foremost economic power is seen in its efforts to build a strong culture of its people and advancement of Information technology. China relied on education for its growth but it seems that India has invested a lot for its people in terms of culture. T The biggest worry for India in its effort to be at the top is its huge population where it has more than 600 million people less than 25 years of age. Before it makes an impact with its Information Technology, many years would have passed because it has to maintain that huge number of people (Histock, 2008). The wealth are investing more in business and coming up with big companies or conglomerates. This is making India’s image better itself in the world of business with many recognizing that India are a go getter when it comes to business and their businesses prosper well (Rungta 1970). The rise and its significance to Australia Australia is a big beneficially of China and India’s rise to prosperity especially in the world of trade and business. While China and India are cutting their edge in the world of business, Australia stands in the middle to benefit especially when these two emerging powers engage other world nations in competition. While the two are trying to make a mark in the world, Australia, just like Africa gains from real investments and engagement in the world of trade (Ishihava, 2009).. Benefits to Australian Defense Banlaoi (2008) notes that, the rise of China was a major factor in broadening of Philippine-Australian defense relations and this was influence by the real worry that China is highly progressing in economic power and a growing military base power. This phenomenon has thus helped Australia and Philippine partner to enhance these defense strategies so as to be ready for any counterattack from any interested party such as China. Foreign Direct Investment China has had escalating interest in resource investment worldwide which is driven by the appetite for resources in the growing markets in China and India. These economies are now major players in overseas resource investment and development, and Australia is one of the beneficially of direct foreign investment (Drysdale, 2001). The two nations are already sources of Internal Capital and they are both active candidates for investment in the Australian resource industry and this is influenced by their capacity to mobilize capital for direct and indirect investment. Benefits to Australian Health Sector According to Lofgren (2007), the significance of India and China’s growth has been seen in the biopharma markets where the nations have directly invested in this area. Australia stands on the middle to benefit on this as an Asian country and when the two emerging powers are trying to get a market segment in this health sector, Australia intervenes by providing a ready investment area in its soil. The credibility of the drug firms in India has benefited from the reputation of its companies across the world and such includes the Australian nation where it has heavily invested (Lofgren, 2007). Benefits in Trade Development China has initiated a number of measures to ensure that it gets along with the Australian nation in terms of imports and exports; for example, report indicates that Australia was China’s largest source of imported coal, iron ore and nickel ore in the year 2005 (Basu, 2007). Mai & Adams (2005) notes that, Australia and China in the year 2002 established a bi-lateral trade and investments measures which would ensure that Australia and China enter into a Free Trade Agreement (FTA). Benefits in Infrastructure Development Basu (2007) noted that, infrastructure is dependant on the emergence of a more vibrant services industry and that is what China’s investment in Australia is doing to the infrastructure. With increased input in Australia from China, the country has benefited in the growth of the infrastructure, especially in the information technological infrastructure. Roads would be improved to facilitate movement of goods while other producing factors would be incorporated. Conclusion From the study, it is clear that there is a lot to get from a partnership with such a country like China or India. Australia is such a country which has seen its growth enhanced by the partnership with both India and China but China’s benefits are more than those of India. India specifically has grown Information Technology but it has a large population to feed, but with China’s economic empowerment, it has been able to feed its people and invest in other nations like Australia. Australia’s defense strategies have been noted to have a boost with both China and India continues to rise, and this is majorly due to it being close to the two nations. Other area Australia has benefited from the great rise of the two nations is in foreign direct investment, health sector development, the trade and bilateral/multilateral relations, and the infrastructural revolutions. On the health sector, China is continuously expanding its biopharma markets and with this, Australia has seen major increase in amount of medical products for its people and general improvement of health for the people. The two nations have invested a lot in building technology in other nations and this is majorly to have a great say in the world’s technology area. The foreign direct investment is in the mutual aid benefit in the two nations, that is, in China-Australia relations and India-Australia relations. China and India have companies in Australia as private companies and these are helping increase the domestic growth. References Banlaoi, C. (2008). The Philippines and Australia Defense and Security Cooperation against Terrorism. Philippine Institute for Political Violence and Terrorism Research, PIPVTR monograph No. 1 Basu, K. (2007). Current and Future Benefits to Australia from China’s Economic Reforms. 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