Ancient China was a self-contained and inward-looking economy with mostly domestic-driven prosperity, and it saw the world as a hierarchy of states with China at the centre. But today, China’s prosperity is linked to the globalisation of its economy, making such a hierarchical order difficult.
Posts tagged as “trade”
India should be careful not to repeat the mistakes of import substitution from the 1950s, which in principle lacked two crucial elements that made economic protectionism successful in some countries: export promotion and identifying the country's niche in the global manufacturing supply chain.
In this episode of Beyond the Headlines, Mohamed Zeeshan spoke with Kishore Mahbubani, former Singaporean ambassador to the United Nations. Mahbubani spoke about the role of the Quad, the new AUKUS deal, the ASEAN's fears and suspicions, India's strengths and opportunities, and much more.
The working middle class in the West faced difficulties due to globalisation. But unlike in the West, the rise of right-wing populism in India does not have an economic rationale. Instead, it actively sabotages the economic openness which has worked well for India in the past.
The basic principle of trade is that a country exports in sectors where it has a comparative advantage while importing in sectors where it does not. But in the Indian economy, only a minority of the workforce is engaged in activities where India is competitive.