Month: October 2010

India Could Surpass China

Chetan Ahya and Tanvee Gupta of Morgan Stanley, an investment bank, predict that India’s growth will start to outpace China’s within three to five years. China will rumble along at 8% rather than double digits; India will rack up successive years of 9-10%. For the next 20-25 years, India will grow faster than any other large country, they expect. Other long-range forecasters paint a similar picture.Several factors weigh in India’s favour. The first is demography. Indians are young see chart . “An ageing world needs workers; a young country has workers,” says Mr Nilekani. Previous Asian booms have been powered by a surge in the working-age population. Now it is India’s turn.

Indian firms export a lot of services, but their primary focus is on the needs of domestic consumers. Indian shoppers demand goods that are cheap, rather than fancy. Indian “frugal innovators” oblige. Tata Chemicals makes a filter that requires no power and can give a family of five safe drinking water for a month for 30 rupees ($0.65). Researchers at the Indian Institute of Technology and the Indian Institute of Science produced a prototype for a $35 laptop in July. A firm called Ayas Shilpa makes suspension bridges for a tenth of the price of conventional ones. In a country where countless villages are connected to the outside world only by perilous rope bridges across raging rivers, this is a colossal boon.

via Business in India: A bumpier but freer road | The Economist.

Iran’s Secular Dictatorship

The latest salvo, via a Web site called Mashanews run by Ahmadinejad’s chief of staff, Esfandiar Rahim Mashaei, didn’t mince words. “Iran needs to remove the mullahs from power once for all,” it read, “and return to a great civilization without the Arab-style clerics who have tainted and destroyed the country for the past 31 years.” The executive branch’s current stance on the Shiite clergymen who have shaped Iranian politics since 1979 is summed up as, “din (religion) should be distinct from dowla (state).” Indeed, Ahmadinejad’s supporters have begun comparing him to King Cyrus the Great, the founder of the Persian Empire who kept those two institutions separate.

The shift is based on the political realities in Tehran. Having survived the last election thanks to his allies in the civil bureaucracy, the Islamic Revolutionary Guards, and the Basij paramilitary, Ahmadinejad now has little to fear from the mullahs and their supporters. So he has begun to insist that “the executive is the most important branch of government,” thereby challenging oversight by Supreme Leader Ayatollah Ali Khamenei and Islamic political institutions.

WPR Article | Ahmadinejad’s Nationalist Attack on the Islamic Republic.

Here Comes The China Navy

China has the world’s second-largest naval service, after only the United States. Rather than purchase warships across the board, it is developing niche capacities in sub-surface warfare and missile technology designed to hit moving targets at sea. At some point, the U.S. Navy is likely to be denied unimpeded access to the waters off East Asia. China’s 66 submarines constitute roughly twice as many warships as the entire British Royal Navy. If China expands its submarine fleet to 78 by 2020 as planned, it would be on par with the U.S. Navy’s undersea fleet in quantity, if not in quality. If our economy remains wobbly while China’s continues to rise — China’s defense budget is growing nearly 10 percent annually — this will have repercussions for each nation’s sea power. And with 90 percent of commercial goods worldwide still transported by ship, sea control is critical.

The geographical heart of America’s hard-power competition with China will be the South China Sea, through which passes a third of all commercial maritime traffic worldwide and half of the hydrocarbons destined for Japan, the Korean Peninsula and northeastern China. The United States and others consider the South China Sea an international waterway; China considers it a “core interest.” Much like when the Panama Canal was being dug, and the United States sought domination of the Caribbean to be the preeminent power in the Western Hemisphere, China seeks domination of the South China Sea to be the dominant power in much of the Eastern Hemisphere.

via Robert D. Kaplan – While U.S. is distracted, China develops sea power.

Is It 3rd Party Time In 2012?

“We basically have two bankrupt parties bankrupting the country,” said the Stanford University political scientist Larry Diamond. Indeed, our two-party system is ossified; it lacks integrity and creativity and any sense of courage or high-aspiration in confronting our problems. We simply will not be able to do the things we need to do as a country to move forward “with all the vested interests that have accrued around these two parties,” added Diamond. “They cannot think about the overall public good and the longer term anymore because both parties are trapped in short-term, zero-sum calculations,” where each one’s gains are seen as the other’s losses.

We have to rip open this two-party duopoly and have it challenged by a serious third party that will talk about education reform, without worrying about offending unions; financial reform, without worrying about losing donations from Wall Street; corporate tax reductions to stimulate jobs, without worrying about offending the far left; energy and climate reform, without worrying about offending the far right and coal-state Democrats; and proper health care reform, without worrying about offending insurers and drug companies.

via Op-Ed Columnist – Third Party Rising – NYTimes.com.