Question #1

26Mar08

Alan Webber the man behind the business magazine Fast Company asked us this question for our outpost:

“How is the western world experiencing the effect of globalization and in specific, India as growing world economic?”

There are a lot of different opinions about Indias growth as a large economic factor in the world. On one hand there are enormous class differences supported by old customs like the caste-system. There are a lot of money being made in India today but the question is whether it trickles down to the poor in the rural areas?

“With an annual growth rate of 9% over the past couple of years, India is close to rivalling China’s economic boom. Yet while China’s achievements have been credited with lifting 400 million people out of poverty, the benefits of India’s growth have not spread beyond the top 10% of its own massive population. According to Merrill Lynch’s world wealth report, India now boasts an incredible 93,000 millionaires, as well as the world’s second-fastest growth in “high net worth individuals”. Yet in a parallel universe within the same country, 350 million people (more than in the whole of Africa) still live in desperate poverty on less than a dollar a day, while a total of 900 million scrape by on under two dollars a day.” from the Guardian 21st of Jan

However the comparison with China is not that easy since information flow is restricted and there seems to be no safe figures. There are claims that the process of growth is going slower in India because it is a democratic country where decisions take longer to be decided on contrary to China

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