America Seeks Growth at the Expense of Emerging Nations (Huanqiu,
China)
Is the United States trying to boost its own growth by
undercutting expansion in the developing world? This editorial from China's
state-run Huanqiu argues that the
United States, fearing higher growth in the developing world and shrinking
growth at home, is shooting itself in the foot by seeking to reverse that
dynamic, in part with its Trans-Pacific Partnership, which Beijing regards as a
kind of Trojan Horse to boost U.S. growth at the expense of emerging nations.
China Finance Minister Zhu Guangyao: At the APEC Summit in Bali, Zhu expressed concern about the U.S. budget impasse, saying that unless Washington acts decisively to avoid a default on its Treasury Bonds, China's economic interests would be badly harmed.
The
informal meeting Asia-Pacific Economic Cooperation leaders kicked
off in the Indonesian resort island of Bali yesterday, with President Xi Jinping's address drawing worldwide attention. Tomorrow, Premier
Li Keqiang is scheduled to head to Brunei to attend the
Association of Southeast Asian Nations (ASEAN). With U.S. President Barack
Obama forced to cancel his presence due to a government shutdown, the fact that
China's president and premier will be making these nearly simultaneous
appearances has made quite a global impression.
The
Asia-Pacific is the world's most dynamic region in terms of economic growth,
but it is bedeviled by never-ending controversy. China and the United States,
two countries on opposite sides of the Pacific and very engaged, are also extremely
suspicious of one another. So it is quite natural for the international
community to put the countries on top of the agenda when discussing the region, and
for there to be conflicting views.
America's
launch of the TPP [Trans-Pacific
Partnership] poses difficulties for the entire Asia-Pacific. The intentions
of the Obama Administration in pursuing this new trading system and Beijing's anticipated
countermeasures have become major uncertainties for the future of trade in the
region.
However,
regardless of what the United States does, progress in the developing world is
now an irreplaceable driver of global growth. Developed countries must
participate in and promote the prosperity of emerging markets simply to secure
their own interests.
Although
developed countries possess a great capacity for technological development, the
capacity of technology to drive economic growth is not unlimited. For instance,
updates of technologies like Windows and the iPhone handset
can only go so fast, the auto market is not dominated by a single technology, and
the cost of production and labor, the consumer's ability to buy, and many other
non-technical issues, are also important.
Posted By Worldmeets.US
On
the other hand, developing countries in the era of globalization have tremendous
potential for growth, and this potential is at least as great as that which can
be derived by technological innovation. That is why emerging market growth
rates now lead the world. Simply put, these countries need basic infrastructure,
roads, more buildings, and all of the other aspects of growth that the
developed countries have already experienced.
For
Western industrialized nations, these experiences have long been the basis of
economic growth, and up to now, for developing nations, as long as they maintained
a semblance of social stability, it has been an easy matter for growth rates to
surpass those of the developed world.
Apprehension
in the United States and other Western countries over low rates of growth is
understandable. The trend of emerging countries toward faster growth than the
West countries will go one for some time, and will be difficult to reverse,
unless they experience social unrest so great that it forces them back to a
situation unseen since colonial or semi-colonial eras.
Europe
and the United States need to recognize this trend, as their own national
interests can only be secured with continued overall human progress. A man
should not be too selfish, and the same goes for a nation. If the United States
continues to protect its own economic growth at the expense of economic and
social progress in developing countries, it will only be harming itself for
short term gain. As the country atop the global economic pyramid, it should
know that a "rising tide lifts all boats."
Since
American politics often encourages selfishness and quick profits, it's detour
from "reform" of the global trading system is cause for concern.
The
TPP has not yet been established and the relationship
between the WTO and APEC is also undetermined, so there are still plenty of
opportunity to "get it right." Developed nations have enjoyed an
advantageous position for too long. Now they need to think seriously about the changed
situation in the 21st century, and accept that globalization is gradually
narrowing the gap between them and the developing world rather than working to
expand it. Only in this way can it ensure the just and proper realignment of
the global economy.
