China & India: booming economies

DAVOS, Switzerland — The economic race between India and China dominated this year’s meeting of the world’s business and political leaders who clearly see a shift to an Asian century.

Two years ago, the annual gabfest focused on four challengers to U.S. economic power — China, India, Russia and Brazil. Last year, China took center stage. But this year the spotlight was on India and China, the world’s most populous countries with booming economies and huge domestic markets that are attracting major foreign investment.

Former World Bank president James Wolfensohn said at Sunday’s wrap-up session of the annual World Economic Forum that “the global shift” to India and China “is hugely important.”

“We’re moving from 6 billion to 9 billion people in the next 50 years,” and all but 200 million are going to be added to the developing world, “hence the focus on India and China,” he said.

“We are also looking economically at an 8 trillion dollar economy, in the developing world growing seven to eight times in the next 50 years and the rich world 2 1/2 times. These are dramatic shifts,” Wolfensohn said.

Sir Martin Sorrell, group chief executive of the British-based communications company WPP PLC and a co-chair of the annual meeting, called for a creative approach to different regions, especially Asia.

“That came sharply through in the cases of India and China,” he said.

He said India’s strong presentation to leaders during the forum and reports on the strength of the Chinese economy, putting it in third place globally by some measures, had sharpened the discussions.

“But it’s not just India and China. In the context of Asia it’s countries such as Pakistan, countries such as Indonesia, Vietnam, Bangladesh in the long term, that will become critically important,” Sorrell said.

Laura Tyson, dean of the London Business School, said when she asks Americans what they think about China, all she gets is “fear.”